Ping An’s Profit Rises as Stock Market Rally Boosts Returns

Ping An Insurance (Group) Co reported a 36% increase in net income to 92.6 billion yuan ($13.8 billion) in the first half of the year, as China's stock market rally boosted investment returns. Operating profit, which excludes short-term investment volatility and one-time items, rose 8.3%. China's CSI 300 Index climbed 8% in the half due to surging artificial intelligence-related stocks, which enhanced the value of insurers' stock portfolios as the industry expanded equity holdings.

Ping An's life operations saw solid growth in new business value despite demand for savings products, and the banking unit's profit also expanded. Investment income surged 42% to 136.9 billion yuan, while net realized and unrealized gains on investments increased about 20 times to 60.4 billion yuan. Impairment losses on financial assets rose 37% to 39.5 billion yuan.

Larger competitor China Life Insurance's preliminary results suggested a potential 235% jump in net income for the first half, likely driven by strong equity market performance and exposure to high-dividend yield and growth stocks such as AI-related ones.