Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility

for the contents

of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for
any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

Ping An Insurance (Group) Company of China, Ltd.

(A joint stock limited company incorporated in the People’s Republic of China with limited liability)
Stock Code: 2318 (HKD counter) and 82318 (RMB counter)
(Debt Stock Code: 5131)

ANNOUNCEMENT OF UNAUDITED RESULTS

FOR THE SIX MONTHS ENDED JUNE 30, 2024
The board of directors (the “Board”) of Ping An Insurance (Group) Company of China, Ltd.
(“Ping An” or the “Company”) hereby announces the unaudited results of the Company and its
subsidiaries for the six months ended June 30, 2024. This announcement, containing the full text
of the 2024 Interim Report of the Company, complies with the relevant requirements of the Rules
Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited in relation to
the information to accompany preliminary announcements of interim results.

Both the Chinese and English versions of this results announcement are available on the websites
of the Company (www.pingan.cn) and the Hong Kong Exchanges and Clearing Limited (the
“HKEX”) (www.hkexnews.hk). This results announcement is prepared in accordance with the
International Financial Reporting Standards. The Company’s 2024 Interim Report will be sent out
to the H shareholders of the Company and available for viewing on the websites of the HKEX
(www.hkexnews.hk) and the Company (www.pingan.cn) before late September 2024.

By order of the Board

Ma Mingzhe
Chairman

Shenzhen, the PRC, August 22, 2024

As at the date of this announcement, the executive directors of the Company are Ma Mingzhe, Xie
Yonglin and Cai Fangfang; the non-executive directors of the Company are Soopakij Chearavanont,
Yang Xiaoping, He Jianfeng and Cai Xun; the independent non-executive directors of the Company
are Ng Sing Yip, Chu Yiyun, Liu Hong, Ng Kong Ping Albert, Jin Li and Wang Guangqian.
Contents

ABOUT US CORPORATE GOVERNANCE

1 Introduction 82 Changes in the Share Capital and

4 Chairman’s Statement Shareholders’ Profile
9 Financial Highlights 85 Directors, Supervisors, Senior Management
and Employees
88 Significant Events
MANAGEMENT DISCUSSION AND ANALYSIS

10 Business Analysis FINANCIAL STATEMENTS

10 Performance Overview
104 Report on Review of Interim Condensed
14 Life and Health Insurance Business
Consolidated Financial Information
22 Property and Casualty Insurance Business
105 Interim Consolidated Income Statement
28 Insurance Funds Investment Portfolio
106 Interim Consolidated Statement of
34 Banking Business Comprehensive Income
40 Asset Management Business 107 Interim Consolidated Statement of
44 Technology Business Financial Position
48 Integrated Finance 109 Interim Consolidated Statement of
56 Health and Senior Care as a New Driver of Changes in Equity
Value Growth 111 Interim Consolidated Statement of Cash Flows
60 Analysis of Embedded Value 112 Notes to the Interim Condensed Consolidated
71 Liquidity and Capital Resources Financial Information
76 Sustainability
OTHER INFORMATION

165 Glossary
168 Corporate Information

Cautionary Statements Regarding Forward-Looking Statements

To the extent any statements made in this Report contain information that is not historical, these statements are essentially forward-looking.
These forward-looking statements include but are not limited to projections, targets, estimates and business plans that the Company expects
or anticipates may or may not occur in the future. Words such as “potential”, “estimates”, “expects”, “anticipates”, “objective”, “intends”, “plans”,
“believes”, “will”, “may”, “should”, variations of these words and similar expressions are intended to identify forward-looking statements.

These forward-looking statements are subject to known and unknown risks and uncertainties that may be general or specific. Readers should
be cautioned that a variety of factors, many of which are beyond the Company’s control, affect the performance, operations and results of
the Company, and could cause actual results to differ materially from the expectations expressed in any of the Company’s forward-looking
statements. These factors include, but are not limited to, exchange rate fluctuations, market shares, competition, environmental risks, changes
in legal, financial and regulatory frameworks, international economic and financial market conditions and other risks and factors beyond our
control. The forward-looking statements herein do not constitute a material commitment by the Company to investors, and investors and related
persons should maintain an adequate understanding of the risks and should understand the differences between commitments and forward-
looking statements such as plans and forecasts. These and other factors should be considered carefully; readers should not place undue reliance
on the Company’s forward-looking statements, and should pay attention to investment risks. In addition, the Company undertakes no obligation
to publicly update or revise any forward-looking statement that is contained in this Report as a result of new information, future events or
otherwise. Neither the Company nor any of its employees or affiliates is responsible for, or is making, any representations concerning the future
performance of the Company.
Introduction

ABOUT US
Ping An strives to become a world-leading integrated
financial, health and senior care services group. Ping An
actively responds to China’s 14th Five-Year Plan, focuses
on core financial businesses under a people-centered
approach, and strengthens the insurance protection
function to serve the real economy and support national
strategies including “Digital China” and “Healthy China.”
Ping An develops TechFin, green finance, inclusive finance,
pension finance, and digital finance. Ping An also develops
the “integrated finance + health and senior care” service
framework to provide professional “financial advisory,
family doctor, and senior care concierge” services. Ping An
advances comprehensive digital transformation to pursue
high-quality business development and improve the quality
and efficiency of financial businesses. Moreover, Ping An
accelerates ecosystem development to “empower financial
services with technologies, empower financial services with
ecosystems, and advance development with technologies.”
Remaining customer needs-oriented, Ping An continuously
develops its integrated finance model of “one customer,
multiple accounts, multiple products, and one-stop services”
under the people-centered philosophy. Ping An provides
diverse products and convenient services to 236 million retail
customers under the “worry-free, time-saving, and money-
saving” value proposition.

Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd. 1

 Introduction

Stable cash dividends amid steady business Ping An continued to develop integrated
results. The Group delivered a 16.4% annualized finance. Retail customers increased to 236
operating ROE, with operating profit million as of June 30, 2024; 24.9% of them held
attributable to shareholders of the parent four or more contracts within the Group, with a
company reaching RMB78,482 million in the retention rate of 97.8%.
first half of 2024. Three core businesses, namely
life and health insurance (“Life & Health” or Ping An continued to implement its health
“L&H”), property and casualty insurance (“Ping and senior care ecosystem strategy,
An P&C”), and banking, achieved growth and achieving significant results with differential
delivered RMB79,565 million in operating profit advantages. By integrating providers, Ping
attributable to shareholders of the parent An partnered with all top 100 hospitals and 3A
company, up 1.7% year on year. Attaching hospitals, and accumulated about 50,000 in-
importance to shareholder returns, Ping An will house doctors and contracted external doctors
pay an interim dividend of RMB0.93 per share in in China as of June 30, 2024. Ping An partnered
cash. with approximately 233,000 pharmacies as of
June 30, 2024, up by over 2,500 year to date.
Life & Health grew continuously and achieved Customers entitled to service benefits in the
high-quality development in its agent channel. health and senior care ecosystem accounted
New business value (“NBV”) amounted to for over 68% of Ping An Life’s NBV in the first
RMB22,320 million in the first half of 2024, half of 2024.
up 11.0% year on year. Agent productivity
continued to increase with NBV of the agent Ping An actively fulfilled its social
channel up 10.8% and NBV per agent up 36.0% responsibilities and supported the real
year on year. The number of Ping An Life’s economy. Ping An cumulatively invested nearly
individual life insurance sales agents was about RMB9.46 trillion as of June 30, 2024 to bolster the
340,000 as of June 30, 2024. real economy. Green investment of insurance
funds and green loan balance reached
Ping An P&C maintained good business quality RMB124,877 million and RMB164,634 million
with steady revenue growth. Ping An P&C’s respectively as of June 30, 2024. Ping An’s
insurance revenue rose 3.9% year on year to green insurance premium income amounted
RMB161,910 million in the first half of 2024. Ping to RMB23,605 million and funds provided for
An P&C maintained a healthy overall combined rural industrial vitalization via “Ping An Rural
ratio (“COR”) at 97.8% through enhanced Communities Support” totaled RMB17,024
business management and risk screening. million in the first half of 2024. Ping An made its
debut in the Fortune China ESG Impact List in
Ping An Bank maintained steady business 2024.
performance as well as adequate capital and
risk provisions. Net profit grew 1.9% year on Ping An further increased its brand value.
year to RMB25,879 million in the first half of 2024. In 2024, Ping An ranked 53rd in the Fortune
Core tier 1 capital adequacy ratio rose to 9.33% Global 500 list (1st among global insurers again
and provision coverage ratio was 264.26% as of and 5th among Chinese financial services
June 30, 2024. companies), 14th in the Fortune China 500 list,
29th in the Forbes Global 2000 list (1st among
Ping An delivered excellent results in Chinese insurers), and 1st in the Brand Finance
insurance funds investment. In a complex Insurance 100 list in relation to global insurance
and volatile market environment, Ping An’s brand value for the 8th consecutive year.
insurance funds investment portfolio achieved
an annualized comprehensive investment yield
of 4.2% in the first half of 2024, up 0.1 pps year
on year. The portfolio achieved a 5.4% average
comprehensive investment yield over the past
decade.

2 Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd.

 ABOUT US
Total Assets (in RMB million) Total Revenue (in RMB million)

Jun 30, 2024 12,226,666 1H 2024 554,097

Dec 31, 2023 11,583,417 1H 2023 546,134

Operating Profit Attributable to Shareholders of Equity Attributable to Shareholders of the

the Parent Company(1) (in RMB million) Parent Company (in RMB million)

1H 2024 78,482 Jun 30, 2024 931,208

1H 2023 78,950 Dec 31, 2023 899,011

Basic Operating Earnings per Share(1) (in RMB) Interim Dividend per Share (in RMB)

1H 2024 4.43 1H 2024 0.93

1H 2023 4.46 1H 2023 0.93

NBV of Life and Health Insurance Business(2) Embedded Value (“EV”) of Life and Health
(in RMB million) Insurance Business(2) (in RMB million)

1H 2024 22,320 Jun 30, 2024 916,230

1H 2023 20,112 Dec 31, 2023 830,974

Notes: (1) The computation of operating profit for the current (2) The computation of NBV for the current period and the same
period and the same period last year is based on the period last year and EV as of the end of the current period
end-2023 long-run investment return assumption (4.5%). and the end of last year is based on the end-2023 long-run
investment return assumption (4.5%) and risk discount rate
assumption (9.5%).

Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd. 3

 Chairman’s Statement

Seventy-five years on from its founding, China and senior care concierge.” By leveraging our
is still in its prime. Thirty-six years on from its expertise and integrity, we strive to provide every
founding, Ping An remains true to its original customer with ultimate “worry-free, time-saving, and
aspiration. The year 2024 marks the 75th anniversary money-saving” experience in integrated financial,
of the founding of the People’s Republic of China, health and senior care services. This is our solemn,
and is crucial to the implementation of China’s 14th enduring commitment to our 236 million retail
Five-Year Plan (2021-2025). Such five-year plans are customers and the general public.
highly relevant for people’s livelihoods, guiding
all aspects of our economy and society. The year
2024 also marks the 36th anniversary of Ping An. In
traditional Chinese culture, every 12 years constitute
a cycle. As an old saying goes, “Gain momentum
over a cycle to go far.” At this critical juncture, Ping
An remains true to its original aspiration, remembers
the past, and is planning a new journey.

We never forget our past. What has been Ping An’s

original aspiration since it was founded in Shekou
in 1988? We always remember the inculcation from At its 36th anniversary ceremony at Ping An Finance Center,
Shenzhen on May 27, 2024, Ping An called on employees and agents
Mr. Yuan Geng, founder of the Shekou Industrial to implement the “worry-free, time-saving, and money-saving”
Zone and former honorary chairman of Ping An: value proposition.
“The innovative and pioneering spirit is a gene
shared by people and enterprises from Shekou, and What do we mean by “worry-free, time-saving,
Ping An is one of the best inheritors of the gene.” and money-saving”? It is a value proposition
The slogan “Time is money, efficiency is life” is focused on details, especially those perceptible to
the most famous epitome of the gene. Chairman customers. Firstly, in a financial industry featuring
Yuan also declared, “Customer is king.” Back then, complicated rules, obscure terms and conditions,
this declaration served as an extremely forward- myriad accounts and cumbersome procedures, we
looking and enlightening reform manifesto. Why make our offerings as standardized, understandable
did we start a business? To meet customer needs and simple as possible to deliver one-stop, turn-key
wholeheartedly. Our operations must be oriented solutions and “worry-free” experience. Secondly,
by what our customers think about, care about, consumers increasingly value instant, convenient
and dream about. Over the past 36 years, Ping An products and services in today’s fast-changing
has always upheld Chairman Yuan’s instruction as world because “time is money.” Service speed and
its business philosophy: service first, customer first. efficiency is one of the core dimensions of corporate
Ultimately, Ping An realizes both customer value competitiveness. Therefore, we seek tirelessly to
and its own corporate value by delivering the relieve customers of anxious waiting by constantly
most cost-effective “worry-free, time-saving, and pushing the boundaries in saving customers’
money-saving” professional services. time. Thirdly, the financial industry’s value lies in
satisfying people’s aspirations for a better life, which
Ping An adheres to its original aspiration and means better quality of life and value for money.
founding mission of providing people-centered We strive to meet customer needs with highly cost-
financial services. At our anniversary ceremony effective products and services so that customers
on May 27, 2024, we pledged to comprehensively will feel treasured and satisfied. This is what
upgrade and promote our “worry-free, time- “money-saving” means. In short, the “worry-free,
saving, and money-saving” value proposition time-saving, and money-saving” value proposition
under the “integrated finance + health and senior
care” business strategy. We called on each of our
employees and agents to “serve customers as the
most professional financial adviser, family doctor

4 Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd.

 ABOUT US
addresses consumers’ most essential expectations and the fastest payment took only 10 seconds. Ping
and needs for financial services. Therefore, it is our An helps customers save money. By integrating
pursuit and top priority to deliver “worry-free, time- the Group’s insurance, banking and health care
saving, and money-saving” customer experience resources, Ping An Bank launched the “Credit Card
under a customer demand-driven approach. This is for Overseas Students” offering comprehensive
our inevitable choice in advancing the “integrated protection and various discounts in overseas
finance + health and senior care” strategy and students’ study, consumption, health care, travel
fulfilling our original aspiration and founding and so on, maybe the best value for money in the
mission. industry. Ping An Health upgraded its flagship “Ping
An Family Doctor” services under a one-stop active
How should we make our services “worry-free, health management service framework for Chinese
time-saving, and money-saving”? By firmly families, providing integrated financial customers
upholding a problem-oriented, people-centered with one-stop value-added health and senior
approach to finance, that is, by focusing on people’s care benefits. The “worry-free, time-saving, and
livelihoods and concerns. Ping An’s “worry-free, money-saving” service philosophy runs throughout
time-saving, and money-saving” value proposition consultation processes, with five-star reviews from
is an innovation of its financial service philosophy, over 98% of users.
a foothold for people-centered finance, a driver
of strategic business transformation, and a brand-
new starting point for boosting customer value
and realizing its vision. In the first half of 2024, the
Company established a group-level task force
dedicated to promoting the “worry-free, time-
saving, and money-saving” value proposition across
all business lines in a comprehensive, in-depth and
enduring manner. Ping An provides worry-free
services for customers. We designed a universal
login system “Ping An Integrated Accounts” and
upgraded the online smart mini-program “Magic Ping An Bank launched the unique “Credit Card for Overseas
Gateway” to connect our 13 member companies’ Students” in 2024 to deliver “worry-free, time-saving, and money-
apps and enable one-click access to auto, home saving” experience based on insights into families’ pain points.

and insurance purchases, investments, savings,

credit cards, and health and senior care. Ping With a positive long-term outlook, China’s economy
An P&C expanded its service scope of one-stop was generally stable with steady progress and
“auto insurance, auto services and auto life” to continued to recover in the first half of 2024 despite
82 items including emergency assistance, annual short-term challenges, including lackluster domestic
inspection and designated driver services, making demand, travail in replacing old growth drivers with
life simple for 200 million “Ping An Auto Owner” new ones, capital market fluctuations and mounting
app users. Ping An helps customers save time. external uncertainties. By continuously advancing
We continuously advance comprehensive digital the “integrated finance + health and senior care”
transformation to further enhance the protection strategy, we use the “worry-free, time-saving,
of personal information and consumer rights. Ping and money-saving” value proposition to drive
An Life launched the upgraded “1-1-1 Superfast comprehensive improvements in business quality
Claim” services to deliver “worry-free, time-saving, and efficiency. We serve the real economy by
and money-saving” superfast claim experience via developing core financial businesses and pursue
“one-sentence reporting, one-click uploading, and high-quality development by promoting digital
one-minute validation.” Ping An Life paid more transformation, thereby maintaining robust,
than 2.58 million claims in the first half of 2024, resilient business results. The Group delivered a
accounting for over 99% of all claims, among which 16.4% annualized operating ROE with operating
the largest payment amounted to RMB24.51 million profit attributable to shareholders of the parent
company reaching RMB78,482 million in the first half

Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd. 5

 Chairman’s Statement

of 2024. Net profit attributable to shareholders of the

parent company rose 6.8% year on year to RMB74,619
million. Three core businesses, namely Life & Health,
property and casualty insurance, and banking,
maintained growth and delivered RMB79,565 million
in operating profit attributable to shareholders of
the parent company, up 1.7% year on year. Life &
Health achieved high-quality development in the
first half of 2024, with NBV climbing 11.0% year
on year to RMB22,320 million. Ping An delivered
excellent results in insurance funds investment, with
a 4.2% annualized comprehensive investment yield
on its insurance funds investment portfolio. Ping
An attaches importance to shareholder returns and
will pay an interim dividend of RMB0.93 per share in Ping An established “Ping An Concierge Senior Care Service
cash, keeping cash dividends stable. Alliance” jointly with partners and launched “5-7-3 Home Safety
Renovation Service” in March 2024 to facilitate worry-free home-
based senior care.
Life & Health grows continuously and achieves
high-quality development in its agent channel. Ping An P&C delivers steady revenue growth
Ping An Life continued to enhance its channels and maintains good business quality. Ping An
and improve business quality under the “4 channels P&C’s insurance revenue rose 3.9% year on year
+ 3 products” strategy in the first half of 2024. By to RMB161,910 million in the first half of 2024. Ping
upgrading “insurance + service” solutions, Ping An P&C maintained a healthy overall COR at
An Life provides customers with excellent “worry- 97.8% through enhanced business management
free, time-saving, and money-saving” services. and risk screening. Ping An P&C advances data-
Reformed Life & Health business has gathered driven online operations and services. Committed
momentum. Life & Health NBV grew 11.0% year on to providing one-stop services covering “auto
year to RMB22,320 million. Ping An Life significantly insurance, auto services and auto life,” the “Ping
improved persistency ratios of insurance policies in An Auto Owner” app accumulated over 218 million
the first half of 2024, with the 13-month persistency registered users and over 142 million vehicles linked
ratio up 2.8 pps year on year and the 25-month to it as of June 30, 2024. Under the “worry-free,
persistency ratio up 3.3 pps year on year. Ping time-saving, and money-saving” value proposition,
An Life continuously enhances sales channels Ping An P&C launched “Hassle-free Repair and
via transformation. Ping An Life agent channel Worry-free Claims” services featuring “hassle-
continued to improve the team structure with NBV free auto repair, whole-process transparency, and
and NBV per agent up 10.8% and 36.0% respectively concierge-style services.” With excellent claim
year on year. The proportion of “Talent +” new service experience, Ping An P&C has ranked among
agents increased by 10.2 pps year on year thanks the best in the Auto Insurance Service Quality
to the focus on recruiting high-quality new agents Index evaluation by China Banking and Insurance
through high-quality existing ones. The number of Information Technology Management Co., Ltd. for
Ping An Life’s individual life insurance sales agents consecutive years.
was about 340,000 as of June 30, 2024. Bancassurance
channel adhered to its value-oriented transformation Ping An Bank maintains steady business
strategy and boosted its NBV by 17.3% year on performance and solid asset quality. Net profit
year. “Insurance + service” offerings have gained grew 1.9% year on year to RMB25,879 million in the
traction. Ping An Life provided health management first half of 2024. Core tier 1 capital adequacy ratio
services to nearly 16 million customers in the first increased to 9.33% as of June 30, 2024. Ping An Bank
half of 2024. Over 120,000 customers qualified for continuously strengthens risk management, and
home-based senior care services, which covered maintains adequate risk provisions. Non-performing
64 cities across China as of June 30, 2024. Ping loan ratio and provision coverage ratio were
An has unveiled premium health and senior care 1.07% and 264.26% respectively as of June 30, 2024.
communities in five cities.

6 Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd.

 ABOUT US
Ping An Bank promotes high-quality sustainable businesses in which Ping An acts as a payer,
development of its retail business. Retail assets leveraging its over ten years of operational and
under management (“AUM”) rose 2.2% year to date management experience in insurance and health
to RMB4,120,630 million, and retail deposit balance care industries. Ping An Health, Ping An’s online
grew 6.9% year to date to RMB1,290,345 million as flagship medical platform, achieved RMB2,093 million
of June 30, 2024. Ping An Bank serves the real in revenue and RMB57 million in net profit in the
economy by continuously increasing financing first half of 2024. Ping An Health had approximately
support for key areas. Corporate loan balance grew 40 million paying users over the 12 months ended
11.4% year to date to RMB1,592,139 million as of June June 30, 2024. Ping An’s increasingly significant
30, 2024. New loans granted to four basic industries, differential advantages are reflected in “online,
namely infrastructure, the auto ecosystem, public in-store and home-delivered” service capabilities,
utilities and real estate, grew 42.1% year on year hundreds of extensive health and senior care service
in the first half of 2024. New loans granted to resources, and accessible high-quality proprietary
three major emerging industries, namely new resources. By integrating providers, Ping An
manufacturing, new energy and new lifestyle, grew partnered with all top 100 hospitals and 3A hospitals,
47.1% year on year in the first half of 2024. accumulated approximately 50,000 in-house and
contracted external doctors, and cooperated with
Ping An creates value for customers and approximately 233,000 pharmacies (up by over 2,500
shareholders by continuously developing its year to date) across China as of June 30, 2024. Ping
integrated finance model. Ping An focuses on An empowers core financial businesses through
retail customer development and strengthens “Product + Service” offerings. Customers entitled
cross-selling among customer segments, which to service benefits in the health and senior care
brings about higher operational efficiency, reflected ecosystem accounted for over 68% of Ping An Life’s
especially by lower customer acquisition cost, NBV in the first half of 2024. More than 63% of Ping
lower management and service costs, and higher An’s 236 million retail customers used services from
customer retention rates. Ping An builds a brand the health and senior care ecosystem as of June
of heartwarming financial services by providing 30, 2024. They held approximately 3.36 contracts
“worry-free, time-saving, and money-saving” and RMB57,500 in AUM per capita, 1.6 times and 3.8
one-stop integrated finance solutions. Ping An times those held by non-users of these services
accumulated 236 million retail customers as of June respectively.
30, 2024; 24.9% of them held four or more contracts
within the Group, with a 97.8% retention rate.
Contracts per retail customer reached 2.93. Over
87.92 million retail customers held multiple contracts
with different subsidiaries. New customers acquired
in the first half of 2024 totaled 13.92 million thanks
to comprehensive integrated finance products,
diverse customer contact channels, and continued
implementation of the “worry-free, time-saving,
and money-saving” value proposition. Retail cross-
selling deepens as Ping An adheres to long-
term customer development and continuously
gains customer insights. Middle-class and above
customers accounted for approximately 77.7% of the
Group’s total retail customers, and high-net-worth
Ping An Health upgraded its “Ping An Family Doctor” service brand
individuals (“HNWIs”) held about 20.13 contracts per in June 2024 by launching a one-stop proactive health management
customer as of June 30, 2024. service framework and promising to provide proactive health
management, effective chronic disease management and
whole-course disease management.
Ping An develops health and senior care as
a new driver of value growth, with customer
development gradually yielding results. Ping An
launched an innovative Chinese “managed care
model” by seamlessly combining its online/offline
health and senior care ecosystem with financial

Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd. 7

 Chairman’s Statement

Ping An continuously builds world-leading AI and challenges to high-quality development will

capabilities to empower core financial businesses coexist due to mounting complexity, severity and
at an increasing pace. Thanks to its long-term, in- uncertainty of the external environment. We shall
depth focus on developing core technologies and keep calm and carry on amid the complexity,
securing proprietary intellectual property rights, severity and uncertainty. We firmly believe the
Ping An ranked second in the world with 1,564 fundamental trend of China’s economic recovery
generative AI patent applications according to the and positive long-term outlook has not changed.
latest ranking released by the World Intellectual While boosting confidence and morale, we shall
Property Organization. Ping An had a first- keep in mind that it is crucial to maintain our
class technology team of over 20,000 technology strategic resolve and play our part.
developers and over 3,000 scientists as of June
30, 2024. The Group’s patent applications led In long-distance running, the last mile is often
most international financial institutions, totaling the toughest. We shall remain true to our original
52,185 as of June 30, 2024. From the perspective aspiration as we embark on a new journey. In
of transforming and upgrading Ping An’s core the second half of 2024, Ping An will thoroughly
businesses, technology benefits are reflected in study and implement the spirit of the Third
higher sales, better business efficiency, and stronger Plenary Session of the 20th Central Committee
risk management. The volume of services provided of the Communist Party of China (the “CPC”) as
by AI service representatives reached about 870 well as the Central Financial Work Conference’s
million times, and claims savings via smart fraud and the Central Economic Work Conference’s
risk identification grew 4.3% year on year to RMB6.1 decisions on financial work. Ping An will uphold
billion in the first half of 2024. the CPC Central Committee’s centralized, unified
leadership over financial work, adhere to a people-
Ping An actively pursues sustainable development centered value orientation, relentlessly pursue
and boosts brand value. Ping An cumulatively high-quality development, and vigorously advance
invested nearly RMB9.46 trillion to bolster the real Chinese modernization. On the new journey, Ping
economy, and its green investment of insurance An will continue to advance reforms in pursuit of
funds and green loan balance reached RMB124,877 sustainable, well-structured and high-quality resilient
million and RMB164,634 million respectively as of growth. Ping An will continue to implement its
June 30, 2024. Ping An’s green insurance premium business policy of “focusing on core businesses,
income amounted to RMB23,605 million and funds boosting revenue and cutting costs, optimizing
provided for rural industrial vitalization via “Ping structure, and enhancing quality and efficiency,”
An Rural Communities Support” totaled RMB17,024 advance its technology-driven “integrated finance
million in the first half of 2024. Ping An ranked 53rd + health and senior care” strategy, and develop
in the Fortune Global 500 list (1st among global toward an upgraded version of “Wells Fargo +
insurers again and 5th among Chinese financial UnitedHealth.” Moreover, Ping An will relentlessly
services companies), and made its debut in the promote the “worry-free, time-saving, and money-
Fortune China ESG Impact List in 2024. Ping An saving” value proposition in 2024. Everyone at
ranked 29th in the Forbes Global 2000 list (1st among Ping An will take the “worry-free, time-saving,
Chinese insurers), and 1st in the Brand Finance and money-saving” value proposition as his/her
Insurance 100 list in relation to global insurance business guidance, service standard, and long-term
brand value for the 8th consecutive year in 2024. commitment. By doing so, we will make greater
Moreover, Ping An was honored as “China’s Most efforts to serve the real economy and people’s
Respected Company” by the Economic Observer for livelihoods, safeguard financial security, and develop
the 21st consecutive year in 2024. TechFin, green finance, inclusive finance, pension
finance and digital finance, thereby contributing to
Only by gaining momentum midway can we high-quality development of the financial industry
overcome future hurdles; only by riding the with Chinese characteristics, Chinese modernization
wind can we break the waves and brave the and the great rejuvenation of the Chinese nation.
voyage. In the second half of 2024, China’s
household consumption and public expectations
will continuously improve, growth momentum will
gradually strengthen, and economic recovery will
be further bolstered as the government deepens
reform comprehensively, promotes innovation- Chairman

driven development, and expands domestic Shenzhen, PRC

demand proactively. Meanwhile, opportunities for August 22, 2024

8 Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd.

Financial Highlights

ABOUT US
For the six months For the six months
ended June 30, 2024/ ended June 30, 2023/
(in RMB million) As at June 30, 2024 As at December 31, 2023 Change
THE GROUP
Operating profit attributable to shareholders of
the parent company(1) 78,482 78,950 -0.6%, YoY
Operating ROE(1) (annualized, %) 16.4 17.6 -1.2 pps, YoY
Basic operating earnings per share(1) (in RMB) 4.43 4.46 -0.7%, YoY
Interim dividend per share (in RMB) 0.93 0.93 –, YoY
Net profit attributable to shareholders of the
parent company 74,619 69,841 6.8%, YoY
Equity attributable to shareholders of the parent
company 931,208 899,011 3.6%, YTD
Group comprehensive solvency margin ratio (%) 208.8 208.0 0.8 pps, YTD
Total assets 12,226,666 11,583,417 5.6%, YTD
Total liabilities 10,961,716 10,354,453 5.9%, YTD

LIFE AND HEALTH INSURANCE BUSINESS

Operating ROE(1) (annualized, %) 29.4 33.6 -4.2 pps, YoY
Operating profit(1) 56,301 55,564 1.3%, YoY
Value of first half year’ s new business(2) 22,320 20,112 11.0%, YoY
Contractual service margin (“CSM”) 774,399 768,440 0.8%, YTD
Comprehensive solvency margin ratio of Ping An
Life (%) 208.8 194.7 14.1 pps, YTD

PROPERTY AND CASUALTY INSURANCE

BUSINESS
Net profit 9,954 9,285 7.2%, YoY
COR(3) (%) 97.8 98.0 -0.2 pps, YoY
Auto insurance COR(3) (%) 98.1 97.1 1.0 pps, YoY
Comprehensive solvency margin ratio (%) 205.0 207.8 -2.8 pps, YTD

BANKING BUSINESS
Net profit 25,879 25,387 1.9%, YoY
Net interest margin (annualized, %) 1.96 2.55 -0.59 pps, YoY
Cost-to-income ratio (%) 27.37 26.45 0.92 pps, YoY
Non-performing loan ratio (%) 1.07 1.06 0.01 pps, YTD
Provision coverage ratio (%) 264.26 277.63 -13.37 pps, YTD
Core tier 1 capital adequacy ratio (%) 9.33 9.22 0.11 pps, YTD

ASSET MANAGEMENT BUSINESS

Net profit 1,685 1,976 -14.7%, YoY

TECHNOLOGY BUSINESS
Operating profit 872 2,250 -61.2%, YoY

INTEGRATED FINANCE, HEALTH AND SENIOR

CARE
Number of retail customers (in million) 236.05 231.57 1.9%, YTD
Number of contracts per customer (contract) 2.93 2.95 -0.7%, YTD
Number of customers holding ≥4 contracts within
the Group (in million) 58.77 58.56 0.4%, YTD
Operating profit per customer(1) (in RMB) 260.37 283.54 -8.2%, YoY
Number of retail customers who used our health
and senior care ecosystem (in million) 149.22 147.13 1.4%, YTD
Notes: (1) The computation of operating profit for the current period and the same period last year is based on the end-2023 long-run
investment return assumption (4.5%).
(2) The computation of NBV for the current period and the same period last year is based on the end-2023 long-run investment
return assumption (4.5%) and risk discount rate assumption (9.5%).
(3) COR = (insurance service expenses + (allocation of reinsurance premiums paid – amount recovered from reinsurer) + (net
insurance finance expenses for insurance contracts issued – net reinsurance finance income for reinsurance contracts held) +
changes in insurance premium reserves)/ insurance revenue.

Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd. 9

 Business Analysis
Performance Overview

Ping An delivered a 16.4% annualized operating ROE with operating

profit attributable to shareholders of the parent company amounting to
RMB78,482 million in the first half of 2024. Three core businesses, namely
Life & Health, property and casualty insurance, and banking, maintained
growth and delivered RMB79,565 million in operating profit attributable to
shareholders of the parent company, up 1.7% year on year.
Maintaining stable cash dividends, Ping An will pay an interim dividend of
RMB0.93 per share in cash for 2024.

CONSOLIDATED RESULTS OPERATING PROFIT OF THE GROUP

Ping An provides a wide range of financial products Operating profit is a meaningful business
and services via multiple distribution channels. performance evaluation and comparison metric
Ping An engages in financial businesses through given the long-term nature of the Company’s major
subsidiaries including Ping An Life, Ping An P&C, L&H business. Ping An defines operating profit after
Ping An Annuity, Ping An Health Insurance, Ping An tax as reported net profit excluding the following
Bank, Ping An Trust, Ping An Securities, Ping An items which are of a short-term, volatile or one-off
Asset Management, and Ping An Financial Leasing. nature and others:
Ping An engages in technology business through
member companies including Lufax Holding, • Short-term investment variance applies to Life
OneConnect, Ping An Health, and Autohome. & Health business excluding the part subject
to the variable fee approach (the “VFA”)(1).
For the six months ended June 30 This short-term investment variance is the
(in RMB million) 2024 2023 Change (%)
variance between the actual investment return
Operating profit on the aforesaid business and the embedded
attributable to value long-run investment return assumption.
shareholders of the Net of the short-term investment variance,
parent company(1) 78,482 78,950 (0.6) the investment return on the aforesaid Life
Basic operating earnings & Health business is locked at 4.5%(2). Debt
per share (in RMB)(1) 4.43 4.46 (0.7) investments at fair value through other
Operating ROE comprehensive income backing such business
(annualized, %)(1) 16.4 17.6 -1.2 pps are measured at cost.
Interim dividend per share
(in RMB) 0.93 0.93 – • The impact of one-off material non-operating
Net profit attributable items and others is the impact of material
to shareholders of the items that management considered to be non-
parent company 74,619 69,841 6.8 operating incomes and expenses. Such impact
ROE (annualized, %) 16.2 15.4 0.8 pps in the first half of 2024 and the first half of 2023
Note: (1) The computation of operating profit for the current comprised the revaluation gain or loss on the
period and the same period last year is based on the convertible bonds issued by Lufax Holding to
end-2023 long-run investment return assumption (4.5%).
the Company.

Notes: (1) Insurance finance income or expenses of liabilities

subject to the VFA match the changes in the fair
value of the underlying items backing such business.
Therefore, no adjustment is made when operating
metrics are measured.
(2) The computation of operating profit for the current
period and the same period last year is based on the
end-2023 long-run investment return assumption (4.5%).

10 Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd.

China’s economy recovered steadily in the first half of 2024, but still faced short-term challenges including
economic restructuring, lackluster growth momentum, and mounting external uncertainty. Facing
opportunities and challenges, Ping An focused on core financial businesses and strengthened the insurance
protection function to serve the real economy. Ping An continued to implement its business policy of
“focusing on core businesses, boosting revenue and cutting costs, optimizing structure, and enhancing

MANAGEMENT DISCUSSION AND ANALYSIS

quality and efficiency.” Advancing the technology-driven “integrated finance + health and senior care”
strategy, Ping An continuously consolidated its integrated finance advantages, remained customer needs-
oriented, and pursued high-quality development.

The Group’s operating profit attributable to shareholders of the parent company declined 0.6% year on
year to RMB78,482 million and net profit attributable to shareholders of the parent company rose 6.8% year
on year to RMB74,619 million in the first half of 2024. Three core businesses, namely Life & Health, property
and casualty insurance, and banking, maintained growth and delivered RMB79,565 million in operating profit
attributable to shareholders of the parent company, up 1.7% year on year.

The reconciliation between operating profit and reported net profit is as follows:

2024

Life and Property Other

health and casualty Asset businesses
For the six months ended June 30 insurance insurance Banking management Technology and
(in RMB million) business business business business business elimination The Group

Operating profit attributable to

shareholders of the parent company 54,657 9,909 14,999 1,296 291 (2,670) 78,482
Operating profit attributable to non-
controlling interests 1,644 45 10,880 389 581 578 14,117

Operating profit (A) 56,301 9,954 25,879 1,685 872 (2,092) 92,599

Plus:
Short-term investment variance (B) (4,078) – – – – – (4,078)
Impact of one-off material non-
operating items and others (C) – – – – 182 – 182

Net profit (D=A+B+C) 52,224 9,954 25,879 1,685 1,054 (2,092) 88,704

Net profit attributable to shareholders

of the parent company 50,612 9,909 14,999 1,296 473 (2,670) 74,619
Net profit attributable to non-controlling
interests 1,612 45 10,880 389 581 578 14,085

Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd. 11

 Business Analysis
Performance Overview

2023

Life and Property Other

health and casualty Asset businesses
For the six months ended June 30 insurance insurance Banking management Technology and
(in RMB million) business business business business business elimination The Group

Operating profit attributable to

shareholders of the parent company 54,288 9,242 14,714 1,412 1,735 (2,441) 78,950
Operating profit attributable to non-
controlling interests 1,276 43 10,673 564 515 576 13,647

Operating profit (A) 55,564 9,285 25,387 1,976 2,250 (1,865) 92,597

Plus:
Short-term investment variance (B) (9,229) – – – – – (9,229)
Impact of one-off material non-
operating items and others (C) – – – – 58 – 58

Net profit (D=A+B+C) 46,335 9,285 25,387 1,976 2,308 (1,865) 83,426

Net profit attributable to shareholders

of the parent company 45,121 9,242 14,714 1,412 1,793 (2,441) 69,841
Net profit attributable to non-controlling
interests 1,214 43 10,673 564 515 576 13,585
Notes: (1) The life and health insurance business represents the results of three subsidiaries, namely Ping An Life, Ping An Annuity, and
Ping An Health Insurance. The property and casualty insurance business represents the results of Ping An P&C. The banking
business represents the results of Ping An Bank. The asset management business represents the results of subsidiaries that
engage in asset management business including Ping An Securities, Ping An Trust, Ping An Asset Management, Ping An
Financial Leasing, and Ping An Overseas Holdings. The technology business represents the results of member companies that
engage in technology business including Lufax Holding, OneConnect, Ping An Health, and Autohome. Eliminations are mainly
offsets against shareholding among business lines.
(2) The computation of operating profit for the current period and the same period last year is based on the end-2023 long-run
investment return assumption (4.5%).
(3) Figures may not match the calculation due to rounding.

12 Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd.

OPERATING PROFIT AFTER TAX ATTRIBUTABLE TO SHAREHOLDERS OF THE PARENT COMPANY
For the six months ended June 30
(in RMB million) 2024 2023 Change (%)

Life and health insurance business 54,657 54,288 0.7

MANAGEMENT DISCUSSION AND ANALYSIS

Property and casualty insurance business 9,909 9,242 7.2
Banking business 14,999 14,714 1.9
Asset management business 1,296 1,412 (8.2)
Technology business 291 1,735 (83.2)
Other businesses and elimination (2,670) (2,441) 9.4

The Group 78,482 78,950 (0.6)

Note: Figures may not match the calculation due to rounding.

OPERATING ROE (ANNUALIZED)

For the six months ended June 30
(%) 2024 2023 Change (pps)

Life and health insurance business 29.4 33.6 (4.2)

Property and casualty insurance business 15.2 15.2 –
Banking business 11.9 12.7 (0.8)
Asset management business 2.8 2.4 0.4
Technology business 0.6 3.6 (3.0)
Other businesses and elimination N/A N/A N/A

The Group 16.4 17.6 (1.2)

OPERATING EQUITY ATTRIBUTABLE TO SHAREHOLDERS OF THE PARENT COMPANY

June 30, December 31,
(in RMB million) 2024 2023 Change (%)

Life and health insurance business(1) 400,492 344,892 16.1

Property and casualty insurance business 134,882 124,647 8.2
Banking business 250,307 244,777 2.3
Asset management business 92,407 92,836 (0.5)
Technology business 93,683 97,250 (3.7)
Other businesses and elimination (748) 13,090 N/A

The Group(1) 971,023 917,492 5.8

Note: (1) Excluding changes in fair value of debt investments at fair value through other comprehensive income backing life and health
insurance business, as well as accumulated insurance finance expenses for insurance contract liabilities recognized through
other comprehensive income that can be reclassified into profit or loss, except for the part subject to the VFA.

Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd. 13

 Business Analysis
Life and Health Insurance Business

Life & Health business grew continuously and achieved high-quality

development in the agent channel. Life & Health NBV grew 11.0% year on
year as agent channel NBV and NBV per agent increased by 10.8% and
36.0% respectively year on year in the first half of 2024.
“Insurance + service” offerings gained traction. Ping An Life provided
health management services to nearly 16 million customers in the first
half of 2024. Over 120,000 customers qualified for home-based senior care
services, which covered 64 cities across China as of June 30, 2024. Ping An
unveiled premium health and senior care communities in five cities, which
are currently under construction and will be open for business from 2025
onward.
Business quality improved steadily. Ping An Life recorded a material
improvement in its persistency ratios with the 13-month persistency ratio
rising 2.8 pps year on year and 25-month persistency ratio rising 3.3 pps
year on year in the first half of 2024.

BUSINESS OVERVIEW Key Indicators

The Company conducts its life and health insurance For the For the
six months six months
business through Ping An Life, Ping An Annuity, and ended June ended June
Ping An Health Insurance. 30, 2024/ 30, 2023/
June 30, December 31, Change
(in RMB million) 2024 2023 (%)
Ping An Life continued to enhance its channels
and improve business quality under the “4 channels NBV(1) 22,320 20,112 11.0
NBV margin(1) (based on first-
+ 3 products” strategy in the first half of 2024. By year premium (“FYP”), %) 24.2 17.7 6.5 pps
upgrading “insurance + service” solutions, Ping NBV margin(1) (based on
An Life continuously strengthened its presence annualized new premium
(“ANP”), %) 29.9 24.8 5.1 pps
in health and senior care sectors and provided FYP used to calculate NBV 92,218 113,901 (19.0)
customers with professional, heart-warming EV(1) 916,230 830,974 10.3
services, empowering high-quality development of Operating ROEV(2)
(annualized, %) 15.4 14.4 1.0 pps
the Company. Life & Health NBV grew 11.0% year
on year to RMB22,320 million as agent channel NBV New business CSM 23,737 27,157 (12.6)
and NBV per agent increased by 10.8% and 36.0% New business CSM margin (%) 10.3 10.6 -0.2 pps
respectively year on year in the first half of 2024. Present value of expected
premiums from new business
sold 229,530 257,100 (10.7)
Operating profit after tax(3) 56,301 55,564 1.3
Operating ROE(3)
(annualized, %) 29.4 33.6 -4.2 pps
Net profit 52,224 46,335 12.7
Notes: (1) The computation of NBV for the current period and
the same period last year and EV as of the end of the
current period and the end of last year is based on the
end-2023 long-run investment return assumption (4.5%)
and risk discount rate assumption (9.5%).
(2) The computation of operating ROEV for the first half
of 2023 is based on a 5% long-run investment return
assumption and an 11% risk discount rate.
(3) The computation of operating profit for the current
period and the same period last year is based on the
end-2023 long-run investment return assumption (4.5%).
(4) Figures may not match the calculation due to rounding.

14 Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd.

CHANNEL DEVELOPMENT For the six months ended June 30 Change
Under the value orientation of high-quality (in RMB million) 2024 2023 (%)
development, Ping An Life continued to deepen the
Agent productivity and income
transformation and build multichannel professional
sales capabilities, significantly improving the Agent channel NBV(1) 18,106 16,340 10.8

MANAGEMENT DISCUSSION AND ANALYSIS

development quality. Innovative channels including Average number of agents
bancassurance and Community Grid accounted for per month (in thousand) 308 379 (18.7)
17.4% of Ping An Life’s NBV in the first half of 2024. NBV per agent(1) (RMB per
agent per half year) 58,708 43,168 36.0
• Agent channel. Under the value orientation Activity rate of agents(2) (%) 55.9 54.1 1.8 pps
of high-quality development, Ping An Life Agent income (RMB per agent
continued to deepen the transformation and per month) 11,962 10,887 9.9
improve the team structure. Agent channel Including: Income from
NBV grew 10.8% year on year in the first half of Ping An Life’ s products
2024. Ping An Life effectively improved agent (RMB per agent per month) 9,608 8,668 10.8
productivity via hands-on training, scenario- Notes: (1) The computation of NBV for the current period and the
based empowerment, benefit support and high- same period last year is based on the end-2023 long-run
investment return assumption (4.5%) and risk discount
end customer services, boosting NBV per agent rate assumption (9.5%).
by 36.0% year on year. Ping An Life focused (2) Activity rate of agents = annual total of monthly agents
who issued insurance policies / annual total of monthly
on recruiting high-quality new agents through agents on board.
high-quality existing ones, with the sources (3) Figures may not match the calculation due to rounding.
of new recruits constantly improving. The
proportion of “Talent +” new agents increased Number of individual life insurance sales agents
by 10.2 pps year on year. The number of Ping June 30, December 31, Change
Ping An Life 2024 2023 (%)
An Life’s individual life insurance sales agents
was about 340,000 as of June 30, 2024. Number of individual life
insurance sales agents
(in thousand) 340 347 (2.0)

Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd. 15

 Business Analysis
Life and Health Insurance Business

• Bancassurance channel. Ping An Life LIFE INSURANCE PRODUCTS

adhered to its value-oriented transformation Ping An Life actively follows national strategies,
strategy and focused on high-quality growth, serving as both an economic shock absorber
continuously increasing the bancassurance and a social stabilizer. Under a customer-centric
channel’s value contributions. Bancassurance philosophy, Ping An Life continuously diversifies and
channel NBV rose 17.3% year on year to upgrades its insurance product portfolio to provide
RMB2,641 million in the first half of 2024. In more comprehensive products. By leveraging the
respect of cooperation with banks, Ping An Group’s health and senior care ecosystem, Ping
Life strengthened long-term mutual trust An Life rolls out “insurance + service” products
and cooperation by furthering the exclusive in an orderly manner, providing customers with
agency model with Ping An Bank, consolidating heartwarming services.
partnerships with large state-owned banks, and
developing potential channels including major • In respect of insurance products, Ping An
joint-stock banks and urban commercial banks. Life focuses on core customer demands for
In respect of team development, Ping An Life health protection, pension reserves, and wealth
built high-productivity teams by tightening management amid increasing household
recruitment rules, and promoted high-quality wealth, accelerating population aging, and
development of the teams via accelerated diverse insurance protection needs in China.
cultivation and upskilling. In respect of Ping An Life constantly diversifies its offerings
supporting services, Ping An Life improved and optimizes its product portfolio to provide
customer service experience by advancing the customers with worry-free and heartwarming
centralized operation model, delivering efficient insurance protection. Ping An Life develops
and convenient end-to-end enrollment services, the insurance protection market. For critical
and offering diverse value-added services. illness insurance, Ping An Life launched brand-
new “Ping An Ru Yi” which combines wealth
• Community Grid and other channels. Ping management and critical illness insurance, and
An Life continuously rolled out Community upgraded flagship “Shou Hu Bai Fen Bai” to
Grid, focusing on “retained customers(1)” meet customers’ multilevel protection needs.
and providing high-quality, sustainable and For non-critical illness insurance, Ping An Life
heartwarming services. Ping An Life has set responded to government policies on health
up 126 Community Grid outlets in 90 cities as insurance tax credits by launching more
of June 30, 2024, an increase of 39 cities year attractive protection products for taxpayers,
to date, covering all core cities cross China. including brand-new “Zhi Ying Bei Hu” long-
Ping An Life has built a team of approximately term care insurance and “e Wan Jia” medical
15,000 highly competent specialists as of insurance. Ping An Life expands the pension
June 30, 2024, who perform effective service market. In response to longer life expectancy
operations by implementing and upgrading in China, Ping An Life launched “Jin Yue
the “Pre-sell, Soft-sell, Cross-sell and Up-sell” Annuity 24,” an upgraded version offering an
business model. As a result, Community Grid’s extended age limit for enrollment and a more
13-month policy persistency ratio of retained flexible means of receiving pension benefits.
customers improved by 5.8 pps year on year Ping An Life also launched “Yi Xiang Yan Nian
in the first half of 2024, and FYP was 2.6 times 24,” an upgraded annuity product which offers
that for the same period last year. In this way, diverse optional pension plans. Ping An Life
Ping An Life made continuous breakthroughs strengthens the wealth management market.
in customer development. In respect of the Centering on “Jin Yue” products, Ping An Life
lower-tier channel, Ping An Life continuously continuously upgraded products by launching
promoted sales in seven provinces, innovated participating products based on traditional
and upgraded business models, and gradually ones and diversifying premium payment
built robust sales channels in the first half of periods to meet different customer demands
2024. and preferences.

Note: (1) Retained customers are customers holding in-force

insurance policies which were sold by Ping An Life’s
former agents before their agency relationship
terminated.

16 Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd.

• In respect of “insurance + health care,” in the needs. Moreover, Ping An launched the “Cheng
first half of 2024, Ping An Life provided nearly Nuan Xia Ling” public welfare program in
16 million customers with health management multiple cities to popularize knowledge about
services, which were widely welcomed by home safety and raise public awareness of
customers. Since its launch in 2021, Ping An aging-in-place renovation. Ping An’s home-

MANAGEMENT DISCUSSION AND ANALYSIS

Zhen Xiang RUN Health Services Plan (“Ping based senior care services covered 64 cities
An Zhen Xiang RUN”) has provided customers across China as of June 30, 2024, and over
with full-lifecycle health care services including 120,000 customers qualified for such services,
five highlights, namely unique checkups, blood giving positive general feedback.
sugar control, online consultation, outpatient
appointment assistance and accompanying • In respect of “insurance + high-end senior
consultation, and critical illness management. care,” Ping An is committed to developing the
Ping An Life upgraded Ping An Zhen Xiang premium senior care market and delivering
RUN by including health management plans, innovative “one-stop” full-lifecycle senior
health diagnostics and family doctor services care solutions. Under the core philosophy of
and upgrading chronic disease prevention “seven-dimensional health care(1)” and the
and control services. In this way, Ping An value proposition of “prime life, exclusive
Life provides customers with full-lifecycle services, and respectful care,” Ping An provides
protection by delivering “worry-free, time- customized health and senior care services
saving, and money-saving” one-stop health and high-quality heartwarming health and
care experience in three main service scenarios, senior care experience to meet the growing
namely health, medical care and chronic demand for premium senior care in China. Ping
disease. An unveiled premium health and senior care
communities in five cities as of June 30, 2024,
• In respect of “insurance + home-based which are currently under construction and will
senior care,” Ping An continuously develops be open for business from 2025 onward.
its service framework covering scenarios
including medical care, housing, nursing, and Note: (1) Seven-dimensional health care refers to seven health
dimensions, namely the body, cognition, emotion, spirit,
entertainment to optimize customer experience. financial status, career and social interaction.
Ping An established “Ping An Concierge Senior
Care Service Alliance” jointly with partners
and launched “5-7-3 Home Safety Renovation
Service” in March 2024. Parties involved jointly
set up service standards and a supervision
framework to meet the elderly’s home safety

Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd. 17

 Business Analysis
Life and Health Insurance Business

Ping An Life’s 13-month persistency ratio of • The impact of one-off material non-operating
insurance policies improved by 2.8 pps year on year items and others is the impact of material
to 96.6%, and 25-month persistency ratio improved items that management considered to be non-
by 3.3 pps year on year to 90.9% in the first half of operating incomes and expenses.
2024, indicating steadily improving business quality.
Going forward, Ping An Life will boost persistency Notes: (1) Insurance finance income or expenses of liabilities
subject to the VFA match the changes in the fair
ratios and the efficiency of renewal premium value of the underlying items backing such business.
collection by continuously enhancing smart, digital Therefore, no adjustment is made when operating
metrics are measured.
ex ante services and precise collection regarding (2) The computation of operating profit for the current
policies to be renewed. period and the same period last year is based on the
end-2023 long-run investment return assumption (4.5%).
For the six months ended June 30 2024 2023 2022

Ping An Life
13-month persistency ratio (%) 96.6 93.8 91.7
25-month persistency ratio (%) 90.9 87.6 80.6

ANALYSIS OF OPERATING PROFIT AND PROFIT

SOURCES
Operating profit is a meaningful business
performance evaluation and comparison metric
given the long-term nature of the Company’s major
life and health insurance business. Ping An defines
operating profit after tax as reported net profit
excluding items which are of a short-term, volatile
or one-off nature and others:

• Short-term investment variance applies to Life

& Health business excluding the part subject
to the VFA(1). This short-term investment
variance is the variance between the actual
investment return on the aforesaid business
and the embedded value long-run investment
return assumption. Net of the short-term
investment variance, the investment return on
the aforesaid Life & Health business is locked at
4.5%(2). Debt investments at fair value through
other comprehensive income backing such
business are measured at cost;

18 Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd.

For the six months ended June 30 Change For the six months ended June 30
(in RMB million) 2024 2023 (%) (in RMB million) 2024 2023 Change (%)

Insurance service result and Opening CSM 768,440 818,683 (6.1)

others 47,047 48,115 (2.2)

MANAGEMENT DISCUSSION AND ANALYSIS

Contribution from new business
Release of CSM 36,529 38,665 (5.5)
( “New Business CSM” ) 23,737 27,157 (12.6)
CSM release base 810,928 856,159 (5.3)
Present value of expected
CSM release rate premiums from new
(annualized, %) 9.0 9.0 – business sold 229,530 257,100 (10.7)
Change in risk adjustment for New business CSM margin (%) 10.3 10.6 -0.2 pps
non-financial risk 3,438 3,025 13.7
Expected interest growth 11,802 12,445 (5.2)
Opening risk adjustment 157,162 142,249 10.5
Changes in estimates that
Risk adjustment release rate adjust CSM(1) 1,472 (7,840) N/A
(annualized, %) 4.4 4.3 0.1 pps
Changes in financial risks of
Operating variances and insurance contracts subject
others 7,079 6,425 10.2 to the VFA 5,478 5,713 (4.1)
Investment service result (1)
15,085 13,460 12.1 CSM release base 810,928 856,159 (5.3)
Operating profit before tax 62,132 61,575 0.9 Release of CSM (36,529) (38,665) (5.5)
Income tax (5,831) (6,012) (3.0) Closing CSM 774,399 817,494 (5.3)
Operating profit 56,301 55,564 1.3 Notes: (1) Excluding changes in financial risks of insurance
contracts subject to the VFA.
Short-term investment variance (4,078) (9,229) (55.8) (2) Figures may not match the calculation due to rounding.
Impact of one-off material non-
operating items and others – – N/A

Net profit 52,224 46,335 12.7

Notes: (1) Investment service result is the operating investment
income less the required return on reserves.
(2) Figures may not match the calculation due to rounding.

SOLVENCY MARGIN
Solvency margin ratios of Ping An Life, Ping An Annuity, and Ping An Health Insurance were all significantly
above the regulatory requirements as of June 30, 2024.

Ping An Life Ping An Annuity Ping An Health Insurance

June 30, December 31, June 30, December 31, June 30, December 31,
(in RMB million) 2024 2023 2024 2023 2024 2023

Core capital 495,009 415,458 11,453 9,509 8,928 7,829

Actual capital 836,420 770,771 16,247 14,368 10,666 9,631
Minimum capital 400,591 395,780 5,436 5,436 3,329 3,147

Core solvency margin ratio (%) 123.6 105.0 210.7 174.9 268.2 248.8
Comprehensive solvency margin ratio (%) 208.8 194.7 298.9 264.3 320.4 306.1
Notes: (1) Core solvency margin ratio = core capital / minimum capital. Comprehensive solvency margin ratio = actual capital / minimum
capital.
(2) The minimum regulatory requirements for the core solvency margin ratio and comprehensive solvency margin ratio are 50%
and 100% respectively.
(3) For details of subsidiaries’ solvency margin, please visit the Company’s website (www.pingan.cn).
(4) Figures may not match the calculation due to rounding.

Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd. 19

 Business Analysis
Life and Health Insurance Business

INSURANCE REVENUE AND INSURANCE SERVICE WRITTEN PREMIUM

EXPENSES Written premium refers to all premium received
Insurance revenue will be recognized over the from insurance policies issued. Life & Health’s
coverage period based on the provision of services, written premium amounted to RMB387,766 million in
exclusive of the investment component (an amount the first half of 2024.
that an insurance contract requires the insurer
to repay to a policyholder in all circumstances, Life & Health’s written premium is analyzed below
regardless of whether an insured event occurs). by policyholder type and channel:

For the six months ended June 30 For the six months ended June 30
(in RMB million) 2024 2023 (in RMB million) 2024 2023

Insurance revenue 112,856 113,611 Retail business 375,258 367,292

Premium allocation approach New business 117,760 126,365
( “PAA” ) 14,002 14,582 Agent channel 94,581 101,072
Non-PAA 98,854 99,029 Including: Regular premium 56,993 59,180
Note: PAA insurance products mainly include insurance contracts Bancassurance channel 13,096 15,419
with coverage periods of one year or less; non-PAA
insurance products mainly include insurance contracts
Including: Regular premium 6,817 9,743
of long-term traditional, participating, universal, and Community Grid, tele and
investment-linked insurance. others 10,083 9,874
Including: Regular premium 1,764 2,314
Insurance service expenses comprise incurred claims
Renewed business 257,498 240,927
and other insurance service costs, exclusive of the
Agent channel 229,132 218,155
investment component.
Bancassurance channel 17,153 11,424
For the six months ended June 30 Community Grid, tele and
(in RMB million) 2024 2023 others 11,213 11,348
Insurance service expenses 65,289 65,491 Group business 12,508 12,626
PAA 11,704 12,363 New business 12,383 12,499
Non-PAA 53,585 53,128 Renewed business 125 127

Total 387,766 379,918

INSURANCE CONTRACT LIABILITIES

June 30, December 31,

(in RMB million) 2024 2023

Insurance contract liabilities 4,327,450 3,899,625

PAA 23,003 21,404
Non-PAA 4,304,447 3,878,221

20 Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd.

Life & Health’s written premium is analyzed below Life & Health’s written premium is analyzed below
by product type: by major region:

For the six months ended June 30 For the six months ended June 30
(in RMB million) 2024 2023 (in RMB million) 2024 2023

MANAGEMENT DISCUSSION AND ANALYSIS

Participating insurance 35,420 33,601 Guangdong 66,652 64,424
Universal insurance 72,531 80,701 Beijing 27,284 26,550
Traditional life insurance 125,009 96,633 Shandong 24,362 23,636
Long-term health insurance 57,161 58,595 Jiangsu 24,239 22,820
Accident & short-term health Zhejiang 24,156 22,325
insurance 23,598 23,965
Subtotal 166,693 159,755
Annuity 73,897 86,252
Investment-linked insurance 150 171 Total 387,766 379,918

Total 387,766 379,918

LAPSE RATE
For the six months ended June 30 2024 2023 Change

Lapse rate (%) 1.00 1.13 -0.13 pps

Note: Lapse rate is calculated according to the Accounting
Standards for Business Enterprises No. 25 – Insurance
Contracts issued by the Ministry of Finance in 2006. Lapse
rate = surrender /(opening balance of life insurance reserve
+ opening balance of long-term health insurance reserve +
long-term insurance premium income).

Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd. 21

 Business Analysis
Property and Casualty Insurance Business

Ping An P&C grew its insurance revenue by 3.9% year on year and
improved its overall COR by 0.2 pps to 97.8% in the first half of 2024.
As a one-stop service platform for auto owners, Ping An P&C’s “Ping An
Auto Owner” app accumulated as many as over 218 million registered
users as of June 30, 2024, with over 142 million vehicles linked to it. Monthly
active users of the app exceeded 37.88 million in June 2024.
Ping An P&C offers leading online claims services. Ping An P&C scored 90.87
in the Auto Insurance Service Quality Index evaluation by CBIT, ranking
among top players in the property and casualty insurance industry.

BUSINESS OVERVIEW Ping An P&C continuously improved claims services

The Company conducts property and casualty and comprehensively upgraded basic services to
insurance business mainly through Ping An P&C meet customer needs under the “worry-free,
whose business scope covers all lawful property time-saving, and money-saving” value proposition.
and casualty insurance business lines including auto, Ping An P&C further improved customers’ claims
corporate property and casualty, engineering, hull, experience by launching “Hassle-free Repair and
cargo, liability, guarantee, credit, special risk, home Worry-free Claims” services featuring “hassle-free
contents, and accident & health insurance, as well as auto repair, whole-process transparency, and
international reinsurance business. concierge-style services.” With excellent customer
services, Ping An P&C scored 90.87 in the Auto
Ping An P&C maintained stable business growth, Insurance Service Quality Index evaluation(1) by
with insurance revenue up 3.9% year on year to CBIT, ranking among top players in the property
RMB161,910 million in the first half of 2024. Ping An and casualty insurance industry.
P&C’s overall COR improved by 0.2 pps year on
year to 97.8% in the first half of 2024 mainly due to Note: (1) From the Auto Insurance Service Quality Index
evaluation results released by China Banking and
a decrease in underwriting loss from guarantee Insurance Information Technology Management Co.,
insurance business. Auto insurance COR rose by Ltd. (“CBIT”) in April 2024.
1.0 pps year on year to 98.1% mainly due to a year-
on-year increase in natural disasters including
rainstorms. Ping An P&C applies technologies
to data-driven online operations and services.
The “Ping An Auto Owner” app is committed
to providing one-stop services covering “auto
insurance, auto services and auto life,” offering
82 service items including emergency assistance,
annual inspection and designated driver services by
integrating over 260,000 partners in the ecosystem.
The “Ping An Auto Owner” app had over 218 million
registered users as of June 30, 2024, with over 142
million vehicles linked to it. Monthly active users of
the app exceeded 37.88 million in June 2024.

22 Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd.

Key Indicators Analysis of Profit Sources
For the six months ended June 30 For the six months ended June 30
(in RMB million) 2024 2023 Change (%) (in RMB million) 2024 2023 Change (%)

Operating profit 9,954 9,285 7.2 Insurance revenue 161,910 155,899 3.9

MANAGEMENT DISCUSSION AND ANALYSIS

Operating ROE Insurance service
(annualized, %) 15.2 15.2 – expenses (153,557) (148,330) 3.5
COR(1) (%) 97.8 98.0 -0.2 pps Net expense from
Including: reinsurance contracts
held(1) (1,657) (1,768) (6.3)
Combined expense
ratio(2) (%) 27.2 27.4 -0.2 pps Net insurance financial
result and others(2) (3,164) (2,748) 15.1
Combined loss
ratio(3) (%) 70.6 70.6 – Underwriting profit 3,532 3,053 15.7
Insurance revenue 161,910 155,899 3.9 COR (%) 97.8 98.0 -0.2 pps
Including: Total investment income(3) 8,586 8,044 6.7
Auto insurance 108,390 102,275 6.0 Other net revenue and
expenses (329) (453) (27.4)
Non-auto insurance 41,399 42,723 (3.1)
Accident and health Profit before tax 11,789 10,644 10.8
insurance 12,121 10,901 11.2 Income tax (1,835) (1,359) 35.0
Notes: (1) COR = (insurance service expenses + (allocation
of reinsurance premiums paid – amount recovered Net profit 9,954 9,285 7.2
from reinsurer) + (net insurance finance expenses for
insurance contracts issued – net reinsurance finance Operating profit 9,954 9,285 7.2
income for reinsurance contracts held) + changes in
insurance premium reserves)/insurance revenue. Notes: (1) Net expense from reinsurance contracts held =
(2) Combined expense ratio = (acquisition cost allocation of reinsurance premiums paid – amount
amortization + maintenance expenses)/insurance recovered from reinsurer.
revenue. (2) Net insurance financial result and others = net insurance
(3) Combined loss ratio = (settled loss + outstanding finance expenses for insurance contracts issued – net
loss + profit or loss of loss contracts + (allocation reinsurance finance income for reinsurance contracts
of reinsurance premiums paid – amount recovered held + changes in insurance premium reserves.
from reinsurer) + (net insurance finance expenses for (3) Total investment income includes interest revenue
insurance contracts issued – net reinsurance finance from non-banking operations, investment income,
income for reinsurance contracts held) + changes in share of profits and losses of associates and joint
insurance premium reserves)/insurance revenue. ventures, impairment losses on investment assets, and
interest expenses on assets sold under agreements
to repurchase and placements from banks and other
2021-2023 financial institutions.
(%) 1H 2024 average

COR 97.8 99.4

Combined loss ratio (1) 70.6 69.9
Note: (1) Combined loss ratio for the first half of 2024 is above
the average for 2021-2023 due to frequent blizzards and
rainstorms as well as increasing auto insurance claims
driven by generally recovering customer travels in the
first half of 2024.

Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd. 23

 Business Analysis
Property and Casualty Insurance Business

OPERATING DATA BY PRODUCT TYPE Health Insurance

Auto Insurance Ping An P&C thoroughly implements the “Healthy
Ping An P&C actively refines operations and China” strategy and actively develops health
continuously improves its sales and customer insurance, giving full play to health insurance’s role
service capabilities. Overall operations are steady as a complement to China’s multi-layered medical
and healthy in good order. Auto insurance premium security system. Health insurance premium income
income rose 3.4% year on year to RMB104,824 grew 43.5% year on year to RMB10,090 million in the
million and vehicles insured increased 5.9% year first half of 2024. Health insurance COR remained
on year in the first half of 2024. Moreover, Ping good at 95.9%. Under a “health-centered” customer
An P&C continuously improves its auto insurance development approach, Ping An P&C continuously
profitability by actively promoting risk reduction identifies needs of customer segments of different
and building an exclusive framework for pricing, age ranges, regions and health status, and develops
services and claims for new energy vehicles. Auto various insurance products and services to meet
insurance COR was 98.1% in the first half of 2024. customers’ multilevel risk protection needs and
Going forward, Ping An P&C will strengthen core diverse health management needs.
technologies in new auto insurance segments
including autonomous driving and usage-based Agricultural Insurance
insurance, and innovate products and services to Ping An P&C’s agricultural insurance premium
meet diverse customer needs and drive the high- income climbed 32.9% year on year to RMB7,349
quality development of auto insurance business. million in the first half of 2024, with a 95.9%
agricultural insurance COR. Ping An P&C
Liability Insurance continuously expands and enhances insurance
Liability insurance premium income declined 0.3% coverages for staple grains to safeguard national
year on year to RMB14,179 million in the first half of grain production. Moreover, Ping An P&C utilizes
2024. Liability insurance COR improved by 1.5 pps technologies proactively. In intelligent operations,
year on year to 98.0% in the first half of 2024 and Ping An P&C protects farmers’ interests by piloting
overall business risk was under control. Ping An precise underwriting and claim settlement of
P&C continuously improved the accuracy of its risk agricultural insurance with technologies including
pricing model, and further expanded the model’s remote sensing and meteorological detection. In
scope of use. Regarding its underwriting capability, service innovation, Ping An P&C improves farmers’
Ping An P&C improved its underwriting services satisfaction with its services by enabling functions
by realizing 100% online middle-office support for including self-service payment and self-service
liability insurance, centering on end-to-end business claims as well as shortening underwriting and claim
processes and requirements of customers and sales settlement cycles on the “Ai Nong Bao” online
teams. platform.

24 Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd.

Corporate Property and Casualty Insurance Guarantee Insurance
Ping An P&C’s premium income from corporate Guarantee insurance COR improved by 10.9 pps year
property and casualty insurance business reached on year to 106.8% in the first half of 2024. Ping An
RMB6,202 million in the first half of 2024, up 7.6% year P&C has continuously reduced the size of guarantee
on year. COR of corporate property and casualty insurance business in recent years, and suspended

MANAGEMENT DISCUSSION AND ANALYSIS

insurance business remained good at 94.7%. Going selling new financing guarantee insurance
forward, Ping An P&C will continue to make efforts policies in the fourth quarter of 2023. The balance
to serve national development strategies, the real of outstanding guarantee insurance liabilities
economy, and people’s livelihoods. Firstly, Ping An decreased continuously and the risk exposure was
P&C will serve national strategies by developing reduced rapidly in the first half of 2024. Underwriting
TechFin, green finance, inclusive finance, pension loss and impact on Ping An P&C’s overall business
finance and digital finance as well as increasing quality have decreased significantly year on year
support for strategic emerging industries including due to the gradual recovery of claims under existing
semiconductors and new energy. Secondly, Ping insurance policies.
An P&C will serve the real economy and people’s
livelihoods by improving risk reduction services,
fulfilling its corporate social responsibilities, and
safeguarding enterprises’ high-quality development.

Insurance Net insurance

For the six months ended June 30, 2024 Insured Premium Insurance service Underwriting contract
(in RMB million) amount income revenue expenses profit COR liabilities

Auto insurance 152,351,860 104,824 108,390 104,154 2,045 98.1% 186,849

Liability insurance 379,187,750 14,179 12,209 11,362 250 98.0% 24,071
Health insurance 102,040,544 10,090 6,821 6,464 277 95.9% 8,711
Agricultural insurance 262,016 7,349 3,763 3,368 155 95.9% 1,414
Corporate property and
casualty insurance 13,207,240 6,202 4,839 3,793 255 94.7% 7,566
Guarantee insurance 20,620 (1,814) 8,051 8,459 (550) 106.8% 6,215
Note: Net insurance contract liabilities = insurance contract liabilities – insurance contract assets.

Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd. 25

 Business Analysis
Property and Casualty Insurance Business

SOLVENCY MARGIN Ping An P&C’s premium income is analyzed below

Ping An P&C’s core and comprehensive solvency by product type:
margin ratios were significantly above the
regulatory requirements as of June 30, 2024. For the six months 2024 2023
ended June 30 Percentage Percentage
(in RMB million) Amount (%) Amount (%)
June 30, December 31,
(in RMB million) 2024 2023
Auto insurance 104,824 65.4 101,348 65.8
Core capital 113,149 102,875 Non-auto insurance 39,717 24.8 40,640 26.4
Actual capital 127,556 126,230 Accident and health
Minimum capital 62,208 60,734 insurance 15,856 9.8 12,148 7.8

Core solvency margin Total 160,397 100.0 154,136 100.0

ratio (%) 181.9 169.4 Note: Figures may not match the calculation due to rounding.
Comprehensive solvency
margin ratio (%) 205.0 207.8 Ping An P&C’s premium income is analyzed below
Notes: (1) Core solvency margin ratio = core capital / minimum by major region:
capital. Comprehensive solvency margin ratio = actual
capital / minimum capital. For the six months ended June 30
(2) The regulatory minimum requirements for the core (in RMB million) 2024 2023
solvency margin ratio and comprehensive solvency
margin ratio are 50% and 100% respectively.
(3) For details of Ping An P&C’s solvency margin, please Guangdong 27,421 25,556
refer to the Company’s website (www.pingan.cn). Jiangsu 11,420 11,951
Zhejiang 11,239 10,180
PREMIUM INCOME Shanghai 9,618 9,120
Ping An P&C’s premium income is analyzed below
Sichuan 8,880 8,520
by channel:
Subtotal 68,578 65,327
For the six months 2024 2023
ended June 30 Percentage Percentage Total 160,397 154,136
(in RMB million) Amount (%) Amount (%)
Note: Premium income refers to premiums computed based on
written premium after the significant insurance risk testing
Agencies 49,730 31.0 44,726 29.0
and separation of hybrid contracts in accordance with the
Car dealers 44,052 27.5 41,748 27.1 Circular on the Insurance Industry’s Implementation of the
No.2 Interpretation of Accounting Standards for Business
Direct selling 30,154 18.8 29,468 19.1 Enterprises (Bao Jian Fa [2009] No.1) and the Circular on
Cross-selling 18,206 11.4 19,648 12.7 Issuing the Regulations regarding the Accounting Treatment
of Insurance Contracts (Cai Kuai [2009] No.15).
Telemarketing and
online channels 101 0.1 3,392 2.2
Others 18,154 11.2 15,154 9.9

Total 160,397 100.0 154,136 100.0

Note: Figures may not match the calculation due to rounding.

26 Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd.

REINSURANCE ARRANGEMENTS INSURANCE CONTRACT LIABILITIES
Ping An P&C adheres to a prudent approach to June 30, December 31,
(in RMB million) 2024 2023
its reinsurance business to scale up underwriting
capabilities, diversify business risks, and ensure Insurance contract liabilities 263,209 261,153
healthy business growth and stable operating

MANAGEMENT DISCUSSION AND ANALYSIS

PAA 249,825 244,892
results. Ping An P&C maintains close long-standing Non-PAA 13,384 16,261
relationships with the world’s major reinsurance
brokers and reinsurers, actively sharing business
experience and empowering reinsurance with
technologies. Currently, Ping An P&C conducts
reinsurance business with nearly 100 reinsurers and
reinsurance brokers worldwide, including China
Property & Casualty Re, Swiss Re, SCOR, and
Munich Re.

For the six months ended June 30

(in RMB million) 2024 2023

Premiums ceded to reinsurers 11,221 10,182

Auto insurance 2,811 2,539
Non-auto insurance 8,366 7,587
Accident and health
insurance 44 56

Inward reinsurance premium 37 1

Auto insurance 1 –
Non-auto insurance 36 1
Note: Premiums ceded to reinsurers and inward reinsurance
premium are premium data from the measurement of
reinsurance arrangements in accordance with the Circular
on the Insurance Industry’s Implementation of the No.2
Interpretation of Accounting Standards for Business
Enterprises (Bao Jian Fa [2009] No.1) and the Circular on
Issuing the Regulations regarding the Accounting Treatment
of Insurance Contracts (Cai Kuai [2009] No.15).

Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd. 27

 Business Analysis
Insurance Funds Investment Portfolio

The Company’s insurance funds investment portfolio grew 10.2% year to

date to over RMB5.20 trillion as of June 30, 2024.
The Company upheld a balanced and prudent approach to its insurance
funds investment portfolio under the guidance of long-term strategic
asset allocation in the first half of 2024. Via active and disciplined
tactical operations, the portfolio achieved an annualized comprehensive
investment yield of 4.2% in the first half of 2024, up by 0.1 pps year on year.

INVESTMENT PORTFOLIO OVERVIEW opportunities in equity markets, the Company

The Company’s insurance funds investment portfolio carries out disciplined tactical asset allocation,
is comprised of investable funds from Life & Health diversifies investment risks, and selects excellent
and property and casualty insurance businesses. managers and high-quality assets to cope with
The Company’s insurance funds investment portfolio various market environments.
grew 10.2% year to date to over RMB5.20 trillion as of
June 30, 2024. In fixed income investment, the Company
proactively responds to the risk of falling interest
China’s economy recovery continued in the first rates. The Company lengthened asset durations and
half of 2024 as economic structure continuously locked in long-term returns by increasing allocation
improved, GDP growth met expectations, fixed to long-duration low-risk bonds including central
asset investment and import and export grew well, and local government bonds and policy bank bonds
and new quality productive forces were becoming at a faster pace. Moreover, the Company seized
key drivers of economic growth at an increasing market opportunities to boost investment returns by
pace. However, China’s economic development still increasing allocation to fixed income assets held for
faces challenges including significantly increasing trading.
complexity and severity of the external environment.
The Company adheres to the philosophy of value In equity investment, the Company actively serves
investing through cycles. The Company’s insurance the real economy and increases long-term allocation
funds investment portfolio achieved an annualized to value-based equity assets under the portfolio
comprehensive investment yield of 4.2%, up by 0.1 management principles of balanced allocation and
pps year on year, and an annualized net investment risk diversification. In this way, the Company seeks
yield of 3.3%, down by 0.2 pps year on year in the to outperform the market with robust long-term
first half of 2024. investment returns.

ASSET-LIABILITY MANAGEMENT In addition, the Company diversifies the sources of

The Company is committed to creating stable assets and incomes by proactively investing in high-
investment incomes through macroeconomic cycles quality alternative assets and optimizing allocation
and meeting liability needs under a liability-driven to high-quality overseas assets.
approach, taking solvency as a core metric.
The Company continuously strengthens its
At the asset allocation level, the Company keeps a investment research, product innovation and
prudent risk appetite and continuously optimizes post-investment management, and ensures its
its 10-year strategic asset allocation through investment management covers the whole process
macroeconomic cycles. The Company strikes a two- of “fundraising, investing, management and exit” to
dimensional balance between long-duration interest facilitate rapid identification, reporting, mitigation
rate bonds and risk assets as well as between robust and disposal of investment risks and maximize the
equity assets and growth equity assets. Moreover, value of its investments.
by identifying trends of interest rates and structural

28 Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd.

INVESTMENT PORTFOLIO (BY CATEGORY)

June 30, 2024 December 31, 2023

(in RMB million) Carrying value Percentage (%) Carrying value Percentage (%)

MANAGEMENT DISCUSSION AND ANALYSIS

Cash and cash equivalents 148,712 2.9 121,613 2.6
Term deposits 221,949 4.3 206,076 4.4
Debt financial assets
Bond investments 3,156,258 60.7 2,743,086 58.1
Bond funds 120,618 2.3 107,169 2.3
Preferred stocks 115,607 2.2 113,991 2.4
Perpetual bonds 78,899 1.5 50,388 1.1
Debt schemes 187,184 3.6 189,349 4.0
Wealth management products(1) 197,163 3.8 227,461 4.8
Equity financial assets
Stocks 331,930 6.4 292,109 6.2
Equity funds 110,584 2.1 144,340 3.1
Wealth management products(1) 58,612 1.1 68,399 1.4
Unlisted equities 115,228 2.2 106,840 2.3
Long-term equity stakes 208,328 4.0 205,281 4.3
Investment properties 132,480 2.5 128,059 2.7
Other investments(2) 19,699 0.4 18,067 0.3

Total investments 5,203,251 100.0 4,722,228 100.0

Notes: (1) Wealth management products include trust plans from trust companies, products from insurance asset management
companies, and wealth management products from commercial banks.
(2) Other investments mainly include statutory deposits for insurance operations, three-month or longer-term financial assets
purchased under reverse repurchase agreements, and derivative financial assets.
(3) Total investments exclude assets of investment-linked insurance.
(4) Figures may not match the calculation due to rounding.

INVESTMENT PORTFOLIO (BY ACCOUNTING MEASUREMENT)

June 30, 2024 December 31, 2023
(in RMB million) Carrying value Percentage (%) Carrying value Percentage (%)

Financial assets at fair value through profit

or loss 1,291,200 24.8 1,114,074 23.6
Fixed income 880,849 16.9 676,958 14.3
Stocks 125,895 2.4 117,012 2.5
Equity funds 110,584 2.1 144,340 3.1
Other equity financial assets 173,872 3.4 175,764 3.7
Financial assets at fair value through other
comprehensive income 2,902,840 55.8 2,645,104 56.0
Fixed income 2,695,825 51.8 2,469,121 52.3
Stocks 206,035 4.0 175,097 3.7
Other equity financial assets 980 – 886 –
Financial assets at amortized cost 667,231 12.8 629,160 13.3
Others(1) 341,980 6.6 333,890 7.1

Total investments 5,203,251 100.0 4,722,228 100.0

Notes: (1) Others include long-term equity stakes, investment properties, and derivative financial assets.
(2) Total investments exclude assets of investment-linked insurance.
(3) Figures may not match the calculation due to rounding.

Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd. 29

 Business Analysis
Insurance Funds Investment Portfolio

INVESTMENT INCOME
The Company’s insurance funds investment portfolio achieved an annualized comprehensive investment
yield of 4.2% in the first half of 2024, up by 0.1 pps year on year mainly due to a balanced asset allocation
strategy and a year-on-year improvement in the performance of equity assets. Annualized net investment
yield declined by 0.2 pps year on year to 3.3% mainly because existing assets matured partially and yields to
maturity on newly added fixed income assets were lower.

For the six months ended June 30

(in RMB million) 2024 2023 Change (%)

Net investment income(1) 88,273 85,217 3.6

Net realized and unrealized gains(2) 10,577 (4,454) N/A
Impairment losses on investment assets (867) (1,124) (22.9)

Total investment income 97,983 79,639 23.0

Comprehensive investment income(3) 126,724 109,086 16.2

Net investment yield(4) (annualized, %) 3.3 3.5 –0.2 pps

Total investment yield(4) (annualized, %) 3.5 3.4 0.1 pps
Comprehensive investment yield(4) (annualized, %) 4.2 4.1 0.1 pps

Average investment yields on the Company’s insurance funds investment portfolio are as below:

2021－2023 2014－2023

Average net investment yield (%) 4.5 5.2

Average total investment yield (%) 3.1 5.0
Average comprehensive investment yield (%) 3.4 5.4

Life & Health’s and property and casualty insurance business’s annualized investment yields in the first half
of 2024 are as below:

For the six months ended June 30 2024 2023 Change (%)

Life & Health

Net investment yield(4) (annualized, %) 3.4 3.5 –0.1 pps
Total investment yield(4) (annualized, %) 3.6 3.4 0.2 pps
Comprehensive investment yield(4) (annualized, %) 4.3 4.1 0.2 pps

Ping An P&C
Net investment yield(4) (annualized, %) 3.0 3.6 –0.6 pps
Total investment yield(4) (annualized, %) 3.3 3.4 –0.1 pps
Comprehensive investment yield(4) (annualized, %) 3.4 3.5 –0.1 pps
Notes: (1) Net investment income includes interest income from deposits and debt financial assets, dividend income from equity financial
assets, operating lease income from investment properties, and the share of profits and losses of associates and joint ventures.
(2) Net realized and unrealized gains include capital gains on securities investments and fair value gains or losses.
(3) Comprehensive investment income excludes a fair value change of RMB151,010 million in debt investments at fair value through
other comprehensive income backing Life & Health business in the first half of 2024.
(4) Average investment assets used as the denominator are computed in line with principles of the Modified Dietz method. In the
computation of annualized investment yields, only interest revenue from deposits and debt financial assets, and operating
lease income from investment properties are annualized, while interest revenue from financial assets purchased under
reverse repurchase agreements, interest expenses on assets sold under agreements to repurchase and placements from
banks and other financial institutions, dividend income, capital gains on investments, and fair value gains or losses are not
annualized. Computation of investment yields excludes changes in fair values of debt investments at fair value through other
comprehensive income backing Life & Health business.

30 Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd.

CORPORATE BONDS
The Company held RMB107,534 million worth of corporate bonds in its insurance funds investment portfolio
as of June 30, 2024, which accounted for 2.1% of the total investment assets, up by 0.4 pps year to date and
unchanged from the beginning of 2023. Corporate bond portfolio enjoys high credit ratings with about 99.5%
rated AA or higher externally and about 62.6% having AAA or higher external ratings. In terms of credit

MANAGEMENT DISCUSSION AND ANALYSIS

loss risk, corporate bonds in the portfolio are secure as their risks are under control. For risk management
of corporate bonds, the Company ensures end-to-end assessment and management of investment
risks through asset allocation, admittance management, and dynamic review. The Company established
an internal credit rating team in 2003. Since then, the team has conducted admittance management of
corporate bond investments in strict accordance with internal credit ratings, and enhanced the review
and adjustment of ratings to ensure they reasonably reflect bond issuers’ credit standings. Moreover,
the Company carries out ex ante monitoring of potential risks in corporate bonds on the basis of a bond
issuer list, and has put in place a rapid response mechanism that deals with public sentiment warnings. The
Company effectively manages the review and reporting of corporate bonds to enhance the efficiency of
risk warning and management.

DEBT SCHEMES AND DEBT WEALTH MANAGEMENT PRODUCTS

Debt schemes and debt wealth management products include debt investment schemes undertaken by
insurance asset management companies, debt trust plans issued by trust companies, and debt wealth
management products issued by commercial banks. Debt schemes and debt wealth management products
in the Company’s insurance funds investment portfolio totaled RMB384,347 million as of June 30, 2024,
accounting for 7.4% of the portfolio, down by 1.4 pps year to date.

The Company manages risks in debt schemes and debt wealth management product investments at
three levels. The first level is asset allocation. The Company has developed a set of rational, effective
asset allocation models. While keeping overall risks within the risk appetite, the Company formulates a
strategic asset allocation plan for each account, and sets upper and lower limits on the proportions of asset
allocation. In tactical asset allocation, the Company gives opinions on capital allocation to debt schemes
and debt wealth management products according to the funding level in each account, the required return
and liquidity, and similar assets’ relative attractiveness. The second level is internal credit risk management.
The Company has established a comprehensive credit analysis methodology, an excellent internal credit
analysis team, and a robust investment admittance management process. All investment instruments must
meet the conditions for admittance specified by the Company’s internal credit rating team, and must be
approved by a relevant committee. The third level is post-investment management. The Company ensures
adequate assessment and dynamic management of risks in investment assets by closely monitoring
investments and strictly conducting rapid risk identification, reporting, mitigation and disposal.

Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd. 31

 Business Analysis
Insurance Funds Investment Portfolio

Structure and Yield Distribution of Debt Schemes and Debt Wealth Management Products
Investment Nominal yield Remaining
Industry proportion (%) (%) maturity (year)

Infrastructure 61.5 4.59 4.01

Expressway 10.1 4.67 2.92
Electric power 7.4 4.67 4.66
Infrastructure and development zones 20.7 4.56 5.02
Others (water supply, environmental protection,
railway, and so on) 23.3 4.55 3.40
Non-banking financial services(2) 13.9 4.93 2.12
Real estate industry(3) 12.6 4.70 2.54
Others 12.0 4.36 2.90

Total 100.0 4.62 3.43

Notes: (1) Debt schemes and debt wealth management products are classified by industry in line with Shenyin Wanguo’s industry
classification.
(2) Non-banking financial services refer to financial institutions other than banks, including insurers, asset management companies,
and financial leasing companies.
(3) The real estate industry is broadly defined as comprising: real estate financial products with funds directly invested in real
estate projects; and trust schemes, infrastructure investment schemes, project funding schemes, and so on with funds used
indirectly in connection with real estate enterprises.
(4) Some industries have been grouped into “others” as they account for small proportions.
(5) Figures may not match the calculation due to rounding.

The Company pays close attention to credit risk in the market, ensuring the overall risks of debt schemes
and debt wealth management products held by Ping An in its insurance funds investment portfolio are
under control. Debt schemes and debt wealth management products in the Company’s insurance funds
investment portfolio have good credit ratings. Over 96.4% of the debt schemes and trust schemes held by
Ping An have AAA external ratings, and about 0.9% of them have AA+ external ratings. Aside from some
high-credit entities which do not need credit enhancement for financing, the vast majority of the assets
held by the Company have guarantees or collateral. In terms of industry and geographic distribution, Ping
An proactively avoids high-risk industries and regions. Ping An’s target assets are diversified, mainly in the
non-banking financial services industry, the expressway industry and so on in economically developed and
coastal areas including Beijing, Shanghai and Guangdong.

32 Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd.

EQUITY WEALTH MANAGEMENT PRODUCTS
Equity wealth management products in the Company’s insurance funds investment portfolio totaled
RMB58,612 million as of June 30, 2024, accounting for 1.1% of the portfolio. The vast majority of equity wealth
management products held by Ping An are from insurance asset managers. These products’ underlying
assets are mainly tradable shares of domestic and foreign high-quality companies in the secondary market,

MANAGEMENT DISCUSSION AND ANALYSIS

indicating no significant liquidity risk. Private equity funds account for a small proportion, and their
underlying assets are mainly equities in central or local governments’ partnerships, with risks under control.

REAL ESTATE INVESTMENTS

The balance of real estate investments in the Company’s insurance funds investment portfolio was
RMB207,425 million as of June 30, 2024, accounting for 4.0% of the portfolio. The real estate investments are
mainly in real properties (including developer-owned real properties invested in directly or in the form of
equity stakes in project companies) measured at cost, which represent 79.1% of real estate investments.
Such investments were made primarily in rent-collecting properties including commercial and office
properties, logistics real estate, industrial parks, and long-term rental apartments, to match the duration
of liabilities. Such investments generate relatively stable incomes including rents and dividends as well as
capital appreciation. Besides, debt investments and other equity investments account for 16.9% and 4.0% of
real estate investments respectively.

INVESTMENT RISK MANAGEMENT

The Company attaches great importance to risk management in matching costs and returns, and has
established a risk appetite framework in which the matching of costs and returns is a key quantitative
indicator. The Company conducts regular reviews and strict stress tests which are embedded in the asset
allocation process with ex ante risk management. In the event of increased market volatility, the Company
will carry out intensified and more frequent stress tests to ensure the security of the portfolio even under
extreme market impacts.

The Company has further strengthened investment rules and processes. To continuously optimize end-to-
end risk management, the Company has standardized its business processes, improved its investment risk
management framework, and enhanced key processes including risk admittance strategies, credit rating,
counterparty and issuer credit facility management, concentration management, risk monitoring, and
emergency management. Moreover, the Company employs technologies to empower the management of
key post-investment matters and constantly optimizes its risk warning platform. Based on consolidated
statements of investment portfolios, the Company monitors comprehensive risk signals covering market
fluctuations, public sentiment, financial changes and so on, and closely watches forward-looking indicators
automatically generated by systems. By using smart analytics models, the Company conducts rapid risk
identification, reporting, mitigation and disposal.

The Company further strengthens substantive risk management in addition to meeting regulatory
requirements concerning investment concentration. The Company improves policies and procedures for the
management of investment concentration in a prudent, comprehensive, dynamic, and independent manner.
The Company optimizes the Group’s and its member companies’ investment concentration limits. Moreover,
the Company enhances the setting, using, warning, and adjustment mechanisms of credit limits for major
clients and the monitoring and management of key sectors and risk areas. In this way, the Company
prevents the risk of investment overconcentration in certain counterparty(ies), sector(s), region(s), and
asset class(es) to avoid potential indirect threats to the Company’s solvency, liquidity, profitability or
reputation.

The Company keeps a close eye on the market credit conditions, and strengthens research and forward-
looking analysis on credit risk. The Company constantly upgrades its risk monitoring framework and risk
management information system, and improves its risk management databases. In this way, the Company
ensures systematic management of risks in asset-liability matching and investment portfolios.

Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd. 33

 Business Analysis
Banking Business

Ping An Bank maintained steady business performance. Net profit grew

1.9% year on year to RMB25,879 million in the first half of 2024. Core tier 1
capital adequacy ratio increased to 9.33% as of June 30, 2024.
Ping An Bank continuously strengthened risk management, and
maintained adequate risk provisions. Non-performing loan ratio and
provision coverage ratio were 1.07% and 264.26% respectively as of June 30,
2024.
Ping An Bank promoted the high-quality sustainable development of its
retail business. Retail assets under management (“AUM”) rose 2.2% year to
date to RMB4,120,630 million, and retail deposit balance grew 6.9% year to
date to RMB1,290,345 million as of June 30, 2024.

BUSINESS OVERVIEW Key Indicators

Ping An Bank adheres to its mission to be “China’s Ping An Bank’s revenue totaled RMB77,132 million
most outstanding, world-leading smart retail in the first half of 2024, down 13.0% year on year
bank” under the strategy of “strong retail banking, mainly due to ongoing support for the real economy
selective corporate banking, and specialized and the adjusted asset portfolio. Ping An Bank
interbank business.” Ping An Bank continuously improved operational cost-effectiveness via digital
upgrades its retail, corporate and interbank business transformation, strengthened asset quality control
strategies, enhances its ability to serve the real and management, and enhanced non-performing
economy, strengthens risk management, advances asset recovery and disposal, boosting net profit by
digital transformation, and maintains steady overall 1.9% year on year to RMB25,879 million in the first
business performance. half of 2024.

Ping An Bank (excluding Ping An Wealth For the six months ended June 30
(in RMB million) 2024 2023 Change (%)
Management) had 109 branches and 1,180 business
outlets as of June 30, 2024. Operating results
Revenue 77,132 88,610 (13.0)
Net profit 25,879 25,387 1.9
Cost-to-income ratio (%) 27.37 26.45 0.92 pps
Average return on total
assets (annualized, %) 0.91 0.94 -0.03 pps
Weighted average ROE
(annualized, %) 11.88 12.65 -0.77 pps
Net interest margin
(annualized, %) 1.96 2.55 -0.59 pps

34 Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd.

 June 30, December 31, Analysis of Profit Sources
(in RMB million) 2024 2023 Change For the six months ended June 30
(in RMB million) 2024 2023 Change (%)
Deposits and loans(1)
Net interest revenue 49,086 62,634 (21.6)
Deposits 3,570,812 3,407,295 4.8%

MANAGEMENT DISCUSSION AND ANALYSIS

Average balance of
Including: Retail deposits 1,290,345 1,207,618 6.9% interest-earning assets 5,038,878 4,955,321 1.7
Corporate deposits 2,280,467 2,199,677 3.7% Net interest margin(1)
Total loans and advances 3,413,474 3,407,509 0.2% (annualized, %) 1.96 2.55 -0.59 pps
Including: Retail loans 1,821,335 1,977,719 (7.9%) Net non-interest revenue 28,046 25,976 8.0
Corporate loans 1,592,139 1,429,790 11.4% Including:
Asset quality Net fee and commission
revenue 12,997 16,374 (20.6)
Non-performing loan ratio (%) 1.07 1.06 0.01 pps
Other net non-interest
Provision coverage ratio (%) 264.26 277.63 -13.37 pps
revenue(2) 15,049 9,602 56.7
Deviation of loans more than
60 days overdue(2) 0.79 0.74 0.05 Revenue 77,132 88,610 (13.0)
General and administrative
Capital adequacy ratio
expenses (21,109) (23,438) (9.9)
Core tier 1 capital adequacy
Cost-to-income ratio(3) (%) 27.37 26.45 0.92 pps
ratio(3) (%) 9.33 9.22 0.11 pps
Tax and surcharges (783) (874) (10.4)
Notes: (1) Deposits, total loans and advances, and their
components are exclusive of interest receivable and Operating profit before
payable.
(2) Deviation of loans more than 60 days overdue = balance
impairment losses on
of loans more than 60 days overdue / balance of non- assets 55,240 64,298 (14.1)
performing loans. Impairment losses on credit
(3) The minimum regulatory requirement for the core tier 1
capital adequacy ratio is 7.75%. and other assets (23,153) (32,361) (28.5)
Including:
Loan impairment loss (23,775) (27,663) (14.1)
Average balance of loans
and advances 3,420,025 3,379,434 1.2
Credit cost (4)

(annualized, %) 1.40 1.65 -0.25 pps

Other expenses (110) (4) 2,650.0

Profit before tax 31,977 31,933 0.1

Income tax (6,098) (6,546) (6.8)

Net profit 25,879 25,387 1.9

Notes: (1) Net interest margin = net interest revenue / average
balance of interest-earning assets.
(2) Other net non-interest revenue includes investment
income, foreign exchange gains or losses, other
revenues and other gains or losses less non-operating
gains under the segmented income statement.
(3) Cost-to-income ratio = general and administrative
expenses / revenue.
(4) Credit cost = loan impairment losses / average balance
of loans and advances.

Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd. 35

 Business Analysis
Banking Business

Ping An Bank’s net interest margin narrowed by For the six months ended June 30
0.59 pps year on year to 1.96% in the first half of (in RMB million) 2024 2023 Change (%)
2024. Net interest margin narrowed as Ping An Bank
Retail business operating results
continued to support the real economy and adjusted
the asset portfolio amid falling market interest rates, Revenue from retail business 39,091 52,631 (25.7)
lackluster effective demand for credit loans, and the Proportion of revenue from retail
repricing of loans. business (%) 50.7 59.4 -8.7 pps
Operating profit from retail
Ping An Bank boosted its net non-interest revenue business before impairment
losses on assets 26,644 36,362 (26.7)
by 8.0% year on year to RMB28,046 million in the first
half of 2024 mainly by seizing market opportunities Proportion of operating profit
to increase net non-interest revenues from bond from retail business before
impairment losses on assets (%) 48.2 56.6 -8.4 pps
investment and other businesses. Meanwhile,
net non-interest revenues from credit card and Net profit from retail business 1,804 8,658 (79.2)
bancassurance businesses declined driven by factors Proportion of net profit from retail
including the macroeconomic environment. business (%) 7.0 34.1 -27.1 pps
Note: Revenue and net profit from retail business declined year
RETAIL BUSINESS on year due to Ping An Bank’s ongoing support for the real
economy, adjustment of the asset portfolio, commission
Ping An Bank adheres to its retail business reduction in the bancassurance channel, and continued
strategy and continuously promotes its business retail asset write-offs and provisioning because some
retail customers’ debt repayment capacity remained under
transformation. In response to changes in the pressure.
external environment, Ping An Bank drives high-
quality, sustainable development of retail business • In lending business, Ping An Bank proactively
by adjusting structure, improving quality, increasing rebalanced its loan portfolio by increasing
profitability, and upgrading two main business home mortgage loans, collateral mortgage
sectors. loans and new energy vehicle loans. Moreover,
Ping An Bank upgraded risk management
strategies and optimized risk models to
improve the quality of new assets, striking a
balance between “volumes, prices and risks.”
Retail loan balance decreased 7.9% year to date
to RMB1,821,335 million as of June 30, 2024, in
which the proportion of secured loans rose to
60.6%. Newly-granted retail new energy vehicle
loans grew 38.4% year on year in the first half of
2024.

36 Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd.

• In deposit and wealth management business, CORPORATE BUSINESS
Ping An Bank grew retail deposits and In corporate business, Ping An Bank closely follows
improved the business portfolio by developing national strategies, and continuously increases
core business scenarios such as investment financing support for key areas including the
& wealth management, payroll, and payment manufacturing sector, specialized and sophisticated

MANAGEMENT DISCUSSION AND ANALYSIS

settlement. Retail deposit balance grew enterprises that produce new and unique products,
6.9% year to date to RMB1,290,345 million as non-state-owned enterprises, micro-, small
of June 30, 2024. Moreover, Ping An Bank and medium-sized enterprises (“MSMEs”), rural
improved customer experience by continuously vitalization, green finance, and infrastructure.
upgrading private banking products, services Ping An Bank develops and strengthens strategic
and team capabilities as well as building a customer groups to serve the real economy.
professional, competitive benefit service Corporate loan balance grew 11.4% year to date to
system. Retail AUM rose 2.2% year to date RMB1,592,139 million as of June 30, 2024. Corporate
to RMB4,120,630 million as of June 30, 2024, deposit balance grew 3.7% year to date to
including RMB1,944,879 million in AUM of private RMB2,280,467 million.
banking customers, up 1.5% year to date.
• Selected sectors: Building sector-specific
June 30, December 31, differential advantages, Ping An Bank granted
2024 2023 Change (%)
new loans of RMB200,540 million to four basic
Number of retail customers(1) industries, namely infrastructure, the auto
(in thousand) 126,190.8 125,432.0 0.6 ecosystem, public utilities and real estate in
Including: the first half of 2024, up 42.1% year on year.
Wealth management Meanwhile, Ping An Bank granted new loans of
customers RMB106,142 million to three emerging industries,
(in thousand) 1,424.3 1,377.5 3.4 namely new manufacturing, new energy and
Including: new lifestyle in the first half of 2024, up 47.1%
Private banking year on year.
customers(2)
(in thousand) 93.5 90.2 3.7 • Selected customers: Ping An Bank builds a
Retail AUM (in RMB million) 4,120,630 4,031,177 2.2 tiered development framework for customers
from strategic ones to small and micro-
Notes: (1) Retail customers include debit and credit cardholders,
with duplicates removed. enterprises and develops “long-term”
(2) A qualified private banking customer refers to a operational capabilities. Ping An Bank had 802.7
customer who has over RMB6 million in average daily
assets for any one of the past three months.
thousand corporate customers as of June 30,
2024, up by 48.7 thousand or 6.5% year to date.

• Selected products: Focusing on core customer

groups, Ping An Bank enhances its sector-
specific, differentiated and comprehensive
product portfolio, and develops innovative
business models with its “finance + technology”
strength to offer comprehensive services. Ping
An Bank’s supply chain financing amounted to
RMB725,318 million in the first half of 2024, up
30.6% year on year.

Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd. 37

 Business Analysis
Banking Business

INTERBANK BUSINESS ASSET QUALITY

In interbank business, Ping An Bank continuously China’s macroeconomy kept an upward trend in
develops financial services as a new growth driver the first half of 2024. However, the foundations of
and enhances market competitiveness through an continuous recovery still needed to be consolidated,
“investment trading + customer business” strategy. and repayment capacity of retail customers and
small and medium-sized enterprises remained under
• In respect of investment trading, Ping An Bank pressure. In line with national strategies, Ping An
continuously strengthens macroeconomic Bank actively served the real economy, supported
analysis and enhances the research and non-state-owned enterprises and MSMEs, enhanced
development (“R&D”) of trading strategies to non-performing asset disposal, and kept overall
obtain sustainable, steady investment income asset quality stable.
while ensuring the liquidity and security of
assets. Ping An Bank’s market share measured June 30, December 31,
(in RMB million) 2024 2023 Change (%)
by bond trading volume increased 0.6 pps year
on year to 3.5% in the first half of 2024. Loan quality
Pass 3,314,048 3,311,741 0.1
• In respect of customer business, Ping An Special mention 63,030 59,732 5.5
Bank optimizes financial products and service
Non-performing loans 36,396 36,036 1.0
processes, meets interbank and corporate
customers’ financial service demands, and Total loans and advances 3,413,474 3,407,509 0.2
promotes financial markets’ high-quality Non-performing loan ratio (%) 1.07 1.06 0.01 pps
development by leveraging its strengths Percentage of special
in comprehensive customer services and mention loans (%) 1.85 1.75 0.10 pps
proactively engaging in the fund ecosystem, Provision coverage ratio (%) 264.26 277.63 -13.37 pps
asset custody, bond market making, corporate Provision to loan ratio (%) 2.82 2.94 -0.12 pps
hedging and so on. The AUM balance of
asset management products distributed Percentage of loans more
under the “ET-Bank” climbed 43.8% year to than 60 days overdue (%) 0.84 0.78 0.06 pps
date to RMB287,816 million as of June 30, 2024.
Net assets under custody grew 3.6% year to June 30, December 31,
date to RMB9.01 trillion as of June 30, 2024. (%) 2024 2023 Change
RMB1.67 trillion worth of cash bonds were
Non-performing loan ratios
sold by domestic and foreign institutions in
the first half of 2024, up 9.2% year on year. The Retail loans 1.42 1.37 0.05 pps
number of customers that conducted spot and Corporate loans 0.66 0.63 0.03 pps
derivative foreign exchange hedging at Ping An
Bank increased 12.8% year on year to 11,058 in
the first half of 2024.

38 Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd.

In respect of retail asset quality, Ping An Bank’s CAPITAL ADEQUACY
retail non-performing loan ratio rose by 0.05 pps Benefiting from net profit growth and refined capital
year to date to 1.42% as of June 30, 2024. China’s management, Ping An Bank’s core tier 1 capital
macroeconomy recovered in the first half of adequacy ratio rose to 9.33% as of June 30, 2024.
2024, but structural differences still existed. Retail

MANAGEMENT DISCUSSION AND ANALYSIS

non-performing loan ratio rose as some retail June 30, December 31,
(%) 2024 2023 Change
customers’ debt repayment capacity was still
recovering. Ping An Bank continuously upgraded Capital adequacy ratio
risk models to improve its customer identification Core tier 1 capital adequacy
capability, thereby achieving more precise customer ratio 9.33 9.22 0.11 pps
segmentation. Moreover, Ping An Bank proactively Tier 1 capital adequacy ratio 10.97 10.90 0.07 pps
adjusted its customer mix and asset portfolio, Capital adequacy ratio(3) 12.76 13.43 -0.67 pps
implemented differentiated risk management
Notes: (1) Ping An Bank and its wholly-owned subsidiary Ping
policies, steadily invested in high-quality assets, An Wealth Management Co., Ltd. (“Ping An Wealth
proactively expanded loan collection channels, and Management”) are included in the computation of the
enhanced non-performing loan disposal. above capital adequacy ratios. For the measurement
of capital adequacy ratios, the method specified in the
Administrative Measures for Capital of Commercial
In respect of corporate asset quality, Ping An Bank’s Banks promulgated by the NFRA is adopted from 2024
onward. The capital adequacy ratios as of December
corporate non-performing loan ratio was 0.66% as of 31, 2023 were still calculated by the method specified in
June 30, 2024, up 0.03 pps year to date. Ping An Bank the Administrative Measures for Capital of Commercial
continuously upgraded its risk policies and improved Banks (Trial) promulgated by the former China Banking
Regulatory Commission on June 7, 2012.
its asset quality management mechanisms. As a (2) According to the Additional Regulations for
result, corporate credit risk metrics remained good. Systematically Important Banks (Trial) and the 2023
List of Systematically Important Banks in China, Ping
An Bank is included in the first group on the list, and
shall meet conditions including a 0.25% supplementary
capital ratio, which means the minimum regulatory
requirements for its core tier 1 capital adequacy ratio,
tier 1 capital adequacy ratio and capital adequacy ratio
are 7.75%, 8.75% and 10.75% respectively.
(3) After RMB30 billion worth of tier 2 capital bonds issued
by Ping An Bank in 2019 were fully redeemed in April
2024, the capital adequacy ratio as of June 30, 2024
declined. Since Ping An Bank replenished capital by
issuing RMB30 billion worth of tier 2 capital bonds on
July 9, 2024, the capital adequacy ratio has remained
stable.

OVERVIEW OF PING AN WEALTH MANAGEMENT

Ping An Wealth Management, a wholly-owned
subsidiary of Ping An Bank, ensures strict risk and
compliance management, continuously develops
channels, implements prudent investment strategies,
diversifies its product portfolio, and fulfills its social
responsibilities. The balance of wealth management
products managed by Ping An Wealth Management
increased by 3.2% year to date to RMB1,045,116
million as of June 30, 2024.

Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd. 39

 Business Analysis
Asset Management Business

Ping An’s AUM increased steadily to over RMB7.6 trillion as of June 30, 2024.
The Company continuously enhances its capabilities of making asset
allocation, achieving stable long-term returns, and managing multi-asset
portfolios to deliver robust and sustainable returns to customers.

BUSINESS OVERVIEW SECURITIES BUSINESS

The Company conducts asset management business The Company provides securities brokerage, futures
primarily through companies including Ping An brokerage, investment banking, asset management,
Securities, Ping An Trust, Ping An Financial Leasing, and financial advisory services through Ping An
and Ping An Asset Management. Ping An’s AUM(1) Securities and its subsidiaries.
increased steadily to over RMB7.6 trillion as of June
30, 2024. Ping An Securities specified its “worry-free, time-
saving, and money-saving” value proposition
China’s macroeconomy continued to recover focused on customer needs in the first half of 2024.
steadily in the first half of 2024. However, it still Centering on quality, differentiation and efficiency,
faces short-term challenges including economic Ping An Securities improved business efficiency
restructuring, lackluster growth momentum, and and developed sustainable competitiveness by
mounting external uncertainties. Facing the complex advancing five strategic initiatives, comprehensively
environment, the Company proactively mitigated upgrading service systems, and building service and
risks to lay the solid foundations for future high- brand moats.
quality development of asset management business.

The Company continuously enhances its capabilities

of making asset allocation, achieving stable long-
term returns, and managing multi-asset portfolios
to deliver robust and sustainable returns to
customers. Staying customer-centric, the Company
will continuously strengthen risk management,
optimize asset-liability management, pursue high-
quality development, and proactively help improve
the real economy’s quality and efficiency. Moreover,
the Company will continuously increase support for
major national strategies and projects in key areas.

Note: (1) The AUM is the sum of AUMs of Ping An Securities,

Ping An Trust, Ping An Financial Leasing, Ping An Asset
Management and so on.

40 Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd.

• In brokerage business, Ping An Securities • Ping An Securities continuously enhances its
continuously furthers the transformation professional capabilities in trading and asset
of wealth management. Ping An Securities management businesses. In trading business,
built a closed-loop customer acquisition and Ping An Securities continuously upgrades
development system centered on customer its “human + machine” platform to empower

MANAGEMENT DISCUSSION AND ANALYSIS

journeys for brokerage business. Moreover, trading capabilities and enhance competitive
Ping An Securities built a professional and advantages with technologies. Yield of trading
heartwarming 24/7 advisory service system outperformed the market benchmark in the
for customers through a unified product and first half of 2024. In asset management business,
service framework, data-driven investment Ping An Securities improves its investment
advisory capabilities, and an industry-leading research management framework under the
smart brokerage service platform. As a result, value proposition of seeking absolute returns,
Ping An Securities realized steady growth in focusing on investment needs of institutional
both the number of customers and market clients including insurers and bank wealth
share. Ping An Securities had over 24.05 million managers. Ping An Securities ranked 9th by
retail customers and ranked among top three average monthly AUM(3) in the industry in the
brokers firmly by app user activeness as of first half of 2024, up one place year to date.
June 30, 2024. The market share of Ping An
Securities in terms of equity and fund trading Notes: (1) The computation of the market share in terms of equity
and fund trading volume (excluding seat leasing)
volume (excluding seat leasing)(1) reached 3.76% excludes the Northbound Stock Connect market.
in the first half of 2024, up 18 bps year on year. (2) Asset-backed securities (“ABS”) refer to ABS products
regulated by the CSRC, and bonds refer to corporate
bonds and bonds issued by state-owned enterprises.
• Ping An Securities adheres to its business (3) The ranking in the asset management industry is from
the Asset Management Association of China, exclusive
strategy of selective investment banking. In of ABSs.
investment banking business, Ping An Securities
effectively serves the real economy by
promoting the modernization, transformation
and upgrading of industries. Ping An Securities
thoroughly implements the philosophy of
“customer-centricity, full product coverage, and
one-stop services” and continuously advances
systematic strategies. In equity business, Ping
An Securities develops private equity business
by pursuing breakthroughs in key sectors and
regions. In debt business, Ping An Securities
focuses on key regions and products, ensures
business sustainability, and exploits synergies
among sourcing, underwriting and sales. Ping
An Securities remained among top players in
the industry by debt underwriting scale, ranking
2nd in asset-backed securities(2) volume and 6th
in bond(2) underwriting respectively in the first
half of 2024.

Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd. 41

 Business Analysis
Asset Management Business

TRUST BUSINESS PING AN FINANCIAL LEASING

Ping An Trust focuses on asset service trust Ping An Financial Leasing engages in financial
business including family trusts and insurance trusts leasing via a nationwide business network as an
in 2024. For direct selling, Ping An Trust strictly industry leader by comprehensive strength. Ping An
implements the requirements regarding accredited Financial Leasing has built its presence in various
investor identification, product suitability, audio areas including engineering and construction,
and video recording, and risk disclosure. For manufacturing and processing, next-generation
distribution, Ping An Trust partners with licensed infrastructure, urban development, city operations,
financial institutions only, strictly controls channel auto finance, commercial vehicles, small and micro
admittance, and carries out stringent ex post finance, strategic channels, structured financing,
supervision. In respect of management, Ping An and Ping An factoring. In the future, Ping An
Trust builds systems, establishes mechanisms, Financial Leasing will accelerate its presence in new
and controls risks. By developing Comprehensive energy, next-generation infrastructure and new
Risk Management System 2.0, an extensive risk lifestyles, and actively explore operation-oriented,
management network, Ping An Trust strengthens management-oriented and service-oriented business
business risk management and improves risk models. By doing so, Ping An Financial Leasing
prediction and mitigation. Moreover, Ping An will strive to become a world-leading innovative
Trust advances transformation and development financial leasing expert focusing on industries,
in accordance with the new regulation on trust serving the real economy, and adopting unique
classification. models.

Total assets held in trust amounted to RMB838,158

million as of June 30, 2024.

42 Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd.

Ping An Financial Leasing maintains steady overall PING AN ASSET MANAGEMENT
operations by continuously strengthening risk Ping An Asset Management, entrusted with the
management and refining management before, Company’s insurance funds, is responsible for the
during and after leasing deals. Non-performing asset domestic investment management business of the
ratio dropped significantly year to date to 1.04% as Company. Moreover, Ping An Asset Management

MANAGEMENT DISCUSSION AND ANALYSIS

of June 30, 2024. Sufficient provisions have been set also provides comprehensive third-party asset
aside, indicating an ample risk buffer. Moreover, management services and diverse, one-stop
Ping An Financial Leasing keeps overall risks investment management solutions to domestic and
under control by tightening customer admittance overseas customers.
management, improving leased asset management,
enhancing risk assessment, business operations and Adhering to the philosophies of value investing and
asset monitoring, building the anti-fraud system, and long-term investing, Ping An Asset Management is
continuously strengthening risk asset disposal and widely recognized in the market for its customer-
recovery. centric approach and commitment to doing the
right things in the long term. As one of the largest
June 30, December 31, and most influential institutional investors in
(in RMB million) 2024 2023 Change (%)
China, Ping An Asset Management has profound
Total assets 265,922 240,024 10.8 experience in asset management. AUM amounted
Non-performing to nearly RMB5.52 trillion as of June 30, 2024,
asset ratio (%) 1.04 1.22 -0.18 pps including stocks, bonds, funds, debts, and equity
stakes on open and non-open capital markets as
well as money markets. Moreover, Ping An Asset
Management possesses capabilities of cross-market
asset allocation and full-spectrum asset investment.

June 30, December 31,

(in RMB million) 2024 2023 Change (%)

AUM 5,519,107 5,033,945 9.6

Including: Third-party AUM 518,737 528,427 (1.8)

Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd. 43

 Business Analysis
Technology Business

Ping An remains focused on technological empowerment to build leading

technological capabilities and empower its ecosystems.
The Company engages in technology business through member companies
including Lufax Holding, OneConnect, Ping An Health and Autohome,
providing diverse products and services for ecosystem users, with
significant synergies.

TECHNOLOGICAL EMPOWERMENT The Company engages in technology business

Ping An continuously invests in R&D to build leading mainly through member companies including
technological capabilities, which have been widely Lufax Holding, OneConnect, Ping An Health and
utilized to empower its core financial businesses and Autohome, providing diverse products and services
accelerate the development of its ecosystems. Ping for ecosystem users, with significant synergies.
An promotes technological empowerment in diverse
business scenarios. Moreover, Ping An improves LUFAX HOLDING
the industry ecosystem and technology by sharing Lufax Holding (NYSE: LU; SEHK: 06623.HK) is a
leading innovative products and services with leading financial services enabler for small business
external entities. owners (“SBOs”) in China. Lufax Holding is
committed to providing SBOs with comprehensive,
Ping An remains focused on developing core convenient financial products and services as
technologies and securing proprietary intellectual well as enabling financial institutions to reach and
property rights. Ping An had a first-class technology serve SBOs efficiently. Lufax Holding continued to
team of over 20,000 technology developers and advance its quality-first prudent business strategy
over 3,000 scientists as of June 30, 2024. The and reduced its lending business in the first half of
Group’s patent applications led most international 2024. As a result, total income decreased 33.1% year
financial institutions, totaling 52,185. Of the patent on year to RMB12,940 million. Moreover, tax expense
applications, nearly 95% were for inventions, and increased due to a special dividend paid by Lufax
9,347 were made under the Patent Cooperation Holding. As a result, net loss amounted to RMB1,663
Treaty and abroad. From the perspective of million in the first half of 2024.
transforming and upgrading Ping An’s core
businesses, technology benefits are reflected Lufax Holding integrates high-quality resources
in higher sales, better business efficiency, and in the financial services ecosystem as a leading
stronger risk management. The volume of services financial services enabler for SBOs in China. With
provided by Ping An’s AI service representatives(1) proprietary data accumulated over 18 years and
reached about 870 million times, accounting for AI-driven dynamic risk modeling, Lufax Holding has
80% of Ping An’s total customer service volume in provided 23.17 million SBOs and retail customers
the first half of 2024. The AI service representatives with offline-to-online credit enablement services
responded to and handled customer inquiries and from offline consultation to online application. In
complaints swiftly. Via smart underwriting and smart addition, Lufax Holding continuously promotes
claim settlement, 93% of Ping An Life’s policies technology application and enhances its capabilities
were underwritten within seconds, and it took an of empowering borrowers and identifying risks by
average of 7.4 minutes to close a claim with Smart applying AI in areas including borrower acquisition,
Quick Claim. Moreover, claims savings via smart customer risk identification and loan management.
fraud risk identification grew 4.3% year on year to
RMB6.1 billion in the first half of 2024 as Ping An
continuously strengthened risk management.

Note: (1) The volume of services provided by AI service

representatives refers to the total times of inbound and
outbound call services provided by speech robots and
text robots for credit card and insurance business lines.

44 Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd.

Financial Data OneConnect focused on upgrading products and
For the six months ended June 30 Change acquiring new customers in the first half of 2024.
(in RMB million) 2024 2023 (%)
In digital banking, OneConnect provides financial
Total income 12,940 19,348 (33.1) institutions in the banking industry with three
(1,663) holistic solutions, namely digital retail banking,

MANAGEMENT DISCUSSION AND ANALYSIS

Net profit(1) 1,637 N/A
digital credit management, and digital operation to
Note: (1) Net profit refers to net profit attributable to Lufax
Holding’s shareholders of the parent company. facilitate their digital transformations. Such solutions
help them expand banking business, reduce
Operational Data operational risks, enhance management quality and
June 30, December 31, Change efficiency, and realize high-quality development.
2024 2023 (%) In digital insurance, OneConnect helps insurers
Cumulative number of digitize their whole processes. For property &
borrowers (in million) 23.17 20.94 10.7 casualty insurance, OneConnect’s end-to-end digital
Outstanding balance of solution covers the underwriting, claim settlement
loans enabled and ecosystem-based services of auto insurance,
(in RMB million) 235,212 315,395 (25.4) and is gradually extended to non-auto insurance,
helping insurers cut costs, prevent frauds and
Note: Figures may not match the calculation due to rounding.
improve services. For life insurance, OneConnect’s
“Omnichannel Agent Solution” offers modules
ONECONNECT
including digital sales, services and management
OneConnect (NYSE: OCFT; SEHK: 06638.HK)
to help insurers improve quality and efficiency in
is a technology-as-a-service provider for the
scenarios including customer development, agent
financial services industry. OneConnect provides
management, multichannel business development
“full-stack” integrated technology solutions to
and smart application. In terms of Gamma Platform,
financial institutional customers, including digital
OneConnect integrates a range of digital solutions
banking solutions and digital insurance solutions.
that can be extensively applied to financial services,
OneConnect also provides digital infrastructure
including AI customer services and digital fintech
for financial institutions through Gamma Platform.
infrastructure. AI customer services standardize
Under the “business + technology” model,
AI financial scenarios, processes and training
OneConnect’s solutions enable its customers’
methodologies, enabling financial institutions to
digital transformations, which help them improve
promote AI remote services more quickly and
efficiency, enhance service quality, and reduce costs
improve AI application more effectively while
and risks. OneConnect’s revenue reached RMB1,416
cutting operating costs.
million in the first half of 2024, and its net loss
narrowed to RMB70 million.
Centering on Hong Kong and Southeast Asia,
OneConnect continuously develops overseas
markets to enhance its global influence, focusing
on high-value customers in regions including
the Middle East and South Africa. In Hong Kong,
OneConnect continuously advances collaboration
with the government and financial institutions in
digitization. In Southeast Asia, OneConnect focuses
on upgrading digital banking solutions for local
financial institutions and building end-to-end omni-
channel digital platforms to improve the efficiency
and quality of banking services as well as reduce
risks and costs.

Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd. 45

 Business Analysis
Technology Business

Financial Data(1) • In respect of ecosystem development, as an

For the six months ended June 30 integral part of the Group’s “managed care
(in RMB million) 2024 2023 Change (%)
model” and a flagship in the health and senior
Revenue 1,416 1,833 (22.8) care ecosystem, Ping An Health facilitates the
Gross profit(2) 558 735 (24.1) Group’s “heartwarming financial services” by
Net loss(3) (70) (114) (38.0) acting for payers, integrating providers and
unlocking synergies in “integrated finance +
Notes: (1) The above is financial data of OneConnect’s continuing
operations.
health and senior care.” Via the improving
(2) Gross profit is non-IFRS adjusted gross profit. O2O network, Ping An Health provides large
(3) Net loss refers to net loss attributable to OneConnect’s numbers of retail financial users, corporate
shareholders of the parent company.
(4) Figures may not match the calculation due to rounding. clients, and retail consumers with full-scenario,
high-quality health and senior care services
Operational Data in five scenarios, namely health, sub-health,
For the six months ended June 30 2024 2023 Change (%) disease, chronic disease and senior care
management. Moreover, Ping An Health has
Premium-plus customers(1) 93 121 (23.1)
developed health and senior care service
Note: (1) The number of premium-plus customers is the number capabilities for years to offer effective
of institutional customers contributing at least RMB1
million to OneConnect’s annual revenue, excluding Ping
solutions to the industry’s pain points, namely
An Group and its subsidiaries. “unbalanced supply and demand, insufficient
high-quality services, underutilization of
PING AN HEALTH resources, and fragmented market supply.”
Ping An Health (SEHK: 01833.HK; stock short name:
PA GOODDOCTOR), centering on family doctor • In respect of medical service capabilities, Ping
membership and leveraging a diversified, premium An Health positions family doctors as doctors,
online-to-offline (“O2O”) service network, has customer managers and navigators. While
developed a specialized, comprehensive, high- helping Ping An Health integrate supply-side
quality and one-stop “health and senior care” health and senior care resources and improve
services platform to provide users with “worry-free, O2O closed-loop services, family doctors
time-saving, and money-saving” health and senior also help users address breakpoints in online
care services. Ping An Health achieved RMB2,093 and offline services to meet full-lifecycle,
million in revenue and RMB57 million in net profit pan-healthcare user needs with professional,
in the first half of 2024. The number of cumulative efficient and heartwarming services.
paying users was approximately 40 million for the
twelve months ended June 30, 2024.

46 Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd.

• In respect of customer acquisition capabilities, Autohome continuously makes breakthroughs
Ping An Health seeks customers from payers in digitization and new energy vehicle (“NEV”)
by maintaining in-depth collaboration with marketing to seize development opportunities in the
the Group’s core financial businesses and auto industry. In respect of digitization, Autohome
leveraging Ping An Health’s own channels. enables the digital transformation of automakers

MANAGEMENT DISCUSSION AND ANALYSIS

Regarding integrated finance channels, Ping An and dealers in comprehensive marketing by
Health maintains in-depth collaboration with upgrading the data product matrix and diversifying
the Group’s core financial businesses through application scenarios for AI and large language
“product integration, benefit procurement, and models. In this way, Autohome maintained double-
value-added services.” Regarding corporate digit growth in data product revenue in the first half
clients, Ping An Health works to acquire large of 2024.
and medium-sized corporate clients to provide
full-lifecycle health and senior care services China’s passenger car sales resumed growth driven
for retail financial users and corporate clients’ by NEV sales in the first half of 2024, showing huge
employees. Ping An Health cumulatively served development potential and market space. Autohome
1,748 enterprises as of June 30, 2024. not only provides NEV makers with traditional
services including media and leads generation, but
For the six months ended June 30 Change integrates different business models to upgrade
(in RMB million) 2024 2023 (%)
NEV marketing practices, providing partners with
Revenue 2,093 2,222 (5.8) new retail services through Autohome Energy
Gross profit 674 715 (5.8) Space. The expansion of Autohome Energy Space,
Net profit(1) 57 (245) N/A which now has a presence in 21 cities across
the country to help partners boost sales, helps
Notes: (1) Net profit refers to net profit attributable to Ping An
Health’s shareholders of the parent company.
Autohome build brand awareness among users.
(2) Figures may not match the calculation due to rounding. Autohome’s NEV business revenue continued to
grow faster than broader industry sales in the first
AUTOHOME half of 2024.
Autohome (NYSE: ATHM; SEHK: 02518.HK), the
leading online destination for automobile consumers For the six months ended June 30 Change
(in RMB million) 2024 2023 (%)
in China, is committed to developing a smart auto
ecosystem centered on data and technology. Within Revenue 3,482 3,367 3.4
this ecosystem, Autohome provides auto consumers Net profit(2) 1,066 1,053 1.3
with diverse products and services across the full
Notes: (1) The number of mobile daily active users is from Quest
auto lifecycle. Autohome’s mobile daily active Mobile.
users(1) increased 8.3% year on year to 67.91 million (2) Net profit refers to non-GAAP adjusted net income
attributable to Autohome Inc.
in June 2024. In addition, Autohome continuously (3) Figures may not match the calculation due to rounding.
upgrades its “ecosystem strategy,” providing
comprehensive services for consumers, automakers,
and various players in the auto ecosystem.
Autohome’s revenue and net profit reached
RMB3,482 million and RMB1,066 million respectively in
the first half of 2024.

Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd. 47

 Integrated Finance

Integrated finance brings higher operational efficiency to Ping An, reflected

especially by lower customer acquisition cost, lower management and
service costs, and higher customer retention rates.
The Group’s retail customers increased by 1.9% year to date to 236 million
as of June 30, 2024; 24.9% of them held four or more contracts within the
Group, with a retention rate of 97.8%.
Contracts per retail customer reached 2.93. Over 87.92 million retail
customers held multiple contracts with different subsidiaries.

THE INTEGRATED FINANCE STRATEGY • An industry leader focusing on Chinese markets

Ping An’s integrated finance strategy is focused and core financial businesses: The Chinese
on the development of retail customers(1) under mainland is the key market for Ping An’s
a customer-centric philosophy. In retail business, integrated finance business. Ping An Life is the
Ping An leverages its ecosystems to build a brand second largest life insurer in China by premium
of heartwarming financial services by providing income. Ping An P&C is the second largest
“worry-free, time-saving, and money-saving” one- property and casualty insurer in China by
stop integrated finance solutions. premium income. Ping An Asset Management
is the second largest insurance asset manager
Note: (1) Retail customers refer to retail customers holding in China by AUM. Ping An Bank ranks firmly
valid financial products with the Group’s core financial
companies. among top joint-stock commercial banks in
China by a combination of assets, net profit
Ping An’s Unique Advantages in Integrated Finance and so on.
Ping An has unique advantages in implementing the
retail integrated finance model: • Strong online-merge-offline channel networks:
Offline, Ping An has over 1.3 million sales
• An integrated financial services group with service agents for property & casualty
a full suite of financial business licenses, insurance, life insurance and other businesses,
extensive presence and strong synergies: Ping and over 7,000 outlets for life insurance,
An is an integrated financial services group property & casualty insurance, banking and
with a full suite of financial business licenses other businesses, covering all provinces
and a robust shareholding structure. The and cities across China. Online, Ping An has
Group has multiple core member companies in developed multiple apps including Ping An
sectors including insurance, banking, and asset Jin Guan Jia, Ping An Pocket Bank, Ping An
management. Ping An has developed into a Auto Owner, and Ping An Health to provide
leading company that can provide customers customers with convenient services and
with comprehensive financial services in China. premium products.
Under the integrated finance model, member
companies closely collaborate with each other
to improve customer acquisition, activation,
migration and retention, and reduce operational
and risk costs.

48 Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd.

• Robust ecosystem-based service capabilities: Integrated Finance Brings Benefits to Customers
The coupling of Ping An’s breadth of business and Shareholders
with its powerful online ecosystems enables Benefits to customers. Ping An strives to become
the Group to provide diverse products and the most trusted integrated financial adviser to
services in a full range of health and senior customers. Adhering to the “worry-free, time-saving,

MANAGEMENT DISCUSSION AND ANALYSIS

care scenarios. 28.6% of the Group’s new retail and money-saving” value proposition, Ping An
customers were acquired from its health and provides comprehensive asset allocation and one-
senior care ecosystem in the first half of 2024. stop services. Ping An offers worry-free services
Retail customers who used services in the to customers through professional advisers, who
Group’s health and senior care ecosystem held simplify complex concerns, popularize professional
approximately 3.36 contracts and RMB57,500 in matters, and facilitate tedious issues. Ping An helps
AUM per capita, 1.6 times and 3.8 times those customers save time by integrating their multiple
held by non-users of these services respectively accounts through one-stop services, enabling one-
as of June 30, 2024. stop allocation to multiple products and one-click
access to multiple services. Ping An helps customers
• Strong technology platform capabilities: Ping save money by customizing superior protection
An has a world-leading integrated operations and allocation, achieving asset preservation and
center which is the largest in Asia. AI service appreciation via professional services, realizing
representatives recorded a customer service flexible redemption via connection of loyalty points
volume of approximately 870 million times, and benefits, avoiding unnecessary expenditures,
covering 80% of Ping An’s total customer and meeting more potential needs of customers.
service volume in the first half of 2024. Ping An
advances comprehensive digital transformation, Benefits to shareholders. Integrated finance
and employs technologies to improve the improves operational efficiency. This is shown by
quality, efficiency, and risk management of its three metrics: 1) lower customer acquisition cost
financial businesses. Claims savings from smart of integrated finance channels than that of external
risk identification amounted to RMB6.1 billion channels due to shorter customer acquisition paths
in the first half of 2024. Moreover, by leveraging and lower friction cost; 2) lower management
the technological strength of integrated and service costs as Ping An has a world-leading
finance, Ping An continuously enhances the integrated operations center which is the largest
capability and efficiency of cross-selling to in Asia, has built an integrated intelligent services
meet customer needs for migration within the system via back-office integration, rule management
Group. and tool empowerment, and improves quality and
efficiency continuously; and 3) stronger customer
• Highly synergistic organizational culture: The retention as the retention rate of customers holding
“One Ping An” culture centering on value four or more contracts within the Group is as high
maximization encourages member companies as 97.8%.
to collaborate closely in various businesses
under the common goal of boosting customer
value and the philosophy of “one customer,
multiple accounts, multiple products, and one-
stop services.” Ping An realizes synergies and
coordination in customer development, risk
management, investment operations, back-
office centralization and operations, consumer
rights protection, brand management, and the
value system. This enables close cooperation
and resource saving among businesses, driving
steady growth in the Group’s customer base,
contracts per customer and profit per customer
as well as value increases.

Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd. 49

 Integrated Finance

Group Operating Profit Growth Drivers

Ping An’s retail operating profit is driven by the number of retail customers, contracts per customer,
and profit per customer. The number of retail customers stood at 236 million as of June 30, 2024, with 2.93
contracts per customer. Operating profit per customer amounted to RMB260.37 in the first half of 2024. The
three numbers were under pressure in the first half of 2024 due to macroeconomic challenges including
lackluster effective demand, declining consumer willingness to consume and invest, and heightening credit
risk. However, markets are expected to recover further as macroeconomic control continues to take effect.
Ping An has full confidence in the future, firmly optimistic about the positive long-term fundamentals
of China’s economy and the huge potential of domestic markets. Ping An will continue to advance its
integrated finance strategy to meet customer needs, unlock value from existing customers, and drive
steady value growth.

Retail customers New customers

Unit: million Unit: million

June 30, 2024 236 +3.0% 1H 2024 13.92 -2.6%

Retail operating profit June 30, 2023 229 1H 2023 14.29

Unit: RMB million

1H 2024 61,447 -5.5% Contracts per

customer
1H 2023 65,004
Unit: contract per customer

Operating profit June 30, 2024 2.93 -1.9%

per customer June 30, 2023 2.99

Unit: RMB per customer

1H 2024 260.37 -8.2%

Product profitability
1H 2023 283.54

Notes: (1) The above operating profits are operating profits attributable to the shareholders of the parent company.
(2) Figures may not match the calculation due to rounding.

50 Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd.

RETAIL INTEGRATED FINANCE • Data. Ping An further strengthens personal
Retail Integrated Finance Strategy information protection and consumer rights
In retail business, Ping An adopts the model of “one protection under the customer-centric
customer, multiple accounts, multiple products, philosophy. Moreover, Ping An advances
and one-stop services,” leveraging technology and comprehensive digital development and

MANAGEMENT DISCUSSION AND ANALYSIS

compliant data analytics to gain precise insights develops group-wide customer, product and
into customer needs. Ping An builds a brand of channel tagging in a strictly compliant manner.
heartwarming financial services by meeting various By continuously improving customer profiling
customer needs and delivering “worry-free, time- and precisely understanding customer needs,
saving, and money-saving” ultimate customer Ping An provides customers with the most
experience via one-stop, multichannel integrated suitable products and services according to
finance solutions. Moreover, Ping An matches product and channel profiles. In this way,
products with scenarios, improves customer Ping An offers “demand-driven” targeted
acquisition, activation, migration and retention, recommendations to continuously optimize
and empowers business growth through financial customer experience.
integrated accounts by leveraging data, products,
benefits and an intelligent marketing services • Products. Striving to provide products and
platform. services that are “perceptible to customers,
innovative in the industry, and influential on
• Accounts. Remaining customer-centric, the market,” Ping An builds an evaluation
Ping An combines information of customer system which drives member companies to
demands for different businesses within the upgrade their flagship products and services
Group via integrated accounts to provide to deliver “worry-free, time-saving, and money-
efficient, suitable one-stop financial services saving” experience. Moreover, Ping An further
and deliver “worry-free, time-saving, and strengthens its customer-centric business
money-saving” ultimate customer experience. culture.
Integrated accounts, as a universal login system
for customers to log in to Ping An’s online
platforms, facilitate consistent brand perception
and improve our capabilities of acquiring and
activating customers and retaining customers’
funds and assets. Moreover, Ping An has
upgraded its online smart mini-program “Magic
Gateway” connecting 13 member companies’
apps to enhance its capabilities of customer
activation and migration through personalized
presentation of contents desired by customers.

Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd. 51

 Integrated Finance

• Benefits. Ping An accelerates the development Profit Drivers of Retail Integrated Finance
of its health and senior care ecosystem, The continuously expanding retail customer base,
and enhances its capabilities of “worry-free, steadily increasing contracts per customer, and
time-saving, and money-saving” services. robust product profitability have become drivers of
Ping An empowers customer development Ping An’s sustained retail business growth.
with various health and senior care benefits,
effectively boosting Ping An Bank’s AUM and 1. Number of retail customers
intermediary business revenue and Ping An The Group’s retail customers increased 1.9% year to
Life’s policy conversion. For instance, Ping An date to 236 million as of June 30, 2024. The Group has
Bank worked with Ping An Health and Ping An diverse integrated finance products and channels,
Healthcare Diagnostics Center to invite wealth which continuously drive customer acquisition. The
management customers to high-end checkups, number of new customers totaled 13.92 million in the
successfully developing family-based pension first half of 2024.
asset allocation and one-stop services. In close
collaboration with Ping An Health, Ping An Retail customer mix by product line
Life launched services including five highlights,
namely unique checkups, blood sugar control, June 30, December 31,
(in million) 2024 2023 Change (%)
online consultation, outpatient appointment
assistance and accompanying consultation, and Life insurance (1)
60.13 59.28 1.4
critical illness management. In this way, Ping Auto insurance(1) 64.31 62.71 2.6
An provides customers with “worry-free, time- Retail banking(2) 126.19 125.43 0.6
saving, and money-saving” one-stop value- Securities, funds and trusts 48.56 49.20 (1.3)
added health and senior care benefits, with an Others(3) 85.77 82.40 4.1
overall satisfaction degree of 99%. Ping An Life The Group 236.05 231.57 1.9
provided health management services to nearly Notes: (1) The numbers of insurance companies’ customers are
16 million customers in the first half of 2024. based on holders of in-force policies rather than policy
beneficiaries.
(2) Retail banking includes debit and credit cardholders,
• An intelligent marketing services platform. The with duplicates removed.
Group’s member companies coordinate the (3) Others include other investments, other loans, and
other insurance products.
themes and launches of seasonal marketing (4) Retail customers of separate product lines do not add
campaigns based on the pace of business up to the total due to the removal of duplicates.
development to drive customer migration
and product sales. Events including “Ping
An January 8 Marketing Campaign” brought
RMB3.07 trillion in total transaction volume in
the first half of 2024, effectively empowering
member companies to drive business growth.

52 Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd.

Retail customers increase steadily year by year Retail customer structure and contracts per customer

Unit: million Unit: contract per customer

226.64 231.57 236.05

221.91 HNWIs
20.13

MANAGEMENT DISCUSSION AND ANALYSIS

213.44 0.1%
198.31

Affluent
3.73
44.7%

Middle-class
December 31, December 31, December 31, December 31, December 31, June 30, 2.43
32.9%
2019 2020 2021 2022 2023 2024

Mass
Ping An’s retail customer structure 22.3%
1.90
Ping An deepens its understanding of customers
through long-term customer development. The
wealthier the customers are, the more contracts Notes: (1) Mass customers are those with annual income
they hold. Middle-class and above customers below RMB100,000, middle-class customers between
RMB100,000 and RMB240,000, and affluent customers
accounted for approximately 77.7% of the Group’s above RMB240,000. HNWIs have personal assets of
total retail customers as of June 30, 2024. High- RMB10 million or more.
(2) Figures may not match the calculation due to rounding.
net-worth individuals (“HNWIs”) held about 20.13
contracts per customer as of June 30, 2024, far more
than affluent customers. 2. Contracts per customer
As Ping An advances its integrated finance
strategy, retail cross-selling continues to deepen.
Approximately 11.77 million customer migrations
occurred within the Group in the first half of 2024.
Over 87.92 million retail customers held multiple
contracts with different subsidiaries of the Group
as of June 30, 2024. Contracts per retail customer
reached 2.93 as of June 30, 2024. Retail customers
and contracts per retail customer have increased
19.0% and 9.7% respectively since December 31, 2019.
The new customers are mainly auto, accident and
health insurance policyholders, credit cardholders,
and bank depositors.

Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd. 53

 Integrated Finance

The higher the number of contracts per customer, Number of retail customers by the number of
the higher the customer retention rate contracts per customer
Increasing the number of contracts per customer
is key to raising profit per customer and reducing Unit: million
1 contract 2-3 contracts ≥4 contracts
customer churn. Continuous customer development
leads to more contracts per customer and higher 231.57 236.05
221.91 226.64
213.44
customer retention. As of June 30, 2024, 24.9% of our 198.31
58.56 58.77
customers held four or more contracts within the 50.69 55.64 59.12
42.34
Group, and their retention rate was 97.8%, 12.6 pps
higher than that of those holding only one contract.
80.50 83.59 85.85 87.53
74.64 76.64
For the six months ended June 30, 2024

Customer retention rate

81.33 86.11 85.77 83.94 87.16 89.75
97.8%
90.3%
85.2% December 31, December 31, December 31, December 31, December 31, June 30,
2019 2020 2021 2022 2023 2024

Note: Figures may not match the calculation due to rounding.

Contracts per 1 2-3 ≥4

customer Proportion of customers by years with Ping An
Nearly 168 million or 71.0% of our customers have
been with the Group for five or more years as of
June 30, 2024, showing high customer retention.

Number of
customers
June 30, 2024 (in million) Proportion (%)

5 or more years 167.53 71.0

2-5 years 43.03 18.2
Less than 2 years 25.49 10.8
The Group 236.05 100.0
Note: Figures may not match the calculation due to rounding.

54 Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd.

3. Profit per customer Integrated finance’s contributions to Ping An
Integrated finance continued to make contributions Bank’s retail business
to the Company’s insurance businesses and Ping An Integrated finance’ s
For the six months contribution
Bank’s retail business in the first half of 2024. ended June 30, 2024 percentage (%)

MANAGEMENT DISCUSSION AND ANALYSIS

Net increase in wealth
Cross-selling between the Company’s insurance
management customers 38.8
businesses steadily deepened. Ping An Health
Net increase in retail AUM 61.7
Insurance’s premium income from cross-selling by
Ping An Life’s agents rose 10.0% year on year in the Auto loans granted 16.8
first half of 2024. New credit card customers 10.8

Premium income from cross-selling by Ping An Ping An’s customers increase continuously; in
Life’s agents particular, the growth in middle-class and above
For the six months Channel contribution
ended June 30, 2024
customers is faster than the Group average, and
(in RMB million) Amount Percentage (%) will drive value growth continuously. By leveraging
unique integrated finance advantages, Ping An will
Ping An P&C 18,206 11.4
offer diverse products and services to meet the
Ping An Annuity’s
demands of different customer segments.
short-term insurance 3,923 38.3
Ping An Health
Going forward, Ping An will remain customer-
Insurance 6,337 67.2
centric and strengthen technological capabilities to
Note: Premium income refers to original premium income.
drive product innovation and service enhancement,
improve customer experience, and create value for
retail customers continuously.

Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd. 55

 Health and Senior Care as a New
Driver of Value Growth

Ping An launched an innovative Chinese “managed care model” by

seamlessly combining its online/offline health and senior care ecosystem
with financial businesses in which Ping An acts as a payer, leveraging its
over ten years of operational and management experience in insurance
and health care industries.
Over the past decade, Ping An has been building a health and senior care
ecosystem in China with increasingly significant differential advantages
including “online, in-store and home-delivered” service capabilities, wide
coverage of hundreds of health and senior care service resources, and
access to high-quality proprietary resources. This is very important for
quality assurance purposes. Ping An had approximately 50,000 in-house
doctors and contracted external doctors as of June 30, 2024. Moreover,
Ping An partnered with over 36,000 hospitals (including all top 100
hospitals and 3A hospitals in China), over 104,000 health care management
institutions, and approximately 233,000 pharmacies as of June 30, 2024.
Ping An’s health and senior care ecosystem is creating both standalone
direct value and also significant indirect value by empowering our core
financial businesses through differentiated “Product + Service” offerings.
More than 63% of Ping An’s 236 million retail customers used services
from the health and senior care ecosystem as of June 30, 2024. They held
approximately 3.36 contracts and RMB57,500 in AUM per capita, 1.6 times
and 3.8 times those held by non-users of these services respectively.

“HEALTH AND SENIOR CARE ECOSYSTEM” China’s per capita health expenditure (1) is over
STRATEGY RMB5,400 (versus Japan’s approximately RMB28,000
Ping An has developed its health and senior care and Singapore’s approximately RMB26,000),
ecosystem for over ten years, covering business indicating huge room for growth. In addition,
lines including insurance, health care, investment China’s elderly population(2) exceeded 210 million
and technology. Ping An implements the health in 2023 (and is forecast to be over 300 million by
and senior care ecosystem strategy through the 2035), larger than Japan’s about 37.44 million and
coordinated operations of companies including Ping Singapore’s about 0.95 million, indicating significant
An Life, Ping An P&C, Ping An Annuity, Ping An room for the development of China’s medical
Health Insurance, and Ping An Health (stock short resources supply. Ping An’s health and senior care
name: PA GOODDOCTOR). ecosystem builds its service moat on three fronts,
developing the Chinese “managed care model” by
seamlessly combining differentiated health and
senior care services with financial businesses in
which Ping An acts as a payer to create unique
business models:

56 Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd.

• Firstly, Ping An’s health and senior care “Finance + health care”:
ecosystem generates revenue as the Group’s • For mid-market and high-end retail
internal service provider by empowering retail customers, Ping An provides “heartwarming
financial customers of the Group’s members services” by focusing on “insurance + health”
including Ping An Life and Ping An Bank; products. Nearly 16 million customers of Ping

MANAGEMENT DISCUSSION AND ANALYSIS

An Life used services from the health and
• Secondly, Ping An’s health and senior care senior care ecosystem in the first half of 2024.
ecosystem generates revenue by offering Notably, nearly 70% of Ping An Life’s newly-
employee health management services to enrolled customers used health management
corporate clients via integration with employee services in the first half of 2024. The chronic
benefit products of companies including Ping disease prevention and control function served
An P&C, Ping An Annuity and Ping An Health approximately 1.60 million users as of June 30,
Insurance; and 2024, with a quarterly outcome within-range
rate of 80% and a service satisfaction degree of
• Thirdly, Ping An’s health and senior care 99%.
ecosystem generates long-term revenue by
developing an online flagship medical platform • For large and medium-sized corporate clients,
and proprietary medical institutions to meet Ping An provides employee health management
domestic mid-market and high-end customers’ services featuring comprehensive benefits,
health and senior care needs. premium services and high cost-effectiveness
via “commercial insurance + health care fund +
Notes: (1) Per capita health expenditure for 2021. Data on China is health care service” products. Over 67 thousand
from the database of the National Bureau of Statistics
of China. Data on Japan and Singapore is from the corporate clients and their nearly 27 million
World Bank’s database and estimated in RMB. employees were served in the first half of 2024.
(2) Elderly population data on China is from the database
of the National Bureau of Statistics of China and
the Research Report on Aging in China 2023. Elderly “Finance + senior care services”:
population data on Japan and Singapore is from the
• Ping An prioritizes the development of
World Bank’s database.
“insurance + home-based senior care” and
As an online flagship platform of the Group’s health “insurance + high-end senior care” products,
and senior care ecosystem and a bridge between providing convenient, premium senior care
payers and providers in the health and senior care services up to international standards for
industry chain, Ping An Health helps the Group’s middle- and high-income and ultra-high-net-
retail and corporate customers seamlessly navigate worth customers. Ping An rolled out 602 ten-
online and offline service resources in our health and dimensional home-based senior care service
senior care ecosystem. In addition, after acquiring benefits as of June 30, 2024, with over 120
PKU Healthcare Group, Ping An will further optimize thousand customers entitled to such benefits.
its strategies, strengthen its offline medical
resources, and build its proprietary flagship brand. Membership manager:
• Ping An maintains exclusive health records for
“HEALTH AND SENIOR CARE ECOSYSTEM” customers, and provides membership-based
PROGRESS health and senior care services via family
Payers: doctors and senior care concierges. Ping An
Ping An made significant progress in both retail guides members through an end-to-end “online,
and corporate customer development by effectively in-store and home-delivered” service network
integrating insurance with health and senior care covering consultation, diagnosis, treatment and
services. Ping An’s health and senior care ecosystem services under AI-enabled 24/7 seconds-level
had over 67 thousand paying corporate clients in the management.
first half of 2024. Ping An Health had approximately
40 million paying users over the 12 months ended
June 30, 2024. Ping An achieved over RMB70 billion
in health insurance premium income, and customers
entitled to service benefits in the health and senior
care ecosystem accounted for over 68% of Ping An
Life’s NBV in the first half of 2024.

Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd. 57

 Health and Senior Care as a New
Driver of Value Growth

Providers: • In respect of partner networks: Ping An

• In respect of proprietary flagships: PKU provides services via an “online, in-store, and
Healthcare Group’s revenue has continued home-delivered” service network by integrating
to grow, driven by its robust operations and domestic and overseas premium resources
faster development since its takeover by Ping including medical services, health services,
An in 2021. PKU Healthcare Group’s revenue commodities and medicines. Ping An had about
reached approximately RMB2.52 billion in the 50,000 in-house doctors and contracted external
first half of 2024. Peking University International doctors in China as of June 30, 2024. Ping An
Hospital continuously strengthened discipline partnered with over 36,000 hospitals (including
development, streamlined operations all top 100 hospitals and 3A hospitals), over
management, and comprehensively improved 104,000 health care management institutions and
patient services. Peking University International approximately 233,000 pharmacies (nearly 35%
Hospital’s revenue exceeded RMB1.13 billion in of all pharmacies, up by over 2,500 year to date)
the first half of 2024. Outpatient visits reached in China as of June 30, 2024. Moreover, Ping
approximately 600 thousand, and the number of An launched 602 ten-dimensional home-based
available beds reached a record high of 1,250 in senior care service benefits as of June 30, 2024.
the first half of 2024. Ping An had five general Overseas, Ping An partnered with over 1,300
hospitals, one rehabilitation hospital, one health care institutions in 35 countries across
cardiovascular and cerebrovascular hospital, 17 the world as of June 30, 2024, including 8 of
health management centers and 10 children’s global top 10 and 54 of global top 100(1).
rehabilitation centers as of June 30, 2024.
Note: (1) According to Newsweek’s World’s Best Hospitals List.

In the future, Ping An will comprehensively

develop its presence in health and senior care In addition, Ping An continuously advances
industries, further integrate PKU Healthcare healthtech R&D. As of June 30, 2024, Ping An had one
Group with Ping An’s existing health care of the world’s largest health care databases, enabled
ecosystem, and unlock more synergies between precise diagnosis of nearly 5,000 diseases, and
health care and insurance. PKU Healthcare proactively built a leading remote consultation and
Group will strive to become a leading medical treatment platform. In this way, Ping An effectively
group in China by promoting synergistic supports sustainable development of the health and
development of its four business lines, namely senior care ecosystem by building technological
medical, health management, rehabilitation capabilities in a forward-looking manner.
and digital services. As the flagship hospital
of PKU Healthcare Group, Peking University
International Hospital develops prestigious
national/regional medical centers, high-end
medical centers, and a global medical service
integration platform. Moreover, Peking
University International Hospital has partnered
with the world’s top hospitals including Mayo
Clinic, Cleveland Clinic, and UCLA Health.

In accordance with the CPC Central

Committee’s decisions on the Healthy China
initiative, Ping An will explore and establish
a unique, high-quality and efficient health
care service system to provide people with
comprehensive, full-cycle health services.

58 Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd.

POSITIVE RESULTS FROM A PROPRIETARY Under “insurance + service” and other models, Ping
“HEALTH AND SENIOR CARE ECOSYSTEM” An Health works with Ping An Life to participate in
Ping An’s proprietary health and senior care policyholders’ health management by integrating
ecosystem provides customers with excellent, different health and senior care service benefits
efficient service experience. Ping An has built up into life insurance policies. The “insurance + service”

MANAGEMENT DISCUSSION AND ANALYSIS

a strong reputation by providing excellent, efficient model gives Ping An’s insurance customers access
and convenient services through the health and to “online, in-store, and home-delivered” services
senior care ecosystem, enhancing its brand image in the health and senior care ecosystem. Moreover,
by word of mouth. For instance, Ping An Heath has Ping An Health tracks and improves policyholders’
established an online consultation and treatment health through in-house family doctors, providing
platform which covers nine medical specialties policyholders with a health account as well as
including dermatology, pediatrics and traditional a financial account. In this way, Ping An Health
Chinese medicine. Patients can see a doctor continuously empowers the Group’s core financial
remotely on a 24/7 basis and get responses within businesses, strengthens differential advantages of
60 seconds by means of images, texts, speeches, insurance business, and boosts customer acquisition,
videos and so on, without a need to queue offline. customer retention and customer value.
For difficult and complicated diseases, remote
consultations can be conducted. Moreover, Ping An Ping An Health provides Ping An Life’s policyholders
Health helps users prevent diseases by maintaining with access to diverse health and senior care
health records for them and carrying out regular services under the carefully built service brand
clinical follow-ups. There has been no major health of “Ping An Family Doctor.” Leveraging such
care incident since the online specialty consultation scenarios, Ping An Health continuously creates
and treatment platform was established, with five- policyholder touchpoints, maintains health records
star monthly reviews from over 98% of users. for policyholders, and tracks and manages
policyholders’ health in real time. For instance,
Ping An’s health and senior care ecosystem through Ping An Zhen Xiang RUN, Ping An Health
empowers its core financial businesses through provides Ping An Life’s policyholders with services
customer acquisition and retention. Synergies including five highlights, namely unique checkups,
between integrated finance and the health and blood sugar control, online consultation, outpatient
senior care ecosystem give Ping An Health and appointment assistance and accompanying
PKU Healthcare Group access to corporate and consultation, and critical illness management. By
retail customers of Ping An’s financial businesses. doing so, Ping An Health delivers one-stop “worry-
Moreover, they also give companies including Ping free, time-saving, and money-saving” health and
An Life access to service benefits in the Group’s senior care services.
health and senior care ecosystem. Over 63% of Ping
An’s 236 million retail customers used services from In the long run, Ping An Health will continuously
the health and senior care ecosystem as of June promote its services’ penetration of the Group’s
30, 2024. They held approximately 3.36 contracts retail financial customer base by unlocking synergies
and RMB57,500 in AUM per capita, 1.6 times and 3.8 with the core insurance business. Centering on
times those held by non-users of these services family doctors, Ping An Health will boost business
respectively. by enhancing user retention and conversion (into
paying users) in Ping An’s health and senior care
ecosystem via active user development. Moreover,
Ping An Health will continuously integrate premium
health and senior care resources to develop its
“online, in-store and home-delivered” service
network, increasing cost-effectiveness via the
economies of scale. In this way, Ping An Health will
become a long-term profit center while empowering
the Group’s core financial businesses.

Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd. 59

 Analysis of Embedded Value

EV of L&H rose 10.3% year to date to RMB916,230 million as of June 30, 2024,
with an annualized operating ROEV of 15.4%.
NBV of L&H amounted to RMB22,320 million in the first half of 2024, up
11.0% year on year.

KEY INDICATORS
For the For the
six months ended six months ended
June 30, 2024/ June 30, 2023/
(in RMB million) June 30, 2024 December 31, 2023 Change (%)

L&H EV(1) 916,230 830,974 10.3

L&H operating ROEV(2) (annualized, %) 15.4 14.4 1.0 pps
L&H value of first half year’ s new business after cost of
capital (NBV)(1) 22,320 20,112 11.0
Long-run investment return assumption (%) 4.5 4.5 –
Risk discount rate (%) 9.5 9.5 –
Notes: (1) NBV and EV for both the current period and the same period last year are based on the end-2023 long-run investment return
assumption (4.5%) and risk discount rate (9.5%).
(2) Operating ROEV in the first half of 2023 is based on a 5% long-run investment return and an 11% risk discount rate.

ANALYSIS OF EMBEDDED VALUE

The Company has disclosed information regarding EV in this section in order to provide investors with an
additional tool to understand our economic value and business results. The embedded value represents
the shareholders’ adjusted net asset value (“ANA”) plus the value of the Company’s in-force life and health
insurance business adjusted for the cost of holding the required capital. The embedded value excludes the
value of future new business.

In accordance with the related provisions of the Rules for the Compilation of Information Disclosures by
the Companies Offering Securities to the Public (No. 4) – Special Provisions on Information Disclosures
by Insurance Companies, the Company has engaged Ernst & Young (China) Advisory Limited to review
the reasonableness of the methodology, assumptions and calculation results of the Company’s analysis of
embedded value as of June 30, 2024.

The calculation of the analysis of embedded value relies on a number of assumptions with respect to
future experience. Future experience may vary from that assumed in the calculation, and these variations
may be material. The market value of the Company is measured by the value of the Company’s shares on
any particular date. In valuing the Company’s shares, investors take into account a variety of information
available to them and their own investment criteria. Therefore, these calculated values should not be
construed as a direct reflection of the actual market value.

The Standards for Actuarial Practice: Valuation Standard for Embedded Value of Life Insurance (the
“Standards”) issued by the China Association of Actuaries became effective in November 2016. The
Company has disclosed the interim embedded value for 2024 in accordance with the Standards and China
Risk Oriented Solvency System (“C-ROSS”).

60 Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd.

Components of Economic Value
June 30, December 31,
(in RMB million) 2024 2023

L&H adjusted net asset value (ANA) 460,634 384,510

MANAGEMENT DISCUSSION AND ANALYSIS

Value of in-force insurance business before cost of capital 564,595 550,593
Cost of capital (108,999) (104,128)

L&H EV 916,230 830,974

Other business ANA 559,878 559,152
Group EV 1,476,108 1,390,126
Note: Figures may not match the calculation due to rounding.

June 30, December 31,

(in RMB million) 2024 2023

Value of one year’ s new business 37,980 37,614

Cost of capital (4,693) (6,534)

Value of one year’ s new business after cost of capital 33,288 31,080
Value of first half year’ s new business after cost of capital 22,320 20,112
Notes: (1) NBV for both the current period and the same period last year is based on the end-2023 long-run investment return
assumption (4.5%) and risk discount rate (9.5%).
(2) Figures may not match the calculation due to rounding.

The adjusted net asset value of the life and health insurance business is based on the unaudited
shareholders’ net asset value of the relevant life and health insurance business of the Company as
measured in compliance with the Standards. This shareholders’ net asset value is calculated based on the
shareholders’ net asset value as measured in accordance with China Accounting Standards (CAS) and
adjusted for relevant differences including reserves. The adjusted net asset value of other business is based
on the shareholders’ net asset value of the relevant business of the Company in accordance with CAS.
The relevant life and health insurance business includes business conducted through Ping An Life, Ping
An Annuity and Ping An Health Insurance. The values placed on certain assets have been adjusted to the
market values.

Key Assumptions
The assumptions used in the embedded value calculation as at June 30, 2024 have been made on a “going
concern” basis, assuming continuation of the economic and legal environment currently prevailing in China.
The calculation is in line with the Standards and capital requirement under C-ROSS. Certain portfolio
assumptions are based on the Company’s own recent experience as well as considering the more general
China market and other life insurance markets’ experience. The principal bases and assumptions used in the
calculation are described below:

1. Risk discount rate

The discount rate for calculating the value of in-force and the value of new business of the life and
health insurance business is assumed to be 9.5%.

2. Investment return
For non-investment-linked insurance funds, the future annual investment return is assumed to be 4.5%.
For investment-linked funds, future investment returns have been assumed to be slightly higher than
the above non-investment-linked fund investment return assumption. These returns have been derived
by consideration of the current capital market conditions, the Company’s current and expected future
asset allocations and associated investment returns for a range of major asset classes.

Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd. 61

 Analysis of Embedded Value

3. Taxation
A 25% average income tax rate has been assumed. The percentage of investment returns that can be
exempted from income tax has been assumed to be 20%.

4. Mortality
The experience mortality rates have been based on the China Life Insurance Mortality Table (2010-2013)
and the Company’s most recent experience studies. They are tailored to be product specific and future
mortality improvement has been taken into consideration for annuity products.

5. Other incident rates

Morbidity rate and accident rate assumptions have been based on the industry table or the Company’s
own pricing table. The trend of long-term morbidity deterioration has been taken into consideration.
The loss ratios have been assumed to be within the range of 15% to 100% for short-term accident and
health insurance businesses.

6. Discontinuance
Policy discontinuance rates have been based on the Company’s recent experience studies. The
discontinuance rates are pricing interest rate and product type specific.

7. Expense
Expense assumptions have been based on the Company’s most recent expenses investigation.
Expense assumptions mainly consist of acquisition expense and maintenance expenses assumptions.
The unit maintenance expense was assumed to increase by 2% per annum.

8. Policyholder dividend
Policyholder dividends have been based on 75% of the interest and mortality surplus for individual
participating business. For group participating business, dividends have been based on 80% of interest
surplus only.

62 Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd.

New Business Value
The new business volumes measured at FYP and NBV by segment for the first half of 2024 are as follows:

FYP used to calculate New Business Value New Business Value

For the six months ended June 30

MANAGEMENT DISCUSSION AND ANALYSIS

(in RMB million) 2024 2023 Change (%) 2024 2023 Change (%)

Retail business 75,920 95,375 (20.4) 22,209 19,909 11.5

Agency 54,821 72,639 (24.5) 18,106 16,340 10.8
Bancassurance 11,746 14,342 (18.1) 2,641 2,251 17.3
Community Grid, tele and others 9,353 8,395 11.4 1,462 1,318 10.9
Group business 16,298 18,526 (12.0) 111 203 (45.3)

Total 92,218 113,901 (19.0) 22,320 20,112 11.0

Notes: (1) NBV for both the current period and the same period last year is based on the end-2023 long-run investment return
assumption (4.5%) and risk discount rate (9.5%).
(2) Community Grid, tele and others include Community Grid, telemarketing and Ping An Health Insurance’s retail business.
(3) The differences between FYP used to calculate NBV and FYP disclosed in Management Discussion and Analysis (“MD&A”) are
explained in the appendix.
(4) Figures may not match the calculation due to rounding.

The NBV margin by segment is as follows:

Based on FYP (%) Based on ANP (%)

For the six months ended June 30 2024 2023 2024 2023

Retail business 29.3 20.9 36.0 29.3

Agency 33.0 22.5 40.0 32.8
Bancassurance 22.5 15.7 36.3 22.1
Community Grid, tele and others 15.6 15.7 15.1 16.7
Group business 0.7 1.1 0.9 1.5

Total 24.2 17.7 29.9 24.8

Notes: (1) ANP is calculated as the sum of 100 percent of annualized first year premiums and 10 percent of single premiums.
(2) Figures may not match the calculation due to rounding.

Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd. 63

 Analysis of Embedded Value

Embedded Value Movement

The table below shows how the Company’s embedded value changed from the opening balance of
RMB1,390,126 million as of December 31, 2023 to the closing balance of RMB1,476,108 million as of June 30,
2024.

For the six months ended June 30

(in RMB million) 2024 Note

L&H Opening EV [1] 830,974

Expected return on opening EV [2] 28,490
Including: Unwinding of in-force 21,645 In-force and NBV unwind at the 9.5% risk discount
value rate
ANA return 6,845
NBV post-risk diversification benefits [3] 26,087
Including: NBV pre-risk diversified 22,320 Reported NBV based on a cost of capital calculated
at policy level
Diversification effects 1,537 Diversification within new business lowers cost of
within new business capital
Diversification effects 2,231 Diversification between new business and in-force
with in-force lowers cost of capital
Operating assumptions and model [4] (31)
changes
Operating variances and others [5] 9,568 Favorable operating experience, mostly from
variance in mortality spread gain

L&H EV operating profit [6]=[2+...+5] 64,114

Economic assumptions changes [7] –
Market value adjustment [8] 13,436 Change in market value adjustment of free surplus
during the Reporting Period
Investment return variance [9] 7,940
Non-operating one-off item and others [10] –

L&H EV profit [11]=[6+...+10] 85,490

Shareholder dividends (323) Dividends upstreamed from Ping An Health

Insurance to the Company
Employee stock ownership plan 89 L&H’ s Long-term Service Plan and Key Employee
Share Purchase Plan, as well as the offset effect
for the amortization during the Reporting Period

L&H Closing EV 916,230

Other business opening ANA 559,152

Operating profit of other business 23,826

Non-operating profit of other business 182 Revaluation gain or loss on the convertible bonds
issued by Lufax Holding to the Company
Market value adjustment and other 3,691
variance

Other business closing ANA before 586,851

capital changes

64 Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd.

For the six months ended June 30
(in RMB million) 2024 Note

Dividends received 323 Dividends upstreamed from Ping An Health

Insurance to the Company

MANAGEMENT DISCUSSION AND ANALYSIS

Dividends paid (27,161) Dividends paid by the Company to shareholders
Employee stock ownership plan (135) Long-term Service Plan and Key Employee Share
Purchase Plan, as well as the offset effect for the
amortization during the Reporting Period

Other business closing ANA 559,878

Closing group EV 1,476,108

Closing group EV per share (in RMB) 81.06

Note: Figures may not match the calculation due to rounding.

EV operating profit of L&H in the first half of 2024 was RMB64,114 million, mainly comprised of the NBV and
expected return on opening EV.

For the six months ended June 30

(in RMB million) 2024 2023

L&H EV operating profit [6] 64,114 63,155

L&H operating ROEV(1) (unannualized, %) [12]=[6]/[1] 7.7 7.2
L&H operating ROEV(1) (annualized, %) [13]=[12]*2 15.4 14.4
Notes: (1) Operating ROEV in the first half of 2023 is based on a 5% long-run investment return and an 11% risk discount rate.
(2) Figures may not match the calculation due to rounding.

SENSITIVITY ANALYSIS
The Company has investigated the effect, on the embedded value of the Group, embedded value of the life
and health insurance business and the value of one year’s new business, of certain independently varying
assumptions regarding future experience. Specifically, the following changes in assumptions have been
considered:

• A 50 bps increase or decrease in the investment return

• A 50 bps increase or decrease in the risk discount rate

• A 10% increase in mortality, morbidity and accident rates

• A 10% increase in policy discontinuance rates

• A 10% increase in maintenance expenses

• A 5% increase in the policyholders’ dividend payout ratio

• A 10% decrease in the fair value of equity assets

Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd. 65

 Analysis of Embedded Value

Sensitivity to Key Assumptions

(in RMB million) Group EV L&H EV NBV

Base case 1,476,108 916,230 33,288

Investment return increased by 50 bps per annum 1,587,690 1,027,812 40,089
Risk discount rate increased by 50 bps per annum 1,454,319 894,441 31,880
Investment return decreased by 50 bps per annum 1,364,626 804,748 26,461
Risk discount rate decreased by 50 bps per annum 1,499,875 939,997 34,784
10% increase in mortality, morbidity and accident rates 1,449,114 889,237 30,636
10% increase in policy discontinuance rates 1,474,454 914,576 32,860
10% increase in maintenance expenses 1,472,365 912,487 33,066
5% increase in the policyholders’ dividend payout ratio 1,467,641 907,764 33,139
10% decrease in the fair value of equity assets 1,449,373 895,914 N/A

ANALYSIS OF OPERATING PROFIT

This section contains the Group Operating Profit and Operating ROE, and Source of Earning and
Contractual Service Margin Analysis of L&H. The Company has engaged Ernst & Young (China) Advisory
Limited to review the reasonableness of the methodology and the calculation results of the Analysis of
Operating Profit for the first half of 2024.

The discount rate used for the measurement of insurance contract liabilities in life and health insurance
business is determined based on observable current market interest rates that reflect the characteristics of
insurance contracts. In order to optimize the match between assets and liabilities, the Company chooses to
classify some debt investments backing the business as debt investments measured at fair value through
other comprehensive income. When measuring operating metrics, we exclude the fair value changes
of debt investments backing life and health insurance business measured at fair value through other
comprehensive income, as well as the financial changes of insurance contract liabilities recognized in other
comprehensive income that may be reclassified subsequently into profit or loss, to reflect the essence of
the Company’s asset liability management, except for the relevant part of the business subject to the VFA.
The financial changes in insurance contract liabilities subject to the VFA are matched with the fair value
changes of the underlying assets backing this type of business. Therefore, no adjustments are made when
operating metrics are measured.

66 Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd.

Operating Profit of the Group
Operating profit is a meaningful business performance evaluation and comparison metric given the long-
term nature of the Company’s major L&H business. Ping An defines operating profit after tax as reported
net profit excluding the following items which are of a short-term, volatile or one-off nature and others:

MANAGEMENT DISCUSSION AND ANALYSIS

• Short-term investment variance applies to Life & Health business excluding the part subject to the
VFA(1). This short-term investment variance is the variance between the actual investment return on
the aforesaid business and the embedded value long-run investment return assumption. Net of the
short-term investment variance, the investment return on the aforesaid Life & Health business is locked
at 4.5%(2). Debt investments at fair value through other comprehensive income backing such business
are measured at cost;

• The impact of one-off material non-operating items and others is the impact of material items that
management considered to be non-operating incomes and expenses. Such impact in the first half of
2024 and the first half of 2023 comprised the revaluation gain or loss on the convertible bonds issued
by Lufax Holding to the Company.

Notes: (1) Insurance finance income or expenses of liabilities subject to the VFA match the changes in the fair value of the underlying
items backing such business. Therefore, no adjustment is made when operating metrics are measured.
(2) Operating profit for the current period and the same period last year is calculated based on the end-2023 long-run investment
return assumption (4.5%).

The Group’s operating profit after tax attributable to shareholders of the parent company in the first half
of 2024 was RMB78,482 million, down 0.6% year on year, with an annualized operation ROE of 16.4%. L&H
operating profit after tax attributable to shareholders of the parent company was RMB54,657 million, up 0.7%
year on year, with an annualized operation ROE of 29.4%.

Operating profit after tax attributable to shareholders of the parent company

The reconciliation between operating profit and reported net profit is as follows:

The Group L&H

For the six months ended June 30

(in RMB million) 2024 2023 2024 2023

Operating profit attributable to shareholders

of the parent company 78,482 78,950 54,657 54,288
Operating profit attributable to
non-controlling interests(1) 14,117 13,647 1,644 1,276

Operating profit [1] 92,599 92,597 56,301 55,564

Plus:
Short-term investment variance of L&H(2) [2] (4,078) (9,229) (4,078) (9,229)
Impact of one-off material non-operating
items and others(2) [3] 182 58 – –

Net profit [4]=[1+2+3] 88,704 83,426 52,224 46,335

Net profit attributable to shareholders of

the parent company 74,619 69,841 50,612 45,121
Net profit attributable to non-controlling
interests 14,085 13,585 1,612 1,214
Notes: (1) Operating profit attributable to non-controlling interests = net profit attributable to non-controlling interests in the
consolidated financial statements – (1 – proportion of shares held by the Company) * the above adjusted items.
(2) The short-term investment variance is based on the long-run investment return assumption (4.5%), and data for the
comparative period has been retrospectively adjusted as per the adjusted investment return assumption. The short-term
investment variance and impact of one-off material non-operating items and others set out above are net of tax.
(3) Figures may not match the calculation due to rounding.

Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd. 67

 Analysis of Embedded Value

For the six months ended June 30

(in RMB million) 2024 2023 Change (%)

Life and health insurance business 54,657 54,288 0.7

Property and casualty insurance business 9,909 9,242 7.2
Banking business 14,999 14,714 1.9
Asset management business 1,296 1,412 (8.2)
Technology business 291 1,735 (83.2)
Other businesses and elimination (2,670) (2,441) 9.4

The Group 78,482 78,950 (0.6)

Note: Figures may not match the calculation due to rounding.

Operating ROE (annualized)

For the six months ended June 30
(%) 2024 2023 Change (pps)

Life and health insurance business 29.4 33.6 (4.2)

Property and casualty insurance business 15.2 15.2 –
Banking business 11.9 12.7 (0.8)
Asset management business 2.8 2.4 0.4
Technology business 0.6 3.6 (3.0)
Other businesses and elimination N/A N/A N/A

The Group 16.4 17.6 (1.2)

Operating equity attributable to shareholders of the parent company

June 30, December 31,
(in RMB million) 2024 2023 Change (%)

Life and health insurance business(1) 400,492 344,892 16.1

Property and casualty insurance business 134,882 124,647 8.2
Banking business 250,307 244,777 2.3
Asset management business 92,407 92,836 (0.5)
Technology business 93,683 97,250 (3.7)
Other businesses and elimination (748) 13,090 N/A

The Group(1) 971,023 917,492 5.8

Note: (1) Excluding changes in fair value of debt investments measured at fair value through other comprehensive income backing life
and health insurance business, as well as accumulated insurance finance expenses for insurance contract liabilities recognized
through other comprehensive income that can be reclassified into profit or loss, except for the part subject to the VFA.

68 Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd.

Source of Earning and Residual Margin Analysis of L&H
The breakdown by source of earnings of L&H operating profit has been shown as below:

For the six months ended June 30

(in RMB million) 2024 2023

MANAGEMENT DISCUSSION AND ANALYSIS

Insurance service result and others [1]= [2]+ [5]+ [8] 47,047 48,115
Release of CSM [2] 36,529 38,665
CSM release base [3] 810,928 856,159
CSM release rate (annualized, %) [4]=[2]/[3]*2 9.0 9.0
Change in risk adjustment for non-financial risk [5] 3,438 3,025
Opening risk adjustment [6] 157,162 142,249
Risk adjustment release rate (annualized, %) [7] =[5]/[6]*2 4.4 4.3
Operating variances and others [8] 7,079 6,425

Investment service result(1) [9] 15,085 13,460

Operating profit before tax [10]=[1]+[9] 62,132 61,575

Income tax [11] (5,831) (6,012)

Operating profit [12]=[10]+[11] 56,301 55,564

Notes: (1) Investment service result is the investment income less the required return on reserves.
(2) Figures may not match the calculation due to rounding.

As of June 30, 2024, the contractual service margin of life and health insurance business was RMB774,399
million. The movement of L&H contractual service margin in the first half of 2024 is presented below:

For the six months ended June 30

(in RMB million) 2024 2023 Note

Opening CSM [1] 768,440 818,683

Contribution from new business [2] 23,737 27,157

( “New Business CSM” )
Present value of expected premiums [3] 229,530 257,100
from new business sold
New business CSM margin (%) [4]= [2]/[3] 10.3 10.6
Expected interest growth [5] 11,802 12,445
Changes in estimates that adjust [6] 1,472 (7,840) Mainly due to continuation
CSM(1) rate improvement and
the increase in insurance
protection fund rates last
year.
Changes in financial risks of insurance [7] 5,478 5,713
contracts subject to the VFA

CSM release base [8]= [1]+[2]+[5]+[6]+[7] 810,928 856,159

Release of CSM [9]=X%*[8] (36,529) (38,665)

Closing CSM [10]=[8]+[9] 774,399 817,494

Notes: (1) Excluding changes in financial risks of insurance contracts subject to the VFA.
(2) Figures may not match the calculation due to rounding.

Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd. 69

 Analysis of Embedded Value

Appendix
The differences between FYP used to calculate NBV and FYP disclosed in MD&A are explained below.

For the six months

ended June 30, 2024 FYP used to FYP disclosed
(in RMB million) calculate NBV in MD&A Difference Reasons

Retail business 75,920 117,760 (41,840) The FYP disclosed in MD&A includes
survival benefits and dividends
transferred into universal insurance
accounts as premiums of products
sold in previous periods, while the
FYP used to calculate NBV excludes
them.
Group business 16,298 12,383 3,915 In compliance with current accounting
standards, group investment
contracts are not included in FYP
disclosed in MD&A, but included in
FYP used to calculate value of new
business due to their contribution to
value of new business.

Total of L&H 92,218 130,143 (37,925)

Note: Figures may not match the calculation due to rounding.

70 Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd.

Liquidity and Capital Resources

Ping An’s comprehensive solvency margin ratio and core solvency margin
ratio under the C-ROSS Phase II were 208.8% and 164.9% respectively as of
June 30, 2024, both well above regulatory requirements.

MANAGEMENT DISCUSSION AND ANALYSIS

Free cash of the parent company remained reasonable at RMB45,835 million
as of June 30, 2024.
As approved by the Board of Directors, Ping An will pay an interim dividend
of RMB0.93 per share in cash for 2024.

OVERVIEW June 30, December 31,

The aim of the Group’s liquidity management is to (in RMB million) 2024 2023 Change (%)
maximize shareholder returns by strictly enforcing
Total assets 12,226,666 11,583,417 5.6
liquidity risk limits, improving the efficiency of fund
utilization, reducing funding costs, and optimizing Total liabilities 10,961,716 10,354,453 5.9
the allocation of financial resources and the capital Total liabilities
structure on the premise of security. to total assets
ratio (%) 89.7 89.4 0.3 pps
The Company coordinates and manages its liquidity
Note: Total liabilities to total assets ratio = total liabilities / total
and capital resources at the Group level. The assets.
Strategy and Budget Management Committee
and the Risk Management Executive Committee CAPITAL STRUCTURE
under the Group’s Executive Committee oversee In accordance with its capital plan, the Group
these essentials at the Group level. The Treasury ensures capital adequacy by issuing capital market
Department of the Group is the execution unit for instruments including equity securities, capital
liquidity and capital resources management. supplement bonds, tier 2 capital bonds, undated
capital bonds, perpetual subordinated bonds, and
The Group has put in place a robust capital subordinated corporate bonds to raise capital.
management and decision-making mechanism. Adjustments are made to surplus capital through
The Group’s subsidiaries put forward their capital dividend distribution or otherwise.
demands based on their own business development
needs. The parent company then submits its
recommendations on the overall capital plan for
the Group, based on the overall situation of the
subsidiaries’ business development. The Board
of Directors of the Group then determines a final
capital plan based on the strategic plan of the
Group before allocating capital accordingly.

Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd. 71

 Liquidity and Capital Resources

The following table shows the balances of capital bonds issued by the Group and main subsidiaries as of
June 30, 2024:

Par value Issuance

Issuer Type (in RMB million) Coupon rate year Maturity

Ping An Life Capital supplement 20,000 First 5 years: 3.58% 2020 10 years
bonds Next 5 years: 4.58%
(If not redeemed)
Ping An Bank Undated capital bonds 20,000 First 5 years: 4.10% 2019 Undated
Adjusted every 5 years
Ping An Bank Undated capital bonds 30,000 First 5 years: 3.85% 2020 Undated
Adjusted every 5 years
Ping An Bank Tier 2 capital bonds 30,000 Fixed rate of 3.69% 2021 10 years
Ping An Securities Perpetual subordinated 5,000 First 5 years: 3.86% 2021 Undated
bonds Adjusted every 5 years
Ping An Securities Subordinated corporate 1,900 3.10% 2022 3 years
bonds
Ping An Securities Subordinated corporate 1,100 3.56% 2022 5 years
bonds
Founder Securities Subordinated corporate 1,200 4.10% 2023 3 years
bonds
Founder Securities Subordinated corporate 1,500 3.68% 2023 2 years
bonds
Founder Securities Subordinated corporate 500 3.80% 2023 3 years
bonds

FREE CASH OF THE PARENT COMPANY The major free cash inflows were the dividends of
Free cash of the parent company includes bonds, RMB9,489 million from subsidiaries as detailed below:
bank deposits and cash equivalents that the parent
company holds. Free cash of the parent company For the six months ended June 30
is mainly invested in subsidiaries or used for daily (in RMB million) 2024
operations or dividend distribution. Free cash of the
Ping An Bank 6,916
parent company remained reasonable at RMB45,835
Ping An Financial Leasing 556
million as of June 30, 2024.
Ping An Trust 1,205
For the six months ended June 30 Ping An Securities 492
(in RMB million) 2024 Ping An Health Insurance 320

Opening balance of free cash 37,407 Total 9,489

Dividends from subsidiaries 9,489
Dividends paid out to shareholders –
Others (1,061)

Closing balance of free cash 45,835

72 Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd.

DIVIDEND DISTRIBUTION
According to Article 216 of the Articles of Association, the Company shall attach importance to reasonable
investment returns to investors in terms of profit distribution. The profit distribution policy of the Company
shall maintain its continuity and stability. The accumulated profit to be distributed in cash for the past three
years shall not be less than 30% of the average yearly distributable profit realized in the past three years,

MANAGEMENT DISCUSSION AND ANALYSIS

provided that the annual distributable profit of the Company (namely the profit after tax of the Company
after covering losses and making contributions to the revenue reserve) is positive in value and such
distributions are in compliance with prevailing laws and regulations and the requirements of regulatory
authorities for solvency margin ratios. In determining the specific cash dividend payout ratio, the Company
shall consider its profitability, cash flows, solvency position, and operational and business development
needs. The Board of Directors of the Company is responsible for formulating and implementing a profit
distribution proposal in accordance with the Articles of Association. The Board of Directors will ensure the
continuity and stability of the profit distribution policy so that the Group can seize opportunities for future
growth while maintaining financial flexibility. As approved by the Board of Directors, Ping An will pay an
interim dividend of RMB0.93 per share (tax inclusive) in cash for 2024.

Dividend payouts of the parent company are decided by taking account of percentage increases in
the Group’s operating profit attributable to shareholders of the parent company. The Company’s cash
dividends and cash dividend payout ratios computed on the basis of operating profit attributable to
shareholders of the parent company for the past five years are shown in the table below. Ping An has
grown its full-year cash dividend amount at a 7.0% compound annual growth rate over the past five years.

Cash dividend Cash dividend

payout ratio payout ratio based
based on on net profit
operating profit attributable to
attributable to shareholders of the
Cash dividend Growth of Cash dividend shareholders of Share repurchase parent company
per share cash dividend amount the parent amount (inclusive of share
(in RMB) per share (%) (in RMB million) company (%) (in RMB million) repurchases, %)

2023 2.43 0.4 44,002 37.3 – 51.4

2022 2.42 1.7 43,820 29.5 1,101 53.6
2021 2.38 8.2 43,136 29.2 3,900 46.3
2020 2.20 7.3 40,063 28.7 994 28.7
2019 2.05 19.2 37,340 28.1 5,001 28.3
Notes: (1) For 2022, the cash dividend payout ratio based on restated operating profit attributable to shareholders of the parent company
was 29.8%, and the cash dividend payout ratio based on restated net profit attributable to shareholders of the parent company
(inclusive of share repurchases) was 40.5%.
(2) Cash dividend per share includes the interim dividend and final dividend for the year. Pursuant to the Shanghai Stock
Exchange’s Guidelines for Self-regulation of Listed Companies No.7 - Repurchase of Shares promulgated by the SSE, the
Company’s A shares in the Company’s repurchased securities account are not entitled to dividend distribution.

CAPITAL ALLOCATION
When investing in subsidiaries, the Company strictly abides by laws, regulations, regulatory requirements
and its internal decision-making procedures. In respect of capital allocation, the Company prioritizes
supporting strategic development, ensuring steady growth in core financial businesses, and boosting
capital efficiency. The Company invests its capital prudentially, encourages capital-light operations, and
constantly optimizes returns on invested capital and asset-liability structures.

Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd. 73

 Liquidity and Capital Resources

GROUP SOLVENCY MARGIN

Ping An Group’s solvency margin ratios were significantly above the regulatory requirements as of June
30, 2024. Stable solvency margin ratios ensure that the Company meets capital requirements specified by
external institutions including regulators and rating agencies, and support the Company in developing
business and continuously creating value for shareholders.

June 30, December 31,

(in RMB million) 2024 2023

Core capital 1,381,483 1,320,654

Actual capital 1,749,657 1,714,110
Minimum capital 837,981 823,985

Core solvency margin ratio (%) 164.9 160.3

Comprehensive solvency margin ratio (%) 208.8 208.0
Notes: (1) Core solvency margin ratio = core capital / minimum capital. Comprehensive solvency margin ratio = actual capital / minimum
capital.
(2) The minimum regulatory requirements for the core solvency margin ratio and comprehensive solvency margin ratio are 50%
and 100% respectively.

Test results showing the impacts of declines in interest rates and equity assets on solvency margin ratios of
Ping An Group, Ping An Life, and Ping An P&C as at June 30, 2024 are disclosed below:

Core solvency margin ratio Comprehensive solvency margin ratio

June 30, 2024 Ping An Group Ping An Life Ping An P&C Ping An Group Ping An Life Ping An P&C

Base case 164.9% 123.6% 181.9% 208.8% 208.8% 205.0%

50 bps decline in current interest
rates 161.2% 112.7% 183.2% 203.8% 194.7% 206.4%
10% decrease in fair value of equity
assets 160.7% 115.6% 179.7% 205.8% 204.1% 203.0%

LIQUIDITY RISK MANAGEMENT

Liquidity risk refers to the risk of the Company being unable to obtain sufficient cash in time, or being
unable to obtain sufficient cash in time at a reasonable cost, to repay debts that have become due or fulfill
other payment obligations.

In accordance with international and domestic regulatory requirements, the Group has established a
liquidity risk management framework and guiding principles covering risk appetites and tolerance, risk
limits, risk monitoring, stress testing, and emergency management. Member companies have developed
their own management procedures and liquidity risk appetites, risk tolerance, and risk limits in line with
the applicable regulations, industry practices, and features of their business activities. The Group organizes
its member companies to regularly evaluate liquid assets and maturing debts, and use tools including
stress testing of cash flows to identify risks in advance. The Group and its member companies hold
sufficient liquid assets and maintain stable, convenient and diverse sources of financing to ensure that we
have adequate liquidity resources to tackle possible impacts from adverse situations. Moreover, we have
developed comprehensive emergency liquidity plans for effectively handling any significant liquidity risk
events. In addition, the Group effectively prevents the intra-group contagion of liquidity risk with internal
firewalls.

74 Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd.

CASH FLOW ANALYSIS
For the six months ended June 30
(in RMB million) 2024 2023 Change (%)

Net cash flows from operating activities 304,883 162,297 87.9

MANAGEMENT DISCUSSION AND ANALYSIS

Net cash flows from investing activities (148,497) (37,876) 292.1
Net cash flows from financing activities (155,035) (104,160) 48.8

Net cash inflows from operating activities increased year on year mainly due to an increase in cash inflows
from Ping An Bank’s deposits and bond borrowing/lending, a decrease in cash outflows from loans and
advances, and an increase in cash outflows from financial assets held for trading.

Net cash outflows from investing activities increased year on year mainly due to an increase in net cash
outflows from Ping An Life’s investing activities.

Net cash outflows from financing activities increased year on year mainly due to an increase in cash paid
by Ping An Bank to repay interbank certificates of deposit and tier 2 capital bonds.

CASH AND CASH EQUIVALENTS

June 30, December 31,
(in RMB million) 2024 2023 Change (%)

Cash 356,658 317,130 12.5

Bonds of original maturities within 3 months 12,768 3,995 219.6
Financial assets purchased under reverse repurchase
agreements of original maturities within 3 months 113,282 159,347 (28.9)

Total 482,708 480,472 0.5

The Company believes that the liquid assets currently held, together with net cash generated from future
operations and the short-term borrowings available, will be sufficient to meet the Group’s foreseeable
liquidity needs.

Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd. 75

 Sustainability

Ping An continuously serves the real economy by leveraging its integrated

finance advantages. Ping An cumulatively invested nearly RMB9.46 trillion
as of June 30, 2024 to bolster the real economy.

Ping An contributes to China’s carbon peak and neutrality goals by

upgrading its green finance initiative. Ping An’s green investment of
insurance funds totaled RMB124,877 million, and green loan balance
reached RMB164,634 million as of June 30, 2024. Green insurance premium
income totaled RMB23,605 million in the first half of 2024.
Ping An actively promotes rural vitalization by supporting industries,
health care and education. Ping An provided RMB17,024 million for rural
industrial vitalization through “Ping An Rural Communities Support” in the
first half of 2024.

SUSTAINABLE STRATEGIC MANAGEMENT • Execution: The Group ESG Office works

Sustainable development is Ping An’s development with the Group’s various functional centers
strategy as well as the basis for maximizing the as execution task forces to coordinate
Company’s long-term value. Based on sustainability- sustainability work within and outside the
related planning, Ping An carried out related work Group.
around 13 key initiatives in an orderly manner, and
completed the work review for the first half of 2024. • Practice: A matrix consisting of the Group’s
functional units and member companies is
Having integrated sustainability into its development responsible for ESG practices.
strategy, Ping An builds and practices a rational,
professional sustainability management framework In addition, Ping An’s member companies, including
and a clear, transparent environmental, social Ping An Life, Ping An P&C, Ping An Annuity, Ping An
and governance (“ESG”) governance structure. Health Insurance, Ping An Bank and Ping An Asset
In this way, Ping An continuously instructs all Management, have all established sustainability-
the functional centers and member companies of related committees or task forces responsible for
the Group to systematically enhance corporate the development and implementation of relevant
governance and business sustainability. The Group’s plans.
sustainability management framework comprises the
following four levels: In respect of ESG risk management, Ping An deeply
integrates the core theories and standards of ESG
• Strategy: The Board of Directors and its into the Group’s risk management, and supplements
Strategy and Investment Committee oversee comprehensive risk management with ESG risk
all ESG issues, in charge of the Company’s management requirements to ensure sustainable
sustainability-related strategic planning, risk long-term business development.
management, policy making, performance
review and so on.

• Management: The Sustainable Development

Committee under the Group Executive
Committee supervises the practice
management of green finance, rural
vitalization and other key ESG initiatives,
external communications for the Company’s
sustainability issues and so on.

76 Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd.

SUPPORT FOR REAL ECONOMY micro-enterprises, with a loan balance of about
Ping An continuously serves the real economy by RMB515,051 million as of June 30, 2024. Lufax Holding
leveraging its integrated finance advantages. Ping cumulatively served about 23.17 million customers,
An cumulatively invested nearly RMB9.46 trillion as with a facilitated loan balance of RMB235.2 billion.
of June 30, 2024 to bolster the real economy. Ping An Ping An P&C provided over RMB90 trillion worth of

MANAGEMENT DISCUSSION AND ANALYSIS

P&C provided over RMB4.3 trillion worth of insurance comprehensive insurance coverage for nearly 1.43
coverage for over 1,700 key engineering projects million small and micro-enterprises, and cumulatively
across China as of June 30, 2024. Moreover, Ping An paid over 170,000 claims totaling over RMB760 million
provided over RMB1.5 trillion worth of insurance as of June 30, 2024.
coverage for public facilities in 127 countries and
regions under the Belt and Road Initiative as of June SUSTAINABLE INSURANCE
30, 2024. Ping An Asset Management cumulatively Ping An continuously advances the R&D and
invested over RMB1.5 trillion directly in the real promotion of sustainable insurance products. In
economy as of June 30, 2024 to serve national respect of green insurance, Ping An focuses on
strategies through debt investment plans, asset developing products and services in areas including
funding plans, insurance private equity funds and so green industries, green living and ecological
on, including over RMB27 billion invested in the first agriculture to facilitate comprehensive green
half of 2024. transformation of the economy and society. These
products and services include chemical battery
Cumulative investments supporting real economy attenuation compensation liability insurance and
arable land productivity index insurance. In respect
(in RMB trillion) of social insurance, Ping An increases support for
9.46
people’s livelihoods and meets diverse needs of
8.77 social development by launching products including
scientific research project R&D expense insurance,
“e Hui Bao” million-cover insurance, and children’s
tax-credit long-term medical insurance. In respect
of inclusive insurance, Ping An constantly innovates
insurance products and upgrades services to
develop inclusive insurance products for small and
micro-enterprises, agricultural workers, “new urban
December 31, June 30,
2023 2024 citizens” and groups with special needs, providing
risk protection for their business development,
production, operations, employment and livelihoods.
In respect of inclusive finance, Ping An provides Ping An had launched 8,708 sustainable insurance
credit, insurance and other financial services for products as of June 30, 2024. Premium income of
key customer segments such as small and micro- sustainable insurance increased 5.9% year on year to
enterprises and new urban citizens via member RMB360,611 million in the first half of 2024.
companies including Ping An P&C, Ping An Bank
and Lufax Holding. Ping An conducted the “Month
of Inclusive Finance” campaign under the theme of
“Inclusive Financial Services Benefiting Enterprises
and Households” in March 2024 to meet various
sectors’ and groups’ demands with dedicated
innovative product solutions. During the campaign,
Ping An communicated inclusive finance policies via
its branches nationwide, and conducted extensive
demand surveys and business communications
by holding 7,142 exchange events which reached
31,416 market entities. Ping An Bank cumulatively
provided inclusive loans for over 888,500 small and

Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd. 77

 Sustainability

Premium income of sustainable insurance Assessment and Classification System” in the first
half of 2024. By doing so, Ping An Bank realized
(in RMB million) bank-wide ESG (including climate) risk management
of corporate credit customers in all credit
360,611
340,620 management processes before, during and after
lending.

The scale of Ping An’s responsible banking business

grew by 0.8% year to date to RMB1.22 trillion as of
June 30, 2024, including RMB179,069 million in green
banking business(1) (including a green loan balance
1H 2023 1H 2024 of RMB164,634 million), RMB689.6 billion in inclusive
banking business(2) and RMB353.0 billion in social
banking business(3).
For the six months ended June 30
(in RMB million) 2024 2023
Scale of responsible banking business
Premium income of sustainable
insurance 360,611 340,620 (in RMB billion)

Including: Green insurance(1) 23,605 17,735

Social insurance(2) 327,638 312,506 1,211.5 1,221.6
Inclusive insurance(3) 9,368 10,379
Notes: (1) The definition of green insurance is consistent with
the statistical reporting standards stipulated in the
Statistical Rules on Green Insurance Business issued
by the former CBIRC. Green insurance mainly includes
insurance services that address ESG risks, protect green
industries, and safeguard green living, such as climate
risk insurance and new energy vehicle insurance.
December 31, June 30,
(2) Social insurance includes liability insurance (such as
2023 2024
food safety insurance), medical insurance, and critical
illness insurance.
(3) Inclusive insurance includes agricultural insurance, Notes: (1) Green banking business includes the issuance and
insurance for rural areas, insurance for farmers, underwriting of green loans, green bonds, green trust
insurance for vulnerable groups, and insurance for small loans, green leasing, green asset securitization and so
and micro-enterprise operations. on. The statistics are based on the Special Statistical
Rules on Green Loans, the Green Bond Endorsed
Projects Catalog (2021 Edition) and so on.
RESPONSIBLE BANKING (2) Inclusive banking business includes banking services
Ping An promotes economic development, for small and micro-enterprises, agriculture, rural
areas, farmers and so on. According to the Notice on
social progress and environmental improvement Promoting High-Quality Development of the Banking
via responsible banking. Ping An embeds the Industry’s Financial Services for Small and Micro-
sustainability philosophy and the ESG risk Enterprises in 2018 issued by the General Office of the
former China Banking Regulatory Commission, loans
management philosophy in banking business to small and micro-enterprises refer to inclusive loans
development and operations to actively support to small and micro-enterprises that are each subject
to a credit limit of RMB10 million or less. Agriculture-
various economic activities with environmental related loans are defined in accordance with the Special
and social benefits. Ping An Bank formulated and Statistical Rules on Agriculture-related Loans. This
indicator includes related businesses of Ping An Bank
published the Environmental (Climate), Social
and Ping An Financial Leasing.
and Governance Risk Management Procedure (3) Social banking business includes Ping An Bank’s loans
for Corporate Credit Customers, and developed for infrastructure construction, pharmaceutical and
health care sectors, education and culture, and rural
and operated the “ESG (Including Climate) Risk vitalization as well as related businesses of Ping An
Trust and Ping An Financial Leasing.

78 Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd.

RESPONSIBLE INVESTMENT RESPONSIBLE PRODUCTS
Leveraging the long-term advantage of insurance Ping An continuously develops diverse products
funds, Ping An has incorporated ESG requirements to meet new customer needs for health and senior
into its investment decision-making processes to care. Ping An participates in the construction of
promote economic development, social progress elderly-friendly communities at multiple levels,

MANAGEMENT DISCUSSION AND ANALYSIS

and environmental improvement. Ping An has enabling more people to benefit from health
established a robust organizational structure and and senior care innovation and pension finance
policies for responsible investment. In respect of development. Ping An officially launched the “Ping
investment process management, Ping An has An Concierge Senior Care Service Alliance” jointly
incorporated ESG factors into investment due with partners in March 2024 to continuously build
diligence, compliance review, investment approval its home-based senior care service system and help
management, contract drafting, investment fund the elderly improve their home environment. Ping
disbursement management, and post-investment An upgraded its family doctor service brand “Ping
management. An Family Doctor” in June 2024 by promising to
provide users with proactive health management,
Ping An’s responsible investment of insurance effective chronic disease management and
funds(1) has amounted to RMB799,902 million as whole-course disease management in support of the
of June 30, 2024, including RMB124,877 million in systematization, standardization and high-quality
green investment(2), RMB652,562 million in social development of “Internet + Family Doctor.”
investment(3), and RMB22,463 million in inclusive
investment(4). SUPPORTING RURAL VITALIZATION
Ping An proactively supports China’s rural
Responsible investment of insurance funds vitalization strategy, leveraging its advantages in
“integrated finance + health and senior care” to
(in RMB million) continuously advance “Ping An Rural Communities
799,902
Support.” Focusing on “Village Industry, Village
725,256 Doctor and Village Teacher” programs, Ping An
supports rural vitalization in three key areas, namely
industries, health care and education, by delivering
insurance, finance and health care to rural areas.
Ping An provided RMB17,024 million for industrial
vitalization through financial services such as
“revitalization insurance” and “agricultural loans”
in the first half of 2024. Under the “Village Doctor
December 31, June 30,
2023 2024 Program” which promotes health care, Ping An
upgraded 17 village clinics and provided 13 sessions
Notes: (1) Responsible investment of insurance funds refers to of complimentary medical consultations in rural
investments with insurance funds of Ping An Life, Ping areas. Committed to education public welfare, Ping
An P&C, Ping An Annuity, and Ping An Health Insurance.
(2) Green investment includes specific industries and green An launched the “Together with Hope” initiatives
themes such as environmental protection, clean energy, to provide one-on-one support and grants to
pollution control, and so on.
(3) Social investment includes specific industries and
financially-challenged hardworking rural students.
social responsibility themes such as infrastructure Under the “Juvenile Science and Technology
construction, senior and health care, education and Literacy Enhancement” program, Ping An provided
culture, and so on, with ESG ratings as selection criteria.
(4) Inclusive investment includes specific industries and Ping An Hope Elementary Schools and other rural
inclusive finance themes such as supporting agriculture, schools with a series of scenario-based courses,
rural areas, and farmers, promoting rural vitalization,
and improving conditions in housing and shantytowns. which were taken by learners 21,838 thousand times.

Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd. 79

 Sustainability

VOLUNTEER SERVICES activities aimed to promote consumers’ financial

Ping An continuously conducted volunteer literacy and security awareness under an annual
activities including first aid and disaster prevention/ theme of “Protecting Rights and Preventing Risks
mitigation. The China Volunteer Service Federation via Financial Consumer Protection.” In addition,
designated Ping An as a “Caring for Your Health” Ping An provides 24/7 customer services through
volunteer training base in the first half of 2024. a dedicated national service hotline 95511 and 24/7
Under the “Ping An Guardian” initiative, the Ping complaint channels on platforms including its official
An Volunteers Association held over 2,300 public websites and WeChat accounts. There were 338
welfare events and actively organized first aid million inbound calls via 95511 in the first half of 2024,
training sessions in various places, reaching over with an average of about 1.86 million inquiries per
1,000 persons in the first half of 2024. Ping An day and a connection rate of 98.0%.
conducted multiple public welfare initiatives on
the “San Cun Hui” public welfare platform, and DEVELOPMENT AND WELFARE OF EMPLOYEES
cumulatively sponsored over 600 “Beside You” public Excellent talent is the primary productive force
welfare initiatives, in which Ping An’s employees that drives the development of enterprises. Ping
participated as volunteers over 3,330 times. The An builds a high-quality talent pool via systematic,
“San Cun Hui” public welfare platform had nearly planned and hierarchical selection and development
3.51 million registered users, including nearly 500 of reserve talent as well as rational and standardized
thousand employees and agents of Ping An as of performance management. Ping An promotes
June 30, 2024. the exchange and development of high-potential
talent through actual practice, job rotation, and
CONSUMER PROTECTION AND EXPERIENCE training. Ping An continuously optimizes diverse
Remaining customer needs-oriented, Ping An training resources and its smart learning platform
leverages its unique integrated finance advantages to meet the learning and development needs of
and constantly upgrades, optimizes and innovates employees at all levels. Ping An fully implemented
its services to meet consumers’ diverse financial and promoted a “learning credit system” in the first
needs. Ping An launched “2024 Customer Listening half of 2024 to link employees’ learning outcomes
Day” in May 2024 by coordinating efforts of its with their career development. Moreover, Ping An
member companies including Ping An Life, Ping An proactively promoted a “learning passport” model,
P&C, Ping An Bank, Ping An Health, Ping An Health under which all employees received and used their
Insurance, and Ping An Securities. A series of events learning passports as Ping An developed itself as a
such as “front-line listening by senior executives” learning organization. Ping An upholds a principle
and “customer listening and survey at 1,000 outlets of fair, equitable and transparent remuneration
in 100 cities” were held to understand customer and continuously rationalizes and optimizes
needs and facilitate “worry-free, time-saving, and remuneration management to provide competitive
money-saving” customer experience. remuneration. Meanwhile, Ping An establishes
and improves long-term incentive and restraint
Ping An constantly explores digital measures to mechanisms to retain key talent. In addition, Ping
protect financial consumer rights. Ping An adopts An provides diverse employee benefits to promote
a daily reporting mechanism for consumer rights employees’ physical and mental health, creates
protection, conducts training on consumer rights various complaint and feedback channels and trade
protection, and builds a knowledge base sharing unions to actively protect employees’ rights and
platform to develop an internal culture of fair and interests, and maintains a fair, equitable, harmonious
honest consumer rights protection. All new junior and healthy work environment for employees.
employees finished their online courses on consumer Ping An initiated the “Employee Listening Mailbox”
rights protection as of June 30, 2024. Moreover, Ping program in the first half of 2024 to encourage
An coordinated its member companies including employees to give suggestions on business
Ping An Life, Ping An P&C, Ping An Bank, and Ping development, products, brand culture, employee life
An Financial Leasing to carry out financial consumer and so on in a real-name manner or anonymously.
education activities in the first half of 2024. These

80 Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd.

BUSINESS CODE OF CONDUCT
Adhering to its moral codes, Ping An continuously
standardizes business conduct, employee conduct
and product responsibilities, and effectively
improves its management practices in line with the

MANAGEMENT DISCUSSION AND ANALYSIS

“Regulation +1” standard. All of Ping An’s employees
received anti-corruption education as of June 30,
2024. In addition to business ethics, Ping An strictly
complies with laws, regulations and industry norms
regarding information security and AI governance,
and always implements the Company’s information
security norms to the highest standard possible.
Moreover, Ping An focuses on the prevention and
control of technology-related ethical risks in AI and
other areas, promotes responsible innovation, and
continuously improves internal control policies and
processes to ensure operational compliance with
laws and regulations.

CLIMATE CHANGE AND CARBON NEUTRALITY

Ping An proactively embraces challenges and
opportunities from climate change by leveraging its
integrated finance advantages. Ping An gives full
play to green finance, advances green operations,
and takes strong measures to support green
development, contributing to China’s carbon peak
and neutrality goals. In reducing operational carbon
emissions, Ping An had 152 thousand employees
covered by the carbon account, who cumulatively
reduced carbon dioxide emissions 1,084 thousand
times by 20,240 tons as of June 30, 2024. On this
basis, the Group’s 1+N carbon account system not
only supports its own operational carbon emission
management internally, but also enables multiple
businesses externally to provide individual and
corporate clients with services related to green
living and carbon emission management.

Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd. 81

 Changes in the Share Capital and
Shareholders’ Profile

CHANGES IN SHARE CAPITAL

There was no change in the total number of shares and shareholding structure of the Company during the
six months ended June 30, 2024 (the “Reporting Period”).

January 1, 2024 Changes during the Reporting Period June 30, 2024
Issue of Transfer
Unit: Shares Number of shares Percentage (%) new shares Bonus issue from reserve Others Subtotal Number of shares Percentage (%)

I. Selling-restricted shares – – – – – – – – –
II. Selling-unrestricted circulating shares
1. RMB ordinary shares 10,762,657,695 59.10 – – – – – 10,762,657,695 59.10
2. Domestically listed foreign shares – – – – – – – – –
3. Overseas listed foreign shares 7,447,576,912 40.90 – – – – – 7,447,576,912 40.90
4. Others – – – – – – – – –
Subtotal 18,210,234,607 100.00 – – – – – 18,210,234,607 100.00
III. Total number of shares 18,210,234,607 100.00 – – – – – 18,210,234,607 100.00

SHAREHOLDERS’ INFORMATION
Number of Shareholders
Unit: Shareholder June 30, 2024

Total number of shareholders 909,331 (including 905,085 domestic shareholders)

82 Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd.

Shareholdings of Top Ten Shareholders as at the End of the Reporting Period
Number of Number of
Shareholding Total number Changes during the selling-restricted pledged, marked
percentage of shares held Reporting Period shares held or frozen
Name of shareholder Nature of shareholder(1) (%) (shares) (shares) Type of shares (shares) shares (shares)

Hong Kong Securities Clearing Company Overseas legal person 38.26 6,966,786,564 (3) +100,965 H Share – Unknown
Nominees Limited(2)
Shenzhen Investment Holdings Co., Ltd. State-owned legal person 5.29 962,719,102 – A Share – 67,550,000
pledged shares
Hong Kong Securities Clearing Company Others 3.18 578,422,247 +92,633,107 A Share – –
Limited(4)
China Securities Finance Corporation Limited Others 3.01 547,459,258 – A Share – –
Central Huijin Asset Management Ltd. State-owned legal person 2.58 470,302,252 – A Share – –
Business Fortune Holdings Limited Overseas legal person 2.52 459,466,189 -369,891 H Share – 385,136,584
pledged shares
Long-term Service Plan of Ping An Insurance Others 1.93 350,550,894 -355,869 A Share – –
(Group) Company of China, Ltd.(5)
Shum Yip Group Limited State-owned legal person 1.42 257,728,008 – A Share – –
Dacheng Fund – Agricultural Bank of China Others 1.11 201,948,582 – A Share – –

CORPORATE GOVERNANCE
– Dacheng Zhongzheng Financial Asset
Management Plan
Huaxia Fund – Agricultural Bank of China Others 1.10 199,511,462 – A Share – –
– Huaxia Zhongzheng Financial Asset
Management Plan
Notes: (1) Nature of the holders of A shares represents the nature of accounts held by the holders of A shares registered on the
Shanghai Branch of China Securities Depository and Clearing Corporation Limited.
(2) Hong Kong Securities Clearing Company Nominees Limited (“HKSCC Nominees Limited”) is the nominee holder of the shares
held by non-registered H shareholders of the Company.
(3) Business Fortune Holdings Limited is an indirect wholly-owned subsidiary of CP Group Ltd., and the shares owned by Business
Fortune Holdings Limited have been registered under the name of HKSCC Nominees Limited. In order to avoid double
counting, the shares owned by Business Fortune Holdings Limited have been deducted from the shares held by HKSCC
Nominees Limited.
(4) The shares held by Hong Kong Securities Clearing Company Limited refer to the shares held by non-registered shareholders of
the Northbound Trading of the Shanghai-Hong Kong Stock Connect Program.
(5) Participants in the Long-term Service Plan of the Company are the employees of the Company and its subsidiaries. Over
140,000 employees have participated in the Long-term Service Plan cumulatively throughout the years. The source of funding is
the remunerations payable to employees.
(6) The above A shareholders do not participate in securities margin trading or securities lending.

Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd. 83

 Changes in the Share Capital and
Shareholders’ Profile

Explanation of the connected relationship or acting-in-concert relationship among the above shareholders:

Business Fortune Holdings Limited is an indirect wholly-owned subsidiary of CP Group Ltd. CP Group
Ltd. indirectly held 964,427,077 H shares of the Company, representing approximately 5.30% of the total
share capital of the Company as of June 30, 2024, through Business Fortune Holdings Limited and other
subsidiaries.

Save as disclosed above, the Company is not aware of any connected relationship or acting-in-concert
relationship among the above-mentioned shareholders.

Voting delegation, delegated voting right or waiver of voting right regarding the top ten shareholders:

The Company is not aware of any voting delegation, delegated voting right or waiver of voting right
regarding the above-mentioned shareholders.

Particulars of Controlling Shareholder and De Facto Controlling Party

The shareholding structure of the Company is relatively scattered. There is neither controlling shareholder
nor de facto controlling party.

84 Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd.

Directors, Supervisors, Senior
Management and Employees

APPOINTMENT OR REMOVAL OF DIRECTORS, SUPERVISORS AND SENIOR MANAGEMENT

Name Position Gender Age Period of appointment

Guo Shibang(1) Newly-appointed Senior Management Male 59 Since March 2024

Yao Jason Bo(2) Retired Non-executive Director Male 53 June 2009 – May 2024
Tan Sin Yin(2) Retired Non-executive Director Female 47 April 2020 – May 2024
Notes: (1) Mr. Guo Shibang took office as an Assistant President and the Chief Risk Officer of the Company on March 26, 2024.
(2) Mr. Yao Jason Bo and Ms. Tan Sin Yin retired as Non-executive Directors of the Company on May 30, 2024.

SHAREHOLDINGS OF DIRECTORS, SUPERVISORS AND SENIOR MANAGEMENT

Change in the Number of Shares Held in the Company
As of June 30, 2024, the interests of the Company’s current Directors, Supervisors and senior management
and those who vacated office during the Reporting Period in the Company’s shares which shall be
disclosed pursuant to the Standard No. 3 Concerning the Contents and Formats of Information Disclosed
by Listed Companies – The Contents and Formats of Interim Report issued by the CSRC, were as follows:

Number of Number of
shares held at shares held Percentage of Percentage
H/A the beginning at the end of Change Nature of total issued of total issued
Name Capacity shares of the period the period (shares) Reason for the change interest H/A shares (%) shares (%)

CORPORATE GOVERNANCE
Ma Mingzhe Beneficial owner A 2,524,802 2,922,749 + 397,947 Key Employee Share Purchase Plan Long position 0.02716 0.01605
Sun Jianyi Beneficial owner A 5,048,596 5,048,596 – – Long position 0.04691 0.02772
Xie Yonglin Beneficial owner A 942,767 1,320,296 + 377,529 Key Employee Share Purchase Plan Long position 0.01227 0.00725
Michael Guo Beneficial owner A 22,993 70,123 +47,130 Key Employee Share Purchase Plan Long position 0.00065 0.00039
Cai Fangfang Beneficial owner A 477,260 617,741 + 140,481 Key Employee Share Purchase Plan Long position 0.00574 0.00339
Fu Xin Beneficial owner A 42,474 78,509 + 36,035 Key Employee Share Purchase Plan Long position 0.00073 0.00043
Yang Xiaoping Beneficial owner H 100,000 100,000 – – Long position 0.00134 0.00055
Wang Zhiliang Beneficial owner A 76,840 87,756 + 10,916 Key Employee Share Purchase Plan Long position 0.00082 0.00048
Huang Baoxin Beneficial owner A 114,707 136,744 + 22,037 Key Employee Share Purchase Plan Long position 0.00127 0.00075
Sheng Ruisheng Beneficial owner A 453,412 551,948 + 98,536 Key Employee Share Purchase Plan Long position 0.00513 0.00303
Zhang Zhichun Beneficial owner A 106,370 122,304 + 15,934 Key Employee Share Purchase Plan Long position 0.00114 0.00067
Zhang Xiaolu Beneficial owner A 46,535 118,123 + 71,588 Key Employee Share Purchase Plan Long position 0.00110 0.00065
Beneficial owner H 10,000 10,000 – – Long position 0.00013 0.00005
Deng Bin Beneficial owner A 5,328 19,083 + 13,755 Key Employee Share Purchase Plan Long position 0.00018 0.00010
Huang Yuqiang Beneficial owner A – 4,518 + 4,518 Key Employee Share Purchase Plan Long position 0.00004 0.00002
Yao Jason Bo Beneficial owner A 837,826 1,004,620 + 166,794 Key Employee Share Purchase Plan Long position 0.00933 0.00552
Beneficial owner H 24,000 24,000 – – Long position 0.00032 0.00013
Tan Sin Yin Beneficial owner A 714,249 950,293 + 236,044 Key Employee Share Purchase Plan Long position 0.00883 0.00522
Beneficial owner H 40,000 40,000 – – Long position 0.00054 0.00022

Note: During the Reporting Period, there were no share options held by or restricted shares granted to the current Directors, Supervisors
and senior management of the Company and those who vacated office during the Reporting Period.

Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd. 85

 Directors, Supervisors, Senior
Management and Employees

Save as disclosed above, as of June 30, 2024, the interests and short positions of the Company’s Directors,
Supervisors and chief executives in the Company’s shares, underlying shares and debentures which shall
have been notified to the Company and the SEHK pursuant to Divisions 7 and 8 of Part XV of the SFO
(including interests and short positions which the Company’s Directors, Supervisors or chief executives are
taken as or deemed to have under such provisions of the SFO), or are recorded in the register required to
be kept by the Company pursuant to Section 352 of the SFO, or are otherwise required to be notified by
the Directors, Supervisors and chief executives to the Company and the SEHK pursuant to the Model Code,
were as follows:

Interests Interests Percentage

held at the held at of total Percentage
beginning the end of issued of total
H/A of the period the period Change Reason for Nature of H/A shares issued shares
Name Capacity shares (shares) (shares) (shares) the change interest (%) (%)

Ma Mingzhe Interest of his spouse H 20,000 20,000 – – Long position 0.00027 0.00011
Others(1) A 1,631,038 1,631,038 – – Long position 0.01515 0.00896
Sun Jianyi Others(1) A 126,381 126,381 – – Long position 0.00117 0.00069
Xie Yonglin Others(1) A 1,223,278 1,223,278 – – Long position 0.01137 0.00672
Michael Guo Others(1) A 103,368 103,368 – – Long position 0.00096 0.00057
Cai Fangfang Others(1) A 815,519 815,519 – – Long position 0.00758 0.00448
Wang Zhiliang Others(1) A 92,334 92,334 – – Long position 0.00086 0.00051

Note: (1) Conditional interests that can be vested in future under the Long-term Service Plan, subject to terms and conditions in the
Long-term Service Plan of Ping An Insurance (Group) Company of China, Ltd.

Number of Shares Held in Associated Corporations of the Company

Percentage
Interests Interests of total
held at the held at issued shares
beginning the end of in associated
of the period the period Change Reason for Nature of corporation
Name Associated corporation Capacity (shares) (shares) (shares) the change interest (%)

Xie Yonglin Ping An Bank Beneficial owner 26,700 26,700 – – Long position 0.00014

Save as disclosed above, as of June 30, 2024, none of the Company’s Directors, Supervisors and chief
executives held or was deemed to hold any interests or short positions in the shares, underlying shares
or debentures of the Company’s associated corporations (as defined in the SFO), which shall have been
notified to the Company and the SEHK pursuant to Divisions 7 and 8 of Part XV of the SFO, or are recorded
in the register required to be kept under Section 352 of the SFO, or are otherwise required to be notified by
the Directors, Supervisors and chief executives to the Company and the SEHK pursuant to the Model Code.

86 Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd.

CHANGES IN INFORMATION OF DIRECTORS, SUPERVISORS AND CHIEF EXECUTIVES
1. Mr. Xie Yonglin, an Executive Director of the Company, took office as a Non-executive Director of Ping
An Asset Management in March 2024.

2. Mr. Ng Sing Yip, an Independent Non-executive Director of the Company, ceased to be an

Independent Non-executive Director of Hang Seng Bank Limited in May 2024.

3. Mr. Hung Ka Hai Clement, an Independent Supervisor of the Company, took office as an Independent
Non-executive Director of Capital Estate Limited in April 2024.

4. Mr. Liew Fui Kiang, an Independent Supervisor of the Company, ceased to be an Independent
Non-executive Director of Gilston Group Limited (previously known as China Apex Group Limited) in
June 2024.

5. Mr. Wang Zhiliang, an Employee Representative Supervisor of the Company, ceased to be a Director
and the Chairman of Ping An Financial Leasing in June 2024.

6. Mr. Michael Guo, a Co-CEO and a Senior Vice President of the Company, took office as a Non-
executive Director of Ping An Life and Ping An Property & Casualty in May 2024 and August 2024,

CORPORATE GOVERNANCE
respectively.

Save as disclosed above, there is no other information required to be disclosed pursuant to Rule 13.51B(1)
of the SEHK Listing Rules.

EMPLOYEES
As of June 30, 2024, there has been no material change to the information disclosed in the Company’s 2023
Annual Report relating to the number of Ping An’s current employees.

Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd. 87

 Significant Events

IMPLEMENTATION OF PROFIT DISTRIBUTION PLAN DURING THE REPORTING PERIOD

The 2023 profit distribution plan of the Company was deliberated and approved at the 2023 Annual General
Meeting, pursuant to which the Company paid in cash the 2023 final dividend of RMB1.50 (tax inclusive) per
share, totaling RMB27,161,462,992.50 (tax inclusive) based on 18,107,641,995 shares, the actual number of shares
entitled to the dividend distribution (exclusive of A shares of the Company in the repurchased securities
account). As of the date of this Report, the implementation of the distribution plan had been completed.

INTERIM RESULTS AND PROFIT DISTRIBUTION

The Group’s business results for the first half of 2024 are set out in the section headed “FINANCIAL
STATEMENTS.”

The Board of Directors hereby declares that the 2024 interim dividend of RMB0.93 (tax inclusive) per
share in cash will be distributed to the shareholders of the Company. Pursuant to the Shanghai Stock
Exchange’s Guidelines for Self-regulation of Listed Companies No.7 – Repurchase of Shares and other
applicable regulations, the Company’s A shares in the Company’s repurchased securities account after
trading hours on the record date of A shareholders will not be entitled to the interim dividend distribution.
The actual total amount of the interim dividend distribution is subject to the total number of shares that
will be entitled to the dividend distribution on the record date. The total amount of the interim dividend
distribution in 2024 is estimated at RMB16,840,107,055.35 (tax inclusive) based on the total share capital of
18,210,234,607 shares less the 102,592,612 A shares of the Company in the repurchased securities account as of
June 30, 2024. The interim dividend distribution will have no material impact on the Group’s solvency margin
ratios. After the interim dividend distribution, the Group’s solvency margin ratios will still meet the relevant
regulatory requirements.

The decision-making procedures and mechanisms of the above profit distribution plans are complete, and
the dividend payout standards and ratios are clear. The above profit distribution plans are in line with the
Articles of Association and the applicable deliberation procedures, with full protection for the legitimate
interests of minority shareholders.

GENERAL ANALYSIS OF EXTERNAL INVESTMENT

The Company is an integrated financial services group, and investment is one of its core businesses. The
investment of insurance funds represents the major part of the Company’s investment. The utilization of
insurance funds is subject to applicable laws and regulations. For details of the asset allocation of the
Company’s insurance funds investment portfolio, please refer to the section headed “Business Analysis.”

Material Equity Investment

During the Reporting Period, there was no material equity investment that shall be disclosed.

Material Non-Equity Investment

During the Reporting Period, there was no material non-equity investment that shall be disclosed.

Financial Instruments Measured at Fair Value

The Company’s financial instruments measured at fair value are detailed in Note 40 to the financial
statements.

SALE OF MAJOR ASSETS AND EQUITIES

During the Reporting Period, there was no sale of major assets and equities that shall be disclosed.

88 Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd.

Material Acquisitions and Disposals of Subsidiaries, Joint Ventures or Associates
A consortium formed by Zhuhai Huafa Group Co., Ltd. (“Huafa Group” representing the state-owned
enterprises of Zhuhai Municipality), the Company, and Shenzhen SDG Co., Ltd. participated in the
substantive consolidated restructuring (the “Founder Group Restructuring”) of Peking University Founder
Group Company Limited, Peking University Founder Information Industry Group Co., Ltd., PKU Healthcare
Industry Group Co., Ltd., Peking University Resources Group Limited, and Founder Industry Holdings Co.,
Ltd. (collectively the “Restructuring Entities”). Ping An Life participated on behalf of the Company in the
Founder Group Restructuring, and entered into a restructuring investment agreement for the Founder
Group Restructuring (the “Restructuring Investment Agreement”). The Restructuring Plan (Draft) of Five
Companies Including Peking University Founder Group Company Limited, which was formulated on the
basis of the Restructuring Investment Agreement, was resolved and approved at the creditors’ meeting
held by the Restructuring Entities, and was approved by the civil order of the First Intermediate People’s
Court of Beijing Municipality and came into effect on June 28, 2021.

In accordance with the terms of the Restructuring Investment Agreement and the selection of the debt
repayment plan by the creditors of the Restructuring Entities, New Founder Group is held as to 66.51% and
28.50% by Ping An Life and Huafa Group (representing the state-owned enterprises of Zhuhai Municipality)
through their shareholding platforms respectively, and a 4.99% equity interest in New Founder Group is
held by the equity interest platform of Founder Group’s creditors. New Founder Group has completed

CORPORATE GOVERNANCE
corresponding change of business registration procedures.

For more information, please refer to the announcements published by the Company on the websites of
SSE (www.sse.com.cn) and HKEX (www.hkexnews.hk).

MAJOR SUBSIDIARIES AND ASSOCIATES OF THE COMPANY

The Company’s major subsidiaries and associates are detailed in Note 3 and Note 26 to the financial
statements respectively.

Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd. 89

 Significant Events

IMPLEMENTATION OF SHARE PURCHASE PLANS OF THE COMPANY

To align the interests of shareholders, the Company and employees, improve corporate governance, and
establish and improve long-term incentive and restraint mechanisms, the Company has adopted the Key
Employee Share Purchase Plan and the Long-term Service Plan. Total shares cumulatively held by the Key
Employee Share Purchase Plan and the Long-term Service Plan do not exceed 10% of the Company’s total
share capital. Total shares corresponding to the equity interest cumulatively vested in a single employee
of the Company through the Key Employee Share Purchase Plan and the Long-term Service Plan do not
exceed 1% of the Company’s total share capital.

Key Employee Share Purchase Plan

The Company has implemented the Key Employee Share Purchase Plan, which has a duration of six years,
since 2015 as deliberated at the 16th meeting of the ninth Board held on October 28, 2014 and approved at
the first extraordinary general meeting for 2015 held on February 5, 2015. The duration of the Key Employee
Share Purchase Plan has been extended by six years to February 4, 2027 as deliberated at the 13th meeting
of the 11th Board held on April 23, 2020. Participants in the Key Employee Share Purchase Plan are key
employees of the Company and its subsidiaries, including directors, employee representative supervisors
and senior management. The sources of funding are the employees’ legitimate incomes and performance
bonuses. The amount that must be paid for each share by participants in the Key Employee Share Purchase
Plan is the market price of such share at the time of purchase by the Company.

Ten phases of the Key Employee Share Purchase Plan were implemented as of the end of the Reporting
Period. Shares under each phase are subject to a one-year lock-up period after the purchase. After the
lock-up period expires, one third of the shares for each phase are unlocked each year and vested in phases
in accordance with the Key Employee Share Purchase Plan. All the shares under the six phases for 2015-2020
were unlocked, and the four phases for 2021-2024 were implemented as follows:

There were 1,754 participants in the Key Employee Share Purchase Plan for 2021. A total of 9,162,837 A
shares of the Company were purchased in the secondary market at market prices for a total amount of
RMB670,258,495.86 (expenses inclusive), accounting for approximately 0.050% of the Company’s total share
capital at that time. During the Reporting Period, in accordance with the Key Employee Share Purchase
Plan and applicable agreed rules, 1,393 employees qualified and 92 employees did not qualify for vesting
under this phase. For the duration, 98,263 shares were forfeited.

There were 1,703 participants in the Key Employee Share Purchase Plan for 2022. A total of 12,518,547 A
shares of the Company were purchased in the secondary market at market prices for a total amount of
RMB595,602,067.09 (expenses inclusive), accounting for approximately 0.068% of the Company’s total share
capital at that time. During the Reporting Period, in accordance with the Key Employee Share Purchase
Plan and applicable agreed rules, 1,514 employees qualified and 87 employees did not qualify for vesting
under this phase. For the duration, 313,209 shares were forfeited.

There were 3,095 participants in the Key Employee Share Purchase Plan for 2023. A total of 15,030,180 A
shares of the Company were purchased in the secondary market at market prices for a total amount of
RMB693,562,104.08 (expenses inclusive), accounting for approximately 0.082% of the Company’s total share
capital at that time. During the Reporting Period, in accordance with the Key Employee Share Purchase
Plan and applicable agreed rules, 2,909 employees qualified and 186 employees did not qualify for vesting
under this phase. For the duration, 780,200 shares were forfeited.

90 Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd.

There were 2,207 participants in the Key Employee Share Purchase Plan for 2024. A total of 13,606,921 A
shares of the Company were purchased in the secondary market at market prices for a total amount of
RMB583,805,974.96 (expenses inclusive), accounting for approximately 0.075% of the Company’s total share
capital at that time. For details of the share purchase, please refer to the Announcement Regarding
the Completion of Share Purchase under the 2024 Key Employee Share Purchase Plan published by the
Company on the websites of the Hong Kong Exchanges and Clearing Limited (the “HKEX”) and the
Shanghai Stock Exchange (the “SSE”) on June 14, 2024 and June 15, 2024 respectively. During the Reporting
Period, no change was made in equity under the Key Employee Share Purchase Plan for 2024.

The manager of the Key Employee Share Purchase Plan remained unchanged during the Reporting Period.

The Key Employee Share Purchase Plan held a total of 27,067,120 A shares of the Company as at the end
of the Reporting Period, accounting for approximately 0.149% of the Company’s total share capital at that
time.

The Long-term Service Plan

The Company has implemented the Long-term Service Plan, which has a duration of ten years, since 2019
as deliberated at the third meeting of the 11th Board held on October 29, 2018 and approved at the second
extraordinary general meeting for 2018 held on December 14, 2018. Participants in the Long-term Service

CORPORATE GOVERNANCE
Plan are the employees of the Company and its subsidiaries, including directors, employee representative
supervisors and senior management. The source of funding is the remunerations payable to employees. The
amount that must be paid for each share by participants in the Long-term Service Plan is the market price
of such share at the time of purchase by the Company. Participants in the Long-term Service Plan may
apply for vesting only when they are retiring from the Company, and will be awarded the shares after their
applications have been approved and relevant taxes have been paid.

Five phases of the Long-term Service Plan were implemented as of the end of the Reporting Period:

There were 31,026 participants in the Long-term Service Plan for 2019. A total of 54,294,720 A shares
of the Company were purchased in the secondary market at market prices for a total amount of
RMB4,296,112,202.60 (expenses inclusive), accounting for approximately 0.297% of the Company’s total share
capital at that time. During the Reporting Period, in accordance with the Long-term Service Plan and
applicable agreed rules, 43 employees qualified and applied for vesting, and their shares were vested; 481
employees were disqualified due to reasons including their resignation; and 880,560 shares were forfeited
due to reasons including employees’ resignation or failure to meet performance targets.

There were 32,022 participants in the Long-term Service Plan for 2020. A total of 49,759,305 A shares
of the Company were purchased in the secondary market at market prices for a total amount of
RMB3,988,648,517.41 (expenses inclusive), accounting for approximately 0.272% of the Company’s total share
capital at that time. During the Reporting Period, in accordance with the Long-term Service Plan and
applicable agreed rules, 24 employees qualified and applied for vesting, and their shares were vested; 569
employees were disqualified due to reasons including their resignation; and 945,365 shares were forfeited
due to reasons including employees’ resignation or failure to meet performance targets.

There were 90,960 participants in the Long-term Service Plan for 2021. A total of 57,368,981 A shares
of the Company were purchased in the secondary market at market prices for a total amount of
RMB4,184,093,674.69 (expenses inclusive), accounting for approximately 0.314% of the Company’s total share
capital at that time. During the Reporting Period, in accordance with the Long-term Service Plan and
applicable agreed rules, 9 employees qualified and applied for vesting, and their shares were vested; 2,517
employees were disqualified due to reasons including their resignation; and 1,535,393 shares were forfeited
due to reasons including employees’ resignation or failure to meet performance targets.

Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd. 91

 Significant Events

There were 90,960 participants in the Long-term Service Plan for 2022. A total of 93,314,482 A shares
of the Company were purchased in the secondary market at market prices for a total amount of
RMB4,438,825,366.37 (expenses inclusive), accounting for approximately 0.510% of the Company’s total share
capital at that time. During the Reporting Period, in accordance with the Long-term Service Plan and
applicable agreed rules, 10 employees qualified and applied for vesting, and their shares were vested; 3,368
employees were disqualified due to reasons including their resignation; and 3,071,041 shares were forfeited
due to reasons including employees’ resignation or failure to meet performance targets.

There were 83,651 participants in the Long-term Service Plan for 2023. A total of 96,608,364 A shares
of the Company were purchased in the secondary market at market prices for a total amount of
RMB4,450,946,615.20 (expenses inclusive), accounting for approximately 0.528% of the Company’s total share
capital at that time. During the Reporting Period, in accordance with the Long-term Service Plan and
applicable agreed rules, 5 employees qualified and applied for vesting, and their shares were vested; 3,814
employees were disqualified due to reasons including their resignation; and 3,864,204 shares were forfeited
due to reasons including employees’ resignation or failure to meet performance targets.

The manager of the Long-term Service Plan remained unchanged during the Reporting Period.

The Long-term Service Plan held a total of 350,550,894 A shares of the Company as at the end of the
Reporting Period, accounting for approximately 1.925% of the Company’s total share capital.

The Company has operated stably and healthily since the implementation of the Key Employee Share
Purchase Plan and the Long-term Service Plan. The shareholders, the Company and the employees
have shared benefits and risks, providing the strong foundations for further improving the Company’s
governance structure, establishing and strengthening long-term incentive and restraint mechanisms, and
facilitating the long-term, sustainable and healthy development of the Company.

IMPLEMENTATION OF SHARE INCENTIVE SCHEME OF THE COMPANY AND ITS EFFECTS

The Company did not implement any share incentive scheme based on the Company’s shares during the
Reporting Period.

CONNECTED TRANSACTIONS
In respect of connected transactions and continuing connected transactions, the Company has complied
with requirements under the SEHK Listing Rules as amended from time to time. During the Reporting
Period, the Company had no connected transaction that shall be disclosed under the SEHK Listing Rules.
The Company’s related party transactions stated in accordance with the accounting standards used in the
preparation of financial statements for the six months ended June 30, 2024 are presented in Note 43 to the
financial statements.

92 Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd.

MATERIAL CONTRACTS AND THEIR PERFORMANCE
Guarantee
External guarantee of the Company and its subsidiaries
(in RMB million) (excluding the guarantee in favor of its subsidiaries)

Total external guarantee incurred during the Reporting Period –

Total external guarantee balance as at the end of the Reporting Period –

Guarantee of the Company and its subsidiaries in favor of its subsidiaries

Total guarantee in favor of its subsidiaries incurred during the Reporting Period 267
Total guarantee balance in favor of its subsidiaries as at the end of the Reporting Period 9,029

Total guarantee of the Company

(including the guarantee in favor of its subsidiaries)

Total guarantee 9,029

Total guarantee as a percentage of the Company’ s net assets (%) 1.0
Including: Direct or indirect guarantee for the companies with a total liabilities to

CORPORATE GOVERNANCE
total assets ratio over 70% (as of June 30, 2024) 8,303
The amount by which the total guarantee balance of the Company and its
subsidiaries exceeded 50% of the Company’ s net assets –
Notes: (1) The data set out in the table above does not include those arising from financial guarantee businesses conducted by the
Company’s controlled subsidiaries including Ping An Bank in strict compliance with the scope of business approved by
regulatory authorities.
(2) The total guarantee incurred during the Reporting Period was the guarantee withdrawal of RMB783 million less the guarantee
repayment of RMB516 million.

Entrustment, Underwriting, Lease, Entrusted Asset Management, Entrusted Lending and Other Material
Contracts
During the Reporting Period, the Company had no matter relating to entrustment, underwriting, lease or
other material contracts that shall be disclosed.

The Company engaged in no entrusted asset management or entrusted lending outside its ordinary
business scope during the Reporting Period. For details of the Company’s entrusted asset management and
entrusted lending, refer to the “Notes to Consolidated Financial Statements.”

SEIZURE, DISTRAINMENT OR FREEZE OF MAJOR ASSETS

During the Reporting Period, the Company had no event of seizure, distrainment or freeze of major assets
that shall be disclosed.

MATERIAL LITIGATION AND ARBITRATION

During the Reporting Period, the Company had no material litigation or arbitration that shall be disclosed.

CHANGES IN ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES, OR CORRECTIONS OF MATERIAL

ACCOUNTING ERRORS
During the Reporting Period, there was no change in accounting policies, material change in accounting
estimates, or correction of material accounting errors made by the Company.

Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd. 93

 Significant Events

FOREIGN EXCHANGE RISK

Foreign currency-denominated assets held by the Group are exposed to foreign exchange risks. These
assets include monetary assets and non-monetary assets, such as cash and deposits, bonds, stocks and
funds denominated in foreign currencies. The Group’s foreign currency-denominated liabilities are also
exposed to risks as a result of fluctuations in exchange rates. These liabilities include monetary liabilities
and non-monetary liabilities, such as borrowings, customers’ deposits, bonds payable and insurance
contract liabilities denominated in foreign currencies.

The Group formulates its allocation strategies for assets including foreign currency assets based on the
Company’s risk appetite, risk profiles of the asset classes, and stress test results. Through measures
including limits management, risk diversification and hedging, the Group keeps foreign exchange risk under
control by continuously optimizing the aggregate foreign currency-denominated assets and liabilities as
well as their structures, enhancing overseas asset management, and monitoring the indicator of sensitivity
to foreign exchange risk.

The sensitivity to foreign exchange risk is calculated by assuming a simultaneous and uniform depreciation
of 5% against the Renminbi of all foreign currency-denominated monetary assets and liabilities, as well as
non-monetary assets and liabilities measured at fair value as illustrated in the table below:

June 30, 2024 Increase/(decrease)

(in RMB million) in equity before tax

Net exposure to fluctuations in exchange rates assuming a simultaneous and uniform

depreciation of 5% of all foreign currency-denominated monetary assets and liabilities
and non-monetary assets and liabilities measured at fair value against the Renminbi (6,871)

If the above currencies appreciate by the same proportion, the appreciation will have an inverse effect of
the same amount on equity before tax in the table.

ENGAGEMENT OF ACCOUNTING FIRMS

According to the resolution passed at the Company’s 2023 Annual General Meeting, the Company re-
appointed Ernst & Young Hua Ming LLP and Ernst & Young (“E&Y”) as the auditors of the Company’s
financial statements under CAS and IFRS respectively for the year 2024. The Company’s interim financial
reports are unaudited.

PENALTIES AND RECTIFICATION

During the Reporting Period, neither the Company nor its Directors, Supervisors or senior management
were investigated or subjected to coercive measures by competent authorities, detained by disciplinary
inspection and supervisory authorities, transferred to judicial authorities or held accountable for criminal
liabilities, investigated or subjected to administrative punishment by the CSRC, subjected to major
administrative punishment by other competent authorities, or subjected to disciplinary action by any
securities exchanges.

INTEGRITY CONDITIONS OF THE COMPANY

The Company had neither failure to abide by any effective judicial ruling, nor default on any substantial
debt due during the Reporting Period.

PURCHASE, SALE OR REDEMPTION OF LISTED SECURITIES OF THE COMPANY

Neither the Company nor any of its subsidiaries purchased, sold or redeemed any of the Company’s listed
securities or sold any of the Company’s treasury shares during the six months from January 1, 2024 to June
30, 2024.

94 Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd.

CORPORATE GOVERNANCE
The Company implemented corporate governance measures in strict accordance with the applicable laws,
including the Company Law of the People’s Republic of China, the Securities Law of the People’s Republic
of China, the applicable regulations, and the principles set out in the Corporate Governance Code, taking
into account the Company’s specific needs and circumstances. The general meetings of shareholders, the
Board of Directors, the Supervisory Committee and the Executive Committee of the Company exercised
their rights and performed their obligations conferred by the Articles of Association, respectively.

General Meetings
The general meeting established and expanded effective channels for communication between the
Company and the shareholders, and assured shareholders’ information rights, participation rights and
voting rights on significant events of the Company through listening to their opinions and advice. During
the Reporting Period, the notice, convocation and procedures for convening and voting at the general
meeting were in accordance with the requirements of the Company Law of the People’s Republic of China
and the Articles of Association.

The annual general meeting of the Company for 2023 held on May 30, 2024 deliberated and approved 12
proposals including the Report of the Board of Directors of the Company for the Year 2023, the Report
of the Supervisory Committee of the Company for the Year 2023, the Annual Report of the Company for

CORPORATE GOVERNANCE
the Year 2023 and its summary, the Report on Final Accounts of the Company for the Year 2023, the Profit
Distribution Plan of the Company for the Year 2023, the Re-appointment of Auditors of the Company for the
Year 2024 and the Election of Non-independent Directors of the 13th Session of the Board of Directors. The
resolutions of the above general meeting have been published on the websites of SSE (www.sse.com.cn)
and HKEX (www.hkexnews.hk).

Audit and Risk Management Committee

The Board of Directors of the Company has established the Audit and Risk Management Committee
according to the Corporate Governance Code. The Audit and Risk Management Committee and the
management have reviewed the accounting standards and practices adopted by the Company and
discussed internal control and financial reporting matters, including reviewing the Company’s unaudited
interim report.

Compliance with the Corporate Governance Code

None of the Directors is aware of any information that would reasonably indicate that the Company did not
meet the applicable Code Provisions set out in the Corporate Governance Code for any part of the six-
month period from January 1, 2024 to June 30, 2024.

Compliance with the Model Code by Directors and Supervisors of the Company
In August 2007, the Company adopted a code of conduct regarding securities transactions by Directors and
Supervisors of the Company (“Code of Conduct”), which was amended in August 2022, on terms no less
exacting than the required standard as set out in the Model Code. Specific inquiries have been made to all
the Directors and Supervisors of the Company, who have confirmed that they complied with the required
standards set out in the Model Code and the Code of Conduct for the six-month period from January 1,
2024 to June 30, 2024.

INFORMATION OF TAX DEDUCTION FOR HOLDERS OF LISTED SECURITIES

Enterprise Income Tax of Overseas Non-Resident Enterprise Shareholders
Pursuant to the tax laws and regulations of the Chinese mainland, the Company is required to withhold
10% enterprise income tax when it distributes dividends to non-resident enterprise holders of H shares as
listed on the Company’s register of members on the record date, including Hong Kong Securities Clearing
Company Nominees Limited.

Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd. 95

 Significant Events

If any resident enterprise (as defined in the Enterprise Income Tax Law of the People’s Republic of China)
listed on the Company’s register of members of H shares on the record date which is duly incorporated in
the Chinese mainland or under the laws of an overseas country (or region) but with a Chinese mainland-
based de facto management body does not want the Company to withhold the said enterprise income
tax, it shall submit to Computershare Hong Kong Investor Services Limited a legal opinion, at or before
4:30 p.m. one business day before closure of register of the H shareholders for the dividend, issued by a
lawyer qualified to practice law in the Chinese mainland and inscribed with the seal of the applicable law
firm, that verifies its resident enterprise status. The legal opinion shall be submitted by the Company to
the applicable tax authorities for approval, and then excess portions of the tax amounts withheld can be
refunded.

Individual Income Tax of Overseas Individual Shareholders

Pursuant to the applicable tax laws and regulations of the Chinese mainland, the individual resident
shareholders outside the Chinese mainland shall pay individual income tax upon their receipt of the
distributed dividends in respect of the shares issued by domestic non-foreign investment enterprises in
Hong Kong, which shall be withheld by the Company on behalf of such individual shareholders at the
tax rate of 10% in general. However, if the tax laws and regulations and relevant tax agreements state
otherwise, the Company will withhold and pay the individual income tax based on the amount of the
dividend at the relevant tax rate and in accordance with the procedures as stipulated.

Those individual resident shareholders outside the Chinese mainland who hold the shares issued by
domestic non-foreign investment enterprises in Hong Kong may enjoy preferential treatments (if any) in
accordance with the provisions of applicable tax agreements signed between the countries or regions
where they belong by virtue of residential identification and the People’s Republic of China as well as the
tax arrangements made between the Chinese mainland and Hong Kong (Macao). Qualified shareholders
are required to submit to Computershare Hong Kong Investor Services Limited a written authorization and
relevant evidencing documents, at or before 4:30 p.m. one business day before closure of register of the H
shareholders for the dividend, which shall be submitted by the Company to the applicable tax authorities
for approval, and then excess portions of the tax amounts withheld can be refunded.

The Company will withhold the enterprise income tax and the individual income tax for shareholders as
required by law on the basis of the Company’s register of members of H shares on the record date. The
Company assumes no liability and will not deal with any dispute over income tax withholding triggered by
failure to submit proof materials within the stipulated time frame, and holders of the Company’s H shares
shall either personally or appoint a representative to attend to the procedures in accordance with the
applicable tax laws and regulations of the Chinese mainland.

Income Tax of H Shareholders via the Hong Kong Stock Connect Program
For the Chinese mainland investors (including enterprises and individuals) investing in the Company’s H
shares via the Hong Kong Stock Connect Program, China Securities Depository and Clearing Corporation
Limited, as the nominee holding H shares for investors via the Hong Kong Stock Connect Program, will
receive the dividend distributed by the Company and distribute such dividend to the relevant investors
through its depositary and clearing system. The dividend to be distributed to the investors via the Hong
Kong Stock Connect Program will be paid in RMB. Pursuant to the applicable tax laws and regulations of
the Chinese mainland:

• For the Chinese mainland individual investors who invest in the Company’s H shares via the Hong
Kong Stock Connect Program, the Company will withhold individual income tax at the rate of 20%
in the distribution of the dividend. Individual investors may, by producing valid tax payment proofs,
apply to the competent tax authority of China Securities Depository and Clearing Corporation Limited
for tax refund relating to the withholding tax already paid abroad.

96 Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd.

• For the Chinese mainland securities investment funds that invest in the Company’s H shares via
the Hong Kong Stock Connect Program, the Company will withhold individual income tax in the
distribution of the dividend pursuant to the above provisions.

• For the Chinese mainland enterprise investors that invest in the Company’s H shares via the Hong
Kong Stock Connect Program, the Company will not withhold income tax in the distribution of the
dividend, and such investors shall declare and pay the tax on their own.

Income Tax of A Shareholders via the Shanghai Stock Connect Program

For Hong Kong investors (including enterprises and individuals) investing in the Company’s A shares
via the Shanghai Stock Connect Program, pursuant to the applicable tax laws and regulations of the
Chinese mainland, the dividend will be paid in RMB by the Company through the Shanghai Branch of
China Securities Depository and Clearing Corporation Limited to Hong Kong Securities Clearing Company
Limited, and the Company will withhold income tax at the rate of 10%.

For investors via the Shanghai Stock Connect Program who are tax residents of other countries or regions
(excluding Hong Kong) which have entered into a tax treaty with the Chinese mainland stipulating a
dividend tax rate of less than 10%, those enterprises or individuals may, or may appoint a withholding agent
to, apply to the competent tax authorities of the Company for the entitlement to the rate under such tax

CORPORATE GOVERNANCE
treaty. Upon approval by the tax authorities, the paid amount in excess of the tax payable based on the tax
rate under such tax treaty will be refunded.

All investors are requested to read this part carefully. Shareholders are recommended to consult their tax
advisers on tax effects in the Chinese mainland, Hong Kong and other countries and regions regarding the
holding and disposal of the Company’s shares.

PROGRESS IN INTERNAL CONTROL ASSESSMENT

The Company actively implemented the spirit of the 20th National Congress of the CPC, China’s Central
Economic Work Conference and Central Financial Work Conference in the first half of 2024. In line with
various requirements of regulators, the Company continuously enhances its ability to serve the real
economy, dedicated to developing TechFin, green finance, inclusive finance, pension finance, and digital
finance. The Company effectively prevents and mitigates financial risks, comprehensively improves its rule
formulation and internal control system, and consolidates the accountability for compliant operations.
In this way, the Company continuously enhances its ability to achieve organic growth in pursuit of high-
quality financial business development.

Regarding the internal control management framework, the Company has put in place a well-structured,
well-staffed internal control system with well-defined powers and responsibilities in line with applicable
laws and regulations as well as business and risk management needs. The Board is responsible for
the establishment, improvement and effective implementation of internal controls. The Audit and Risk
Management Committee under the Board monitors and assesses the implementation of internal controls,
and coordinates internal control audits and other relevant work. The Supervisory Committee supervises
the establishment and implementation of internal controls by the Board. The Risk Management Executive
Committee under the Group’s Executive Committee (the management) formulates general targets, basic
policies and rules for risk management, and supervises operations of the risk management systems of
subsidiaries or business lines.

Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd. 97

 Significant Events

Regarding the formulation and implementation of internal control rules, the Company continuously
consolidated outcomes of the upgrade of basic management policies and procedures, adopted exacting
standards, strict accountability and firm discipline, enhanced implementation of policies and procedures,
and promoted operational compliance in the first half of 2024. Firstly, the Company embedded external
regulations in internal rules and prioritized the formulation of policies and procedures. The Company
systematically reviewed policies, rules, regulations and important regulatory documents, and internalized
them into its own policies, procedures and requirements in time to ensure internal controls are rules-
based and evidence-based. Secondly, the Company cleaned up existing policies and procedures and
planned new ones under the overall framework of its basic management policies and procedures. The
Company continuously improved a three-level framework comprising policies, procedures and guidelines,
standardized the formation of policies and procedures, and developed key processes and guidelines.
Thirdly, the Company enhanced the digital management of its policies and procedures, classifying policies
and procedures in a scientific way. The Company kept policies and procedures independent of human will
by embedding them in processes and embedding processes in systems, laying the solid foundations for
high-quality development.

Regarding internal control operations and assessment, the Company strictly complied with applicable
laws and regulations. In response to the calls of regulators at all levels for strengthening compliance
management and preventing compliance risks, the Company continuously optimized its governance
structure and strengthened internal control management. Firstly, the Company’s internal control operations
and assessment covered all businesses, focusing on the development of internal control mechanisms in
key areas. The Company adhered to the principles of comprehensiveness, materiality and objectivity in
internal control operations and assessment. The Company focused on important business units, major
matters and high-risk businesses on the basis of comprehensive and objective assessments of the Group’s
headquarters and member companies of different business types and sizes. In this way, the Company
continuously improved its internal control systems and mechanisms. Secondly, the Company linked
compliance management tools to continuously enhance the effectiveness of internal controls. The Company
strengthened linkages among compliance management tools centering on internal control processes.
The Company updated internal control processes in time according to new regulatory rules, internal
policies and procedures, and business changes to ensure compliance with regulations and company rules.
Moreover, during internal control tests, the Company conducted adequate assessments based on past
regulatory circulars, risk incidents and self-inspection findings. The Company analyzed the cruxes of issues
to eliminate potential risks and continuously improve the effectiveness of internal controls. Thirdly, the
Company conducted classified supervision to oversee the fulfillment of responsibilities for internal controls.
In accordance with internal control assessment plans and in combination with operational risk management,
the Company put forward requirements for classified supervision of its member companies, focusing on
“key business lines, processes and positions.” The Company created a list of responsibilities for issues to
oversee the fulfillment of responsibilities for internal controls. Fourthly, under an issue-oriented approach,
the Company gave full play to the role of internal controls in “addressing existing issues and preventing
potential ones.” Regarding pervasive, predisposing and emerging significant issues and deficiencies
identified in previous internal control assessments, regulatory inspections, violation risk reviews, self-
inspections and self-corrections, the Company thoroughly analyzed their backgrounds and causes, and took
strong measures to address them. With the aim of “addressing existing issues and preventing potential
ones”, the Company established long-term preventative mechanisms to better support its high-quality
development. Ernst & Young Hua Ming LLP audited the effectiveness of the Company’s internal controls
over financial reporting for 2023, and issued the Internal Control Audit Report, opining that the Company

98 Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd.

maintained effective internal controls over financial reporting in all material aspects in accordance with
the Basic Norms for Internal Controls of Enterprises and relevant rules. Regarding the monitoring of major
risks, the Company reviewed business processes and conducted risk monitoring focused on key areas.
Firstly, the Company checked the underlying risk profile by closely monitoring “key matters, personnel and
actions” in key areas and organizing risk reviews and behavior monitoring, and coordinated risk disposal
and accountability among internal parties concerned. Secondly, the Company strengthened risk governance
by thoroughly analyzing the backgrounds and root causes of risk incidents, creating risk heat maps, and
reviewing work flows. In this way, the Company drew inferences from existing incidents to prevent risk
contagion. Thirdly, the Company strengthened supervision of its member companies in early intervention
and prevention to ensure compliance with the minimum requirement of “preventing major incidents
and minimizing minor ones” and enhance their ability to tackle impacts of internal and external events.
Fourthly, the Company improved mechanisms to ensure the penetration of operational risk management
and violation prevention into branches, processes, employees (positions), products and systems, providing
important support and solid assurance for its steady development.

Regarding the management of money laundering and terrorist financing risks and sanctions compliance
(collectively the “money laundering risk”), the Company strictly abided by applicable laws and regulations,
and implemented the State’s decision to promote high-quality financial business development and prevent
and mitigate financial risks. The Company improved its ability to fulfill anti-money laundering (“AML”)

CORPORATE GOVERNANCE
responsibilities and gave full play to the role of AML in preventing risks and promoting development under
the “risk-based” principle. Firstly, in response to the State’s call to “improve the AML framework for a new
era,” the Company continuously improved AML rules on money laundering risk assessment, monitoring,
reporting and AML information systems and data management to develop more systematic, standardized
and effective money laundering risk management rules. Secondly, regarding core AML obligations, the
Company explored the establishment of an AML quality certification system for financial groups, creating
a whole process from the establishing of standards, the implementation of standards, and certification to
the application of outcomes, focusing on significant risks, major branches, important business lines, and key
employees. Moreover, the Company strengthened independent tests in key areas and conducted special
tests in information security to verify common problems among member companies and the rectification
of their root causes, promoting high-quality development of member companies’ money laundering risk
management. Thirdly, the Company improved AML information sharing systems, norms and platforms.
The Company developed a shared library of over one million pieces of AML risk information with core
tags of customer money laundering risks while ensuring lawfulness, compliance and information security.
In this way, the Company provided multi-dimensional risk information to help its member companies deal
with AML-related core businesses, enabling them to precisely classify customers and manage risks, and
preventing contagion of money laundering risk within the Group. Fourthly, the Company kept a close eye
on the latest sanctions policies and information, improved its sanctions compliance management rules,
optimized existing monitoring approaches and measures, conducted sanctions risk assessments, reviews
and relevant training, and strengthened whole-process management of sanctions risk monitoring to prevent
relevant risks. Fifthly, the Company actively fulfilled its social responsibilities by assisting regulators in
improving mechanisms and operations of the industry’s AML self-discipline organization, supporting the
self-discipline organization in delivering and sharing its professional work outcomes to promote AML
information exchange, cooperation and innovation in the financial industry and across industries. The
Company made contributions to an “AML safety net” by participating in projects in collaboration with
regulators and enhancing education for the public on preventing illegal fundraising in light of the current
situation of money laundering risk.

Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd. 99

 Significant Events

Regarding the management framework for internal audit and supervision, the Company established a
highly independent, vertical audit and supervision framework. The Company established the Audit and Risk
Management Committee under the Board in accordance with applicable laws and regulations concerning
the corporate governance structure and internal rules including the Articles of Association. The committee,
comprising mostly of the Independent Non-executive Directors and chaired by an Independent Non-
executive Director, is responsible for comprehensive review and supervision of the Company’s financial
reporting, internal audit and control procedures. The Company’s Person-in-charge of Auditing is responsible
for assisting the Audit and Risk Management Committee under the Board in establishing and improving
the internal audit and supervision framework, and guiding and supervising the effective implementation of
audit and supervision policies and procedures. Audit and supervision departments are led by the Person-in-
charge of Auditing. To ensure objectivity and fairness, audit and supervision departments are independent
of business operations and management departments, and are not directly involved in or responsible for
risk management or the design and implementation of internal control systems. Audit and supervision
departments organize internal control monitoring every year to independently assess whether internal
controls are robust, rational and effective and fully cover the Company’s main risk points. Audit and
supervision departments also provide forward-looking suggestions for improvement against audit findings.
The results of internal control audits are reported by the Person-in-charge of Auditing to the Audit and
Risk Management Committee under the Board, and shared with management and compliance departments.
In this way, the Company ensures that internal control deficiencies are rectified in a timely manner and that
the Company’s internal controls are robust and effective.

The Company will conduct internal control effectiveness tests, audit independence tests, and internal
control assessments as planned in the second half of 2024. Adhering to the “risk-based” principle, the
Company will specify internal control requirements for key businesses and processes, and oversee the
fulfillment of responsibilities for internal controls at each level of the organization. The Company will
supervise and strengthen internal control and compliance appraisal to enhance the effectiveness of internal
control and compliance management. The Company will supervise the implementation of internal control
and compliance requirements, and promote compliance awareness among employees through precise
education and communication. By doing so, the Company will continuously improve its internal control
management.

CORPORATE SUSTAINABILITY AND ENVIRONMENTAL PROTECTION

The Company actively fulfilled its social responsibilities, and was not a key pollutant discharging unit
designated by the environmental protection authority of the PRC during the Reporting Period. For more
information on environmental protection, please refer to the section headed “Sustainability.”

No administrative penalty was imposed on the Company due to environmental problems during the
Reporting Period.

100 Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd.
SUBSTANTIAL SHAREHOLDERS’ AND OTHER PERSONS’ INTERESTS AND SHORT POSITIONS IN SHARES
AND UNDERLYING SHARES OF THE COMPANY
As far as is known to any Directors or Supervisors of the Company, as of June 30, 2024, the following
persons (other than the Company’s Directors, Supervisors and chief executives) had interests or short
positions in the Company’s shares and underlying shares which shall be disclosed to the Company pursuant
to the provisions of Divisions 2 and 3 of Part XV of the SFO or recorded in the register required to be kept
under Section 336 of the SFO:

Percentage
of total Percentage
number of of total
H/A shares shares
Name of H/A Number of Nature of in issue in issue
substantial shareholder shares Capacity Notes H/A shares interest (%) (%)

CP Group Ltd. H Interest of controlled (1) 964,427,077 Long position 12.95 5.30
corporations

UBS Group AG H Interest of controlled (2) 583,292,650 Long position 7.83 3.20
corporations
Interest of controlled (2) Short position

CORPORATE GOVERNANCE
434,442,132 5.83 2.39
corporations

JPMorgan Chase & Co. H Interest of controlled (3) 132,188,185 Long position 1.77 0.73
corporations
Investment manager 78,693,268 Long position 1.06 0.43
Person having a security 1,538,266 Long position 0.02 0.01
interest in shares
Trustee 10,056 Long position 0.00 0.00
Approved lending agent (3) 226,946,132 Lending pool 3.05 1.25

Total: (3) 439,375,907 5.90 2.41

Interest of controlled (3) 109,496,022 Short position 1.47 0.60
corporations
Investment manager 273,321 Short position 0.00 0.00

Total: (3) 109,769,343 1.47 0.60

BlackRock, Inc. H Interest of controlled (4) 400,205,478 Long position 5.37 2.20
corporations
Interest of controlled (4) 1,190,000 Short position 0.02 0.01
corporations

Shenzhen Investment A Beneficial owner 962,719,102 Long position 8.94 5.29

Holdings Co., Ltd.

Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd. 101
 Significant Events

Notes: (1) According to the disclosure form filed by CP Group Ltd. on May 21, 2024, CP Group Ltd. was deemed to be interested in a total
of 964,427,077 H shares (long position) of the Company by virtue of its control over several wholly-owned corporations.
(2) According to the disclosure form filed by UBS Group AG on July 3, 2024, UBS Group AG was deemed to be interested in a
total of 583,292,650 H shares (long position) and 434,442,132 H shares (short position) of the Company by virtue of its controlled
corporations.
The entire interests and short positions of UBS Group AG in the Company included 387,073,182 H shares (long position) and
363,721,019 H shares (short position) held through derivatives as follows:

Derivatives Nature of interest Number of H shares

Listed derivatives – Long position 136,700

Cash settled

Listed derivatives – Long position 1,358,175

Convertible instruments Short position 13,899,390

Unlisted derivatives – Long position 343,496,919

Physically settled Short position 231,773,051

Unlisted derivatives – Long position 42,081,388

Cash settled Short position 118,048,578

(3) According to the disclosure form filed by JPMorgan Chase & Co. on June 5, 2024, JPMorgan Chase & Co. was deemed to be
interested in a total of 439,375,907 H shares (long position) and 109,769,343 H shares (short position) of the Company.
The entire interests and short positions of JPMorgan Chase & Co. in the Company included a lending pool of 226,946,132 H
shares (long position). In addition, 63,101,344 H shares (long position) and 92,324,303 H shares (short position) were held through
derivatives as follows:

Derivatives Nature of interest Number of H shares

Listed derivatives – Long position 27,586,500

Physically settled Short position 28,702,000

Listed derivatives – Long position 1,897,900

Cash settled Short position 17,325,029

Unlisted derivatives – Long position 21,493,327

Physically settled Short position 22,430,747

Unlisted derivatives – Long position 12,123,617

Cash settled Short position 23,866,527

(4) According to the disclosure form filed by BlackRock, Inc. on July 3, 2024, BlackRock, Inc. was deemed to be interested in a
total of 400,205,478 H shares (long position) and 1,190,000 H shares (short position) of the Company by virtue of its controlled
corporations.
The entire interests and short positions of BlackRock, Inc. in the Company included 2,799,000 H shares (long position) and
1,190,000 H shares (short position) held through derivatives as follows:

Derivatives Nature of interest Number of H shares

Unlisted derivatives – Long position 2,799,000

Cash settled Short position 1,190,000

(5) The percentage figures may not add up to the presented totals due to rounding. The percentage figures are based on the
number of shares of the Company as of June 30, 2024.

Save as disclosed above, to the best knowledge of the Directors and Supervisors, as of June 30, 2024, no
person (other than the Company’s Directors, Supervisors and chief executives) had any interest or short
position in the Company’s shares or underlying shares which shall be disclosed to the Company pursuant
to the provisions of Divisions 2 and 3 of Part XV of the SFO or recorded in the register required to be kept
under Section 336 of the SFO.

OTHER SIGNIFICANT EVENTS

No other significant events of the Company were required to be disclosed during the Reporting Period.

102 Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd.
EVENTS AFTER THE REPORTING PERIOD
As of June 30, 2024, the Company held a total of 41.40% equity interest in Lufax Holding through its
wholly-owned subsidiaries An Ke Technology and PAOH. Pursuant to Lufax Holding’s special dividend
plan approved at its 2023 annual general meeting, its eligible shareholders may elect to receive the special
dividend wholly in the form of new shares (the “Scrip Dividend”). An Ke Technology and PAOH elected
for the Scrip Dividend as per the special dividend plan. According to the final allotment result of Lufax
Holding’s special dividend plan, the Group’s aggregate shareholding in Lufax Holding through An Ke
Technology and PAOH increased to 56.82%, and Lufax Holding became a subsidiary of the Group with
effect from July 30, 2024. Furthermore, in accordance with the Code on Takeovers and Mergers issued by
the Securities and Futures Commission of Hong Kong, a possible mandatory unconditional general offer
would be made by An Ke Technology and PAOH (the “Mandatory General Offer”) since their aggregate
shareholding in Lufax Holding increased by more than 2% as a result of their election for the Scrip Dividend
as per the special dividend plan. Depending on the level of acceptance of the Mandatory General Offer,
the Group’s aggregate shareholding in Lufax Holding through An Ke Technology and PAOH may further
increase. The consolidation of Lufax Holding into the consolidated financial statements will not have
material impact on the Company’s financial position and operating results.

On July 16, 2024, the Company announced the proposed issue of an aggregate principal amount of USD3.5
billion 0.875% convertible bonds (convertible into the Company’s H shares) due 2029 under a general

CORPORATE GOVERNANCE
mandate, with an initial conversion price of HKD43.71 per H share (subject to adjustments). The convertible
bonds were issued on July 22, 2024 and have been listed and traded on the SEHK since July 23, 2024.

For more information, please refer to the announcements published by the Company on the websites of
SSE (www.sse.com.cn) and HKEX (www.hkexnews.hk).

Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd. 103
 Report on Review of Interim
Condensed Consolidated Financial
Information
To the shareholders of Ping An Insurance (Group) Company of China, Ltd.
(Incorporated in the People’s Republic of China with limited liability)

INTRODUCTION
We have reviewed the interim condensed consolidated financial information set out on pages 105 to
164, which comprises the interim consolidated statement of financial position of Ping An Insurance
(Group) Company of China, Ltd. (the “Company”) and its subsidiaries as at 30 June 2024 and the interim
consolidated income statement, the interim consolidated statement of comprehensive income, the interim
consolidated statement of changes in equity and the interim consolidated statement of cash flows for the
six-month period then ended, and explanatory notes. The Rules Governing the Listing of Securities on The
Stock Exchange of Hong Kong Limited require the preparation of a report on interim financial information
to be in compliance with the relevant provisions thereof and International Accounting Standard 34 Interim
Financial Reporting (“IAS 34”). The directors of the Company are responsible for the preparation and
presentation of this interim financial information in accordance with IAS 34. Our responsibility is to express
a conclusion on this interim financial information based on our review. Our report is made solely to you, as
a body, in accordance with our agreed terms of engagement, and for no other purpose. We do not assume
responsibility towards or accept liability to any other person for the contents of this report.

SCOPE OF REVIEW
We conducted our review in accordance with Hong Kong Standard on Review Engagements 2410 Review
of Interim Financial Information Performed by the Independent Auditor of the Entity issued by the Hong
Kong Institute of Certified Public Accountants. A review of interim financial information consists of making
inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and
other review procedures. A review is substantially less in scope than an audit conducted in accordance
with Hong Kong Standards on Auditing and consequently does not enable us to obtain assurance that we
would become aware of all significant matters that might be identified in an audit. Accordingly, we do not
express an audit opinion.

CONCLUSION
Based on our review, nothing has come to our attention that causes us to believe that the interim financial
information is not prepared, in all material respects, in accordance with IAS 34.

Ernst & Young

Certified Public Accountants

Hong Kong
22 August 2024

104 Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd.
Interim Consolidated Income Statement
For the six-month period ended 30 June 2024

For the six-month period ended 30 June Notes 2024 2023

(in RMB million) (Unaudited) (Unaudited)

Insurance revenue 5 274,608 269,305

Interest revenue from banking operations 6 103,908 116,427
Interest revenue from non-banking operations 7 58,060 59,708
Fees and commission revenue from non-insurance operations 8 21,114 23,903
Investment income 9 65,839 39,869
Share of profits and losses of associates and joint ventures (891) 2,309
Other revenues and other gains 10 31,459 34,613
Total revenue 554,097 546,134
Insurance service expenses 11 (218,832) (213,910)
Allocation of reinsurance premiums paid (7,513) (7,091)
Less: Amount recovered from reinsurer 5,577 5,251
Net insurance finance expenses for insurance contracts issued (79,351) (70,109)
Less: Net reinsurance finance income for reinsurance
contracts held 477 301
Interest expenses on banking operations 6 (54,602) (53,295)
Fees and commission expenses on non-insurance operations 8 (3,628) (4,368)
Net impairment losses on financial assets 12 (26,530) (35,872)
Net impairment losses on other assets (84) (393)
Foreign exchange gains/(losses) (508) 543
General and administrative expenses 13 (38,604) (40,135)
Changes in insurance premium reserves (254) (144)
Interest expenses on non-banking operations (9,074) (12,407)
Other expenses 13 (18,016) (18,555)
Total expenses (450,942) (450,184)
Profit before tax 13 103,155 95,950
Income tax 14 (14,451) (12,524)

FINANCIAL STATEMENTS
Profit for the period 88,704 83,426
Attributable to:
– Owners of the parent 74,619 69,841
– Non-controlling interests 14,085 13,585
88,704 83,426
Earnings per share attributable to ordinary equity holders
of the parent: RMB RMB

– Basic 16 4.21 3.94

– Diluted 16 4.12 3.87

Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd. 105
 Interim Consolidated Statement of Comprehensive Income
For the six-month period ended 30 June 2024

For the six-month period ended 30 June 2024 2023

(in RMB million) (Unaudited) (Unaudited)

Profit for the period 88,704 83,426

Other comprehensive income
Items that may be reclassified subsequently to profit or loss:
Changes in the fair value of debt instruments at fair value through
other comprehensive income 113,501 44,700
Credit risks provision of debt instruments at fair value through
other comprehensive income (75) 90
Insurance finance expenses for insurance contracts issued (135,033) (54,164)
Reinsurance finance income for reinsurance contracts held 302 170
Reserve from cash flow hedging instruments 318 121
Exchange differences on translation of foreign operations 333 1,720
Share of other comprehensive income of associates and joint
ventures 250 (583)
Items that will not be reclassified to profit or loss:
Changes in the fair value of equity instruments at fair value
through other comprehensive income 21,151 21,994
Insurance finance expenses for insurance contracts issued (16,227) (15,026)
Share of other comprehensive income of associates and joint
ventures 694 516
Other comprehensive income for the period, net of tax (14,786) (462)
Total comprehensive income for the period 73,918 82,964
Attributable to:
– Owners of the parent 59,595 69,339
– Non-controlling interests 14,323 13,625
73,918 82,964

106 Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd.
Interim Consolidated Statement of Financial Position
As at 30 June 2024

Notes 30 June 2024 31 December 2023

(in RMB million) (Unaudited) (Audited)

Assets
Cash and amounts due from banks and other financial
institutions 17 831,850 804,077
Balances with the Central Bank 18 302,660 270,976
Financial assets purchased under reverse repurchase
agreements 19 117,255 167,660
Accounts receivable 39,661 35,636
Derivative financial assets 51,305 44,978
Insurance contract assets 36 – 3
Reinsurance contract assets 23,314 22,215
Finance lease receivable 20 202,939 180,674
Loans and advances to customers 21 3,314,656 3,318,122
Financial assets at fair value through profit or loss 22 2,145,964 1,803,047
Financial assets at amortized cost 23 1,227,296 1,243,353
Debt financial assets at fair value through other
comprehensive income 24 2,845,591 2,637,008
Equity financial assets at fair value through other
comprehensive income 25 299,356 264,877
Investments in associates and joint ventures 26 249,628 258,877
Statutory deposits for insurance operations 27 14,986 14,903
Investment properties 122,843 121,406
Property and equipment 49,987 50,401
Intangible assets 97,651 99,078
Right-of-use assets 8,576 9,794
Deferred tax assets 99,306 101,337
Other assets 28 181,842 134,995
Total assets 12,226,666 11,583,417

FINANCIAL STATEMENTS

Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd. 107
 Interim Consolidated Statement of Financial Position
As at 30 June 2024

Notes 30 June 2024 31 December 2023

(in RMB million) (Unaudited) (Audited)

Equity and liabilities

Equity
Share capital 29 18,210 18,210
Reserves 30 248,301 263,752
Treasury shares 33 (5,001) (5,001)
Retained profits 30 669,698 622,050
Equity attributable to owners of the parent 931,208 899,011
Non-controlling interests 30 333,742 329,953
Total equity 1,264,950 1,228,964
Liabilities
Due to banks and other financial institutions 34 976,006 963,718
Financial liabilities at fair value through profit or loss 144,568 48,619
Derivative financial liabilities 44,550 44,531
Assets sold under agreements to repurchase 35 254,978 241,803
Accounts payable 7,536 8,858
Income tax payable 5,648 7,117
Insurance contract liabilities 36 4,589,750 4,159,801
Reinsurance contract liabilities 392 53
Customer deposits and payables to brokerage customers 37 3,697,182 3,534,539
Bonds payable 38 823,691 964,007
Lease liabilities 8,995 10,234
Deferred tax liabilities 14,254 14,148
Other liabilities 394,166 357,025
Total liabilities 10,961,716 10,354,453
Total equity and liabilities 12,226,666 11,583,417

MA Mingzhe XIE Yonglin

Director Director

108 Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd.
Interim Consolidated Statement of Changes in Equity
For the six-month period ended 30 June 2024

For the six-month period ended 30 June 2024 (Unaudited)

Reserves
Insurance
finance Exchange
Financial expenses differences
assets at for insurance Surplus on translation Non-
Share Share FVOCI contracts reserve General of foreign Treasury Retained controlling Total
(in RMB million) capital premium reserves issued Others funds reserves operations shares profits interests equity

As at 1 January 18,210 123,739 195,899 (214,296) 13,092 12,164 130,353 2,801 (5,001) 622,050 329,953 1,228,964
Profit for the period – – – – – – – – – 74,619 14,085 88,704
Other comprehensive income
for the period – – 133,689 (150,524) 1,497 – – 314 – – 238 (14,786)
Total comprehensive income
for the period – – 133,689 (150,524) 1,497 – – 314 – 74,619 14,323 73,918
Dividends declared (Note 15) – – – – – – – – – (27,161) – (27,161)
Appropriations to general reserves – – – – – – 349 – – (349) – –
Disposal of equity investments
at fair value through
other comprehensive income – – (962) 423 – – – – – 539 – –
Dividend paid to non-controlling
interests – – – – – – – – – – (8,520) (8,520)
Equity transactions with non-
controlling interests – – – – (123) – – – – – 111 (12)
Contributions from non-controlling
interests – – – – – – – – – – 7 7
Key Employee Share Purchase Plan
(Note 31) – – – – (314) – – – – – – (314)
Long-term Service Plan (Note 32) – – – – 267 – – – – – – 267
Other equity instruments issued/
redeemed by subsidiaries – – – – – – – – – – (2,771) (2,771)
Others – – – – (67) – – – – – 639 572

FINANCIAL STATEMENTS
As at 30 June 18,210 123,739 328,626 (364,397) 14,352 12,164 130,702 3,115 (5,001) 669,698 333,742 1,264,950

Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd. 109
 Interim Consolidated Statement of Changes in Equity
For the six-month period ended 30 June 2024

For the six-month period ended 30 June 2023 (Unaudited)

Reserves
Insurance
finance Exchange
Financial expenses differences
assets at for insurance Surplus on translation Non-
Share Share FVOCI contracts reserve General of foreign Treasury Retained controlling Total
(in RMB million) capital premium reserves issued Others funds reserves operations shares profits interests equity

As at 1 January 18,280 118,095 84,966 (84,153) 17,738 12,164 117,868 2,046 (10,996) 593,183 316,805 1,185,996
Profit for the period – – – – – – – – – 69,841 13,585 83,426
Other comprehensive income for
the period – – 66,501 (68,842) 199 – – 1,640 – – 40 (462)
Total comprehensive income for
the period – – 66,501 (68,842) 199 – – 1,640 – 69,841 13,625 82,964
Dividends declared (Note 15) – – – – – – – – – (27,161) – (27,161)
Appropriations to general reserves – – – – – – 360 – – (360) – –
Disposal of equity investments
at fair value through
other comprehensive income – – 2,556 (2,016) – – – – – (540) – –
Dividend paid to non-controlling
interests – – – – – – – – – – (4,865) (4,865)
Equity transactions with non-
controlling interests – – – – (230) – – – – – (1,285) (1,515)
Contributions from non-controlling
interests – – – – – – – – – – 20 20
Key Employee Share Purchase Plan
(Note 31) – – – – (335) – – – – – – (335)
Long-term Service Plan (Note 32) – – – – (4,237) – – – – – – (4,237)
Cancellation of repurchased shares (70) (5,925) – – – – – – 5,995 – – –
Other equity instruments issued/
redeemed by subsidiaries – – – – – – – – – – (3,202) (3,202)
Others – 11,569 – – 9 – – – – – 492 12,070
As at 30 June 18,210 123,739 154,023 (155,011) 13,144 12,164 118,228 3,686 (5,001) 634,963 321,590 1,239,735

110 Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd.
Interim Consolidated Statement of Cash Flows
For the six-month period ended 30 June 2024

For the six-month period ended 30 June Note 2024 2023

(in RMB million) (Unaudited) (Unaudited)

Net cash flows from operating activities 304,883 162,297

Cash flows from investing activities
Purchases of property and equipment, intangibles and other
long-term assets (1,794) (2,881)
Proceeds from disposal of property and equipment,
intangibles and other long-term assets, net 106 240
Proceeds from disposal of investments 929,495 1,012,810
Purchases of investments (1,177,729) (1,151,315)
Disposal of subsidiaries, net (73) 5
Interest received 75,888 71,850
Dividends received 25,610 31,415
Net cash flows used in investing activities (148,497) (37,876)
Cash flows from financing activities
Capital injected into subsidiaries by non-controlling interests 222 1,670
Proceeds from bonds issued 511,589 530,997
Increase/(decrease) in assets sold under agreements to
repurchase of insurance operations, net 40,069 (19,197)
Proceeds from borrowings 55,808 70,760
Repayment of borrowings (731,391) (622,472)
Interest paid (10,484) (13,997)
Dividends paid (8,826) (20,817)
Decrease in insurance placements from banks and other
financial institutions, net (1,700) (6,866)
Payment of shares purchased for Long-term Service Plan – (4,451)
Repayment of lease liabilities (2,328) (2,784)
Payment of redemption for other equity instruments by
subsidiaries (2,800) (4,850)

FINANCIAL STATEMENTS
Others (5,194) (12,153)
Net cash flows used in financing activities (155,035) (104,160)
Net increase in cash and cash equivalents 1,351 20,261
Net foreign exchange differences 885 4,856
Cash and cash equivalents at the beginning of the period 480,472 444,202
Cash and cash equivalents at the end of the period 42 482,708 469,319

Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd. 111
 Notes to the Interim Condensed Consolidated
Financial Information
For the six-month period ended 30 June 2024

1. CORPORATE INFORMATION
Ping An Insurance (Group) Company of China, Ltd. (the “Company”) was registered in Shenzhen, the
People’s Republic of China (the “PRC”) on 21 March 1988. The business scope of the Company includes
investing in insurance enterprises, supervising and managing various domestic and overseas businesses of
subsidiaries, conducting insurance funds investment, domestic and overseas insurance and other business
approved by regulators. The Company and its subsidiaries are collectively referred to as the Group. The
Group mainly provides integrated financial products and services and is engaged in life insurance, property
and casualty insurance, trust, securities, banking and other businesses.

The registered office address of the Company is 47th, 48th, 109th, 110th, 111th and 112th Floors, Ping An
Finance Center, No. 5033 Yitian Road, Futian District, Shenzhen, Guangdong Province, China.

2. BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES

This unaudited interim condensed consolidated financial information for the six-month period ended 30
June 2024 has been prepared in accordance with International Accounting Standard 34 Interim Financial
Reporting. The interim condensed consolidated financial information does not include all the information
and disclosures required in the annual financial statements, and should be read in conjunction with the
audited consolidated annual financial statements for the year ended 31 December 2023.

The accounting policies adopted are consistent with those of the consolidated annual financial statements
for the year ended 31 December 2023, as described in those annual financial statements.

3. CHANGES IN PRINCIPAL SUBSIDIARIES, ASSOCIATES AND JOINT

VENTURES
For the six-month period ended 30 June 2024, there was no significant change in principal subsidiaries,
associates and joint ventures of the Group.

112 Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd.
4. SEGMENT REPORTING
The segment businesses are separately presented as the insurance segment, the banking segment, the
asset management segment, the technology business segment and the other businesses, based on the
products and service offerings. The insurance segment is divided into the life and health insurance and
the property and casualty insurance segment which are in line with the nature of products, risk and asset
portfolios. The types of products and services from which reportable segments derive revenue are listed
below:

－ The life and health insurance segment offers a comprehensive range of life insurance products to
individual and corporate customers, including term, whole-life, endowment, annuity, investment-
linked, universal life and health care and medical insurance, reflecting performance summary of Ping
An Life Insurance Company of China, Ltd. (“Ping An Life”), Ping An Annuity Insurance Company of
China, Ltd. (“Ping An Annuity”) and Ping An Health Insurance Company of China, Ltd. (“Ping An Health
Insurance”)(i);

－ The property and casualty insurance segment offers a wide variety of insurance products to individual
and corporate customers, including auto insurance, non-auto insurance, accident and health insurance,
reflecting performance of Ping An Property & Casualty Insurance Company of China, Ltd. (“Ping An
Property & Casualty”);

－ The banking segment undertakes loan and intermediary business with corporate customers and retail
customers as well as wealth management and credit card services with individual customers, reflecting
performance of Ping An Bank Co., Ltd. (“Ping An Bank”);

－ The asset management segment provides trust products services, brokerage services, trading services,
investment banking services, investment management services, finance lease business and other asset
management services, reflecting performance summary of Ping An Trust Co., Ltd., Ping An Securities
Co., Ltd. (“Ping An Securities”), Ping An Asset Management Co., Ltd. and Ping An International
Financial Leasing Co., Ltd. (“Ping An Financial Leasing”) and the other asset management subsidiaries;

FINANCIAL STATEMENTS
－ The technology business segment provides various financial and daily-life services through internet
platforms such as financial transaction information service platform, health care service platform,
reflecting performance summary of the technology business subsidiaries, associates and joint ventures.

Except for the above business segments, the other segments did not have a material impact on the Group’s
operating outcome, and as such are not separately presented.

(i) The company holds a total direct and indirect shareholding of 75.01%, while DISCOVERY LIMITED holds a shareholding of 24.99%.

Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd. 113
 Notes to the Interim Condensed Consolidated
Financial Information
For the six-month period ended 30 June 2024

4. SEGMENT REPORTING (CONTINUED)

The segment analysis for the six-month period ended 30 June 2024 is as follows:

Other
Life and Property and businesses
health casualty Asset Technology and
insurance insurance Banking management business elimination Total
(in RMB million) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)

Insurance revenue 112,856 161,910 – – – (158) 274,608

Interest revenue from banking operations – – 104,129 – – (221) 103,908
Fees and commission revenue from non-insurance
operations 2,800 – 14,932 4,269 – (887) 21,114
Including: Inter-segment fees and commission
revenue from non-insurance operations (2) – 771 60 – (829) –
Interest revenue from non-banking operations 49,298 3,468 – 6,084 374 (1,164) 58,060
Including: Inter-segment interest revenue from
non-banking operations 41 17 – 1,342 34 (1,434) –
Investment income 43,635 5,142 14,693 2,982 388 (1,001) 65,839
Including: Inter-segment investment income 2,241 215 (8) 23 – (2,471) –
Including: Operating lease income from
investment properties 4,078 280 30 26 – (710) 3,704
Share of profits and losses of associates and joint
ventures 1,985 301 – (450) (566) (2,161) (891)
Other revenues and other gains 17,118 445 320 14,057 8,290 (8,771) 31,459
Including: Inter-segment other revenues 4,860 26 7 1,337 2,307 (8,537) –
Including: Non-operating gains 261 85 20 24 3 – 393
Total revenue 227,692 171,266 134,074 26,942 8,486 (14,363) 554,097

114 Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd.
4. SEGMENT REPORTING (CONTINUED)
The segment analysis for the six-month period ended 30 June 2024 is as follows (continued):

Other
Life and Property and businesses
health casualty Asset Technology and
insurance insurance Banking management business elimination Total
(in RMB million) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)

Insurance service expenses (65,289) (153,557) – – – 14 (218,832)

Allocation of reinsurance premiums paid (1,542) (6,355) – – – 384 (7,513)
Less: Amount recovered from reinsurer 1,102 4,698 – – – (223) 5,577
Net insurance finance expenses for insurance
contracts issued (76,002) (3,331) – – – (18) (79,351)
Less: Net reinsurance finance income for reinsurance
contracts held 40 421 – – – 16 477
Interest expenses on banking operations – – (55,043) – – 441 (54,602)
Fees and commission expenses on non-insurance
operations (831) – (1,935) (889) – 27 (3,628)
Net impairment losses on financial assets and other
assets (1,184) (60) (23,153) (2,411) 181 13 (26,614)
Including: Loan impairment losses, net – – (23,775) – – – (23,775)
Including: Impairment losses on investment assets (835) (9) 431 (1,599) – 13 (1,999)
Including: Impairment losses on receivables and
others (349) (51) 191 (812) 181 – (840)
Foreign exchange gains/(losses) (6) (17) 56 (350) – (191) (508)
General and administrative expenses (9,271) (307) (21,892) (6,233) (5,699) 4,798 (38,604)
Changes in insurance premium reserves – (254) – – – – (254)
Interest expenses on non-banking operations (3,169) (280) – (7,369) (28) 1,772 (9,074)
Including: Financial costs (2,321) 36 – (6,835) (28) 1,799 (7,349)
Including: Interest expenses on assets sold

FINANCIAL STATEMENTS
under agreements to repurchase
and placements from banks and
other financial institutions (848) (316) – (534) – (27) (1,725)
Other expenses (14,844) (435) (130) (6,235) (1,638) 5,266 (18,016)
Total expenses (170,996) (159,477) (102,097) (23,487) (7,184) 12,299 (450,942)
Profit before tax 56,696 11,789 31,977 3,455 1,302 (2,064) 103,155
Income tax (4,472) (1,835) (6,098) (1,770) (248) (28) (14,451)
Profit for the period 52,224 9,954 25,879 1,685 1,054 (2,092) 88,704
– Attributable to owners of the parent 50,612 9,909 14,999 1,296 473 (2,670) 74,619

Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd. 115
 Notes to the Interim Condensed Consolidated
Financial Information
For the six-month period ended 30 June 2024

4. SEGMENT REPORTING (CONTINUED)

The segment analysis for the six-month period ended 30 June 2023 is as follows:

Other
Life and Property and businesses
health casualty Asset Technology and
insurance insurance Banking management business elimination Total
(in RMB million) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)

Insurance revenue 113,611 155,899 – – – (205) 269,305

Interest revenue from banking operations – – 116,467 – – (40) 116,427
Fees and commission revenue from non-insurance
operations 2,689 – 19,283 4,835 – (2,904) 23,903
Including: Inter-segment fees and commission
revenue from non-insurance operations – – 2,738 140 – (2,878) –
Interest revenue from non-banking operations 49,660 4,013 – 6,911 401 (1,277) 59,708
Including: Inter-segment interest revenue from
non-banking operations 40 18 – 1,630 41 (1,729) –
Investment income 25,468 3,859 8,329 3,142 190 (1,119) 39,869
Including: Inter-segment investment income 1,504 157 (1) 76 – (1,736) –
Including: Operating lease income from investment
properties 3,662 215 27 24 – (718) 3,210
Share of profits and losses of associates and joint
ventures 2,693 467 – 248 906 (2,005) 2,309
Other revenues and other gains 19,490 542 595 14,243 8,987 (9,244) 34,613
Including: Inter-segment other revenues 5,124 34 7 1,466 2,550 (9,181) –
Including: Non-operating gains 124 80 22 3 2 – 231
Total revenue 213,611 164,780 144,674 29,379 10,484 (16,794) 546,134

116 Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd.
4. SEGMENT REPORTING (CONTINUED)
The segment analysis for the six-month period ended 30 June 2023 is as follows (continued):

Other
Life and Property and businesses
health casualty Asset Technology and
insurance insurance Banking management business elimination Total
(in RMB million) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)

Insurance service expenses (65,491) (148,330) – – – (89) (213,910)

Allocation of reinsurance premiums paid (1,397) (6,104) – – – 410 (7,091)
Less: Amount recovered from reinsurer 1,037 4,336 – – – (122) 5,251
Net insurance finance expenses for insurance
contracts issued (67,249) (2,898) – – – 38 (70,109)
Less: Net reinsurance finance income for reinsurance
contracts held 26 294 – – – (19) 301
Interest expenses on banking operations – – (53,833) – – 538 (53,295)
Fees and commission expenses on non-insurance
operations (583) – (2,909) (902) – 26 (4,368)
Net impairment losses on financial assets and other
assets (1,284) (7) (32,361) (2,502) 14 (125) (36,265)
Including: Loan impairment losses, net – – (27,663) – – – (27,663)
Including: Impairment losses on investment assets (1,134) 10 (3,836) (1,274) – (127) (6,361)
Including: Impairment losses on receivables and
others (150) (17) (862) (1,228) 14 2 (2,241)
Foreign exchange gains/(losses) 356 (16) 700 (273) (25) (199) 543
General and administrative expenses (10,087) (318) (24,312) (6,353) (6,192) 7,127 (40,135)
Changes in insurance premium reserves – (144) – – – – (144)
Interest expenses on non-banking operations (3,911) (754) – (9,519) (103) 1,880 (12,407)
Including: Financial costs (2,094) (449) – (8,998) (103) 1,893 (9,751)
Including: Interest expenses on assets sold

FINANCIAL STATEMENTS
under agreements to repurchase
and placements from banks and
other financial institutions (1,817) (305) – (521) – (13) (2,656)
Other expenses (15,757) (195) (26) (6,164) (1,868) 5,455 (18,555)
Total expenses (164,340) (154,136) (112,741) (25,713) (8,174) 14,920 (450,184)
Profit before tax 49,271 10,644 31,933 3,666 2,310 (1,874) 95,950
Income tax (2,936) (1,359) (6,546) (1,690) (2) 9 (12,524)
Profit for the period 46,335 9,285 25,387 1,976 2,308 (1,865) 83,426
– Attributable to owners of the parent 45,121 9,242 14,714 1,412 1,793 (2,441) 69,841

Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd. 117
 Notes to the Interim Condensed Consolidated
Financial Information
For the six-month period ended 30 June 2024

4. SEGMENT REPORTING (CONTINUED)

The segment assets, liabilities and equity analysis as at 30 June 2024 is as follows:

Other
Life and Property and businesses
health casualty Asset Technology and
insurance insurance Banking management business elimination Total
(in RMB million) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)

Segment assets 5,134,266 484,126 5,754,033 886,107 136,288 (168,154) 12,226,666

Segment liabilities 4,703,905 348,426 5,272,164 778,411 23,700 (164,890) 10,961,716
Segment equity 430,361 135,700 481,869 107,696 112,588 (3,264) 1,264,950
– Attributable to owners of the parent 360,677 134,882 250,307 92,407 93,683 (748) 931,208

Other information of life and health insurance segment subject to general model as at 30 June 2024 is as
follows:

Other segment information

Life and
health
insurance
(in RMB million) (Unaudited)

Accumulated changes in the fair value and credit risks provision of debt
financial assets at fair value through other comprehensive income, net of tax 122,451
Accumulated insurance finance expenses for insurance contracts issued
in other comprehensive income that may be reclassified subsequently to
profit or loss, net of tax (162,266)

118 Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd.
4. SEGMENT REPORTING (CONTINUED)
The segment assets, liabilities and equity analysis as at 31 December 2023 is as follows:

Other
Life and Property and businesses
health casualty Asset Technology and
insurance insurance Banking management business elimination Total
(in RMB million) (Audited) (Audited) (Audited) (Audited) (Audited) (Audited) (Audited)

Segment assets 4,653,433 476,023 5,587,116 865,111 138,447 (136,713) 11,583,417

Segment liabilities 4,259,715 350,605 5,114,788 754,078 22,685 (147,418) 10,354,453
Segment equity 393,718 125,418 472,328 111,033 115,762 10,705 1,228,964
– Attributable to owners of the parent 326,411 124,647 244,777 92,836 97,250 13,090 899,011

Other information of life and health insurance segment subject to general model as at 31 December 2023 is
as follows:

Other segment information

Life and
health
insurance
(in RMB million) (Audited)

Accumulated changes in the fair value and credit risks provision of debt
financial assets at fair value through other comprehensive income, net of tax 74,638
Accumulated insurance finance expenses for insurance contracts issued
in other comprehensive income that may be reclassified subsequently to
profit or loss, net of tax (93,119)

FINANCIAL STATEMENTS

Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd. 119
 Notes to the Interim Condensed Consolidated
Financial Information
For the six-month period ended 30 June 2024

5. INSURANCE REVENUE
For the six-month period ended 30 June 2024 2023
(in RMB million) (Unaudited) (Unaudited)

Insurance contracts not measured under the premium allocation

approach
Insurance revenue relating to the changes in the liability for remaining
coverage
Amount of contractual service margin recognized in profit or loss 37,351 41,229
Change in the risk adjustment for non-financial risk 3,921 3,756
Expected insurance service expenses incurred in the period 43,322 46,368
Others (17) 59
Amortization of insurance acquisition cash flows 23,970 23,499
Subtotal 108,547 114,911
Insurance contracts measured under the premium allocation
approach 166,061 154,394
274,608 269,305

6. NET INTEREST INCOME FROM BANKING OPERATIONS

For the six-month period ended 30 June 2024 2023
(in RMB million) (Unaudited) (Unaudited)

Interest revenue from banking operations

Due from the Central Bank 1,722 1,915
Due from and placements with banks and other financial institutions
and financial assets purchased under reverse repurchase agreements 5,284 4,104
Loans and advances to customers 81,324 94,734
Financial investments 15,578 15,674
Subtotal 103,908 116,427
Interest expenses on banking operations
Due to the Central Bank 1,615 1,970
Due to and placements from banks and other financial institutions and
assets sold under agreements to repurchase 7,012 6,100
Customer deposits 36,753 36,869
Bonds payable 9,222 8,356
Subtotal 54,602 53,295
Net interest income from banking operations 49,306 63,132

7. INTEREST REVENUE FROM NON-BANKING OPERATIONS

For the six-month period ended 30 June 2024 2023
(in RMB million) (Unaudited) (Unaudited)

Financial assets at amortized cost 15,604 15,992

Debt financial assets at fair value through other comprehensive income 42,456 43,716
58,060 59,708

120 Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd.
8. NET FEES AND COMMISSION INCOME FROM NON-INSURANCE
OPERATIONS
For the six-month period ended 30 June 2024 2023
(in RMB million) (Unaudited) (Unaudited)

Fees and commission revenue from non-insurance operations

Brokerage commission 4,435 4,600
Underwriting commission 393 509
Trust service fees 286 661
Fees and commission from the banking business 14,161 16,544
Others 1,839 1,589
Subtotal 21,114 23,903
Fees and commission expenses on non-insurance operations
Brokerage commission 1,135 1,227
Fees and commission on the banking business 1,935 2,908
Others 558 233
Subtotal 3,628 4,368
Net fees and commission income from non-insurance operations 17,486 19,535

9. INVESTMENT INCOME
For the six-month period ended 30 June 2024 2023
(in RMB million) (Unaudited) (Unaudited)

Net investment income 42,879 39,896

Realized gains/(losses) (23,231) (18,779)
Unrealized gains/(losses) 46,191 18,752
Total investment income 65,839 39,869

FINANCIAL STATEMENTS
(1) NET INVESTMENT INCOME
For the six-month period ended 30 June 2024 2023
(in RMB million) (Unaudited) (Unaudited)

Financial assets at fair value through profit or loss 30,731 29,820

Equity financial assets at fair value through other comprehensive
income 8,444 6,866
Operating lease income from investment properties 3,704 3,210
42,879 39,896

Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd. 121
 Notes to the Interim Condensed Consolidated
Financial Information
For the six-month period ended 30 June 2024

9. INVESTMENT INCOME (CONTINUED)

(2) REALIZED GAINS/(LOSSES)
For the six-month period ended 30 June 2024 2023
(in RMB million) (Unaudited) (Unaudited)

Financial instruments at fair value through profit or loss (31,833) (18,816)

Debt financial assets at fair value through other comprehensive income 1,835 140
Financial assets at amortized cost 729 (296)
Derivative financial instruments 2,618 (1,192)
Gains on disposals of loans and advances at fair value through other
comprehensive income 1,749 1,247
Precious metal transactions investment gains 298 167
Investment in subsidiaries, associates and joint ventures 486 (29)
Gains on debt restructuring 887 –
(23,231) (18,779)

(3) UNREALIZED GAINS/(LOSSES)

For the six-month period ended 30 June 2024 2023
(in RMB million) (Unaudited) (Unaudited)

Financial assets at fair value through profit or loss

Bonds 15,955 5,507
Funds 12,353 4,887
Stocks 8,886 748
Wealth management investments, debt schemes and other investments 8,053 5,068
Financial liabilities at fair value through profit or loss (138) 1,276
Derivative financial instruments 1,082 1,266
46,191 18,752

10. OTHER REVENUES AND OTHER GAINS

For the six-month period ended 30 June 2024 2023
(in RMB million) (Unaudited) (Unaudited)

Sales revenue 13,207 15,367

Expressway toll fee 360 433
Annuity management fee 805 882
Management fee and consulting fee income 2,863 3,791
Finance lease income 8,616 8,422
Others 5,608 5,718
31,459 34,613

122 Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd.
11. INSURANCE SERVICE EXPENSES
For the six-month period ended 30 June 2024 2023
(in RMB million) (Unaudited) (Unaudited)

Claims and other expenses 152,504 149,986

Amortization of insurance acquisition cash flows 60,026 58,796
Losses on onerous contracts and reversal of those losses 6,302 5,128
218,832 213,910

12. NET IMPAIRMENT LOSSES ON FINANCIAL ASSETS

For the six-month period ended 30 June 2024 2023
(in RMB million) (Unaudited) (Unaudited)

Accounts receivable 313 147

Loans and advances to customers 23,775 27,663
Debt financial assets at fair value through other comprehensive income 492 638
Financial assets at amortized cost 5,119 (1,709)
Finance lease receivable 523 144
Placements with banks and other financial institutions 451 1,373
Credit commitments (3,977) 6,044
Due from banks and other financial institutions (134) (452)
Others (32) 2,024
26,530 35,872

FINANCIAL STATEMENTS

Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd. 123
 Notes to the Interim Condensed Consolidated
Financial Information
For the six-month period ended 30 June 2024

13. PROFIT BEFORE TAX

(1) PROFIT BEFORE TAX IS ARRIVED AT AFTER CHARGING THE FOLLOWING ITEMS:
For the six-month period ended 30 June 2024 2023
(in RMB million) (Unaudited) (Unaudited)

General and administrative expenses (Note 13.(2)) 38,604 40,135

Other expenses (Note 13.(3)) 18,016 18,555
Net impairment losses on financial assets (Note 12) 26,530 35,872
Net impairment losses on other assets 84 393

(2) GENERAL AND ADMINISTRATIVE EXPENSES

For the six-month period ended 30 June 2024 2023
(in RMB million) (Unaudited) (Unaudited)

Employee costs 37,730 39,862

Including: Wages, salaries and bonuses 28,697 30,522
Retirement benefits, social security contributions and
welfare benefits 8,195 8,410
Property and equipment costs 8,536 9,831
Including: Depreciation of property and equipment 3,021 3,654
Amortization of intangible assets 1,281 1,204
Depreciation of right-of-use assets 2,045 2,418
Operation expenses and regulatory charges 24,587 27,498
Administrative costs 1,149 1,425
Taxes and surcharges 1,762 1,823
Others 3,435 3,787
77,199 84,226
Less: Expenses directly attributable to insurance contracts
Insurance acquisition cash flows recognized in liabilities for
remaining coverage (21,826) (27,035)
Amounts recognized in insurance service expenses (16,769) (17,056)
(38,595) (44,091)
38,604 40,135

(3) OTHER EXPENSES

For the six-month period ended 30 June 2024 2023
(in RMB million) (Unaudited) (Unaudited)

Cost of sales 7,296 9,052

Depreciation of investment properties 2,267 2,343
Interest expenses on finance lease operations 3,478 3,440
Others 4,975 3,720
18,016 18,555

124 Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd.
14. INCOME TAX
For the six-month period ended 30 June 2024 2023
(in RMB million) (Unaudited) (Unaudited)

Current income tax 7,265 11,102

Deferred income tax 7,186 1,422
14,451 12,524

Certain subsidiaries enjoy tax preferential treatments. These subsidiaries are not material to the Group.
Except for those subsidiaries enjoying tax preferential treatments, the applicable corporate income tax rate
of the Group for 2024 was 25%.

The amendments to IAS 12 introduce a temporary mandatory exemption from the recognition and
disclosure of deferred taxes arising from the implementation of the Pillar Two Model Rules published by the
Organization for Economic Co-operation and Development. The Pillar Two legislation has been enacted or
substantively enacted by 31 December 2023 in certain jurisdictions in which the Group operates, and such
legislation will successively become effective from 1 January 2024. The Group has adopted the amendments
to IAS 12 and the temporary mandatory exemptions.

According to the rules of Pillar Two legislation, low-tax jurisdictions with effective tax rate below 15% may
have a top-up tax impact. There are differences in the computation of effective tax rate between Pillar Two
legislation and IFRS Accounting Standards. The Group is currently in the process of analyzing the potential
impact of the Pillar Two legislation on future financial performance.

15. DIVIDENDS
For the six-month period ended 30 June 2024 2023
(in RMB million) (Unaudited) (Unaudited)

2023 final dividend – RMB1.50 (2022: RMB1.50) per ordinary share(i) 27,161 27,161
2024 interim dividend – RMB0.93 (2023: RMB0.93) per ordinary share (ii)
16,840 16,840

FINANCIAL STATEMENTS
(i) On 21 March 2024, the Board of Directors of the Company approved the Profit Distribution Plan of the Company for 2023, agreeing
to declare a cash dividend in the amount of RMB1.50 (tax inclusive) per share. The total amount of the cash dividend for 2023 was
RMB27,161 million (tax inclusive).

On 30 May 2024, the above profit distribution plan was approved by the shareholders of the Company at the annual general meeting.

(ii) On 22 August 2024, the Board of Directors of the Company approved the Profit Distribution Plan of the Company for Interim
Dividend of 2024, and declared an interim cash dividend of RMB0.93 (tax inclusive) per share. Pursuant to the Shanghai Stock
Exchange’s Guidelines for Self-regulation of Listed Companies No. 7 – Repurchase of Shares and other applicable regulations, the
Company’s A shares in the Company’s repurchased securities account after trading hours on the record date of A shareholders will
not be entitled to the interim dividend distribution. The actual total amount of the interim dividend distribution is subject to the
total number of shares that will be entitled to the dividend distribution on the record date. The total amount of the interim dividend
distribution in 2024 is estimated at RMB16,840,107,055.35 (tax inclusive) based on the total share capital of 18,210,234,607 shares less the
102,592,612 A shares of the Company in the repurchased securities account as of 30 June 2024, which was not recognized as a liability
as at 30 June 2024.

Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd. 125
 Notes to the Interim Condensed Consolidated
Financial Information
For the six-month period ended 30 June 2024

16. EARNINGS PER SHARE

(1) BASIC
Basic earnings per share is calculated by dividing the profit attributable to owners of the parent by the
weighted average number of ordinary shares in issue during the six-month period ended 30 June 2024
excluding ordinary shares purchased by the Group.

2024 2023
For the six-month period ended 30 June (Unaudited) (Unaudited)

Profit attributable to owners of the parent (in RMB million) 74,619 69,841
Weighted average number of ordinary shares in issue (million shares) 17,729 17,704
Basic earnings per share (in RMB) 4.21 3.94

(2) DILUTED
Diluted earnings per share was computed by dividing the adjusted profit attributable to owners of the
parent based on assuming conversion of all dilutive potential shares for the period by the adjusted
weighted average number of ordinary shares in issue. The shares granted by the Company under the Key
Employee Share Purchase Plan (Note 31) and Long-term Service Plan (Note 32) have a potential dilutive
effect on the earnings per share.

2024 2023
For the six-month period ended 30 June (Unaudited) (Unaudited)

Earnings (in RMB million)

Profit attributable to owners of the parent 74,619 69,841
Weighted average number of ordinary shares (million shares)
Weighted average number of ordinary shares in issue 17,729 17,704
Adjustments for:
Assumed vesting of Key Employee Share Purchase Plan 27 27
Assumed vesting of Long-term Service Plan 351 310
Weighted average number of ordinary shares for diluted earnings per
share in issue (million shares) 18,107 18,041
Diluted earnings per share (in RMB) 4.12 3.87

17. CASH AND AMOUNTS DUE FROM BANKS AND OTHER FINANCIAL
INSTITUTIONS
30 June 2024 31 December 2023
(in RMB million) (Unaudited) (Audited)

Cash on hand 3,342 3,690

Term deposits 245,244 259,756
Due from banks and other financial institutions 323,443 319,924
Placements with banks and other financial institutions 259,821 220,707
831,850 804,077

126 Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd.
17. CASH AND AMOUNTS DUE FROM BANKS AND OTHER FINANCIAL
INSTITUTIONS (CONTINUED)
Details of placements with banks and other financial institutions are as follows:

30 June 2024 31 December 2023

(in RMB million) (Unaudited) (Audited)

Measured at amortized cost

Placements with banks 56,326 68,410
Placements with other financial institutions 204,880 153,229
Gross 261,206 221,639
Less: Provision for impairment losses (1,385) (932)
Net 259,821 220,707

As at 30 June 2024, cash and amounts due from banks and other financial institutions of RMB6,050 million (31
December 2023: RMB7,961 million) were restricted from use.

18. BALANCES WITH THE CENTRAL BANK

30 June 2024 31 December 2023
(in RMB million) (Unaudited) (Audited)

Statutory reserve deposits with the Central Bank for banking

operations 209,558 227,324
Including: Statutory reserve deposits with the Central Bank for
banking operations – RMB 207,429 225,304
Statutory reserve deposits with the Central Bank for
banking operations – foreign currencies 2,129 2,020
Surplus reserve deposits with the Central Bank 92,974 43,450
Fiscal deposits with the Central Bank 128 202
302,660 270,976

FINANCIAL STATEMENTS
In accordance with relevant regulations, subsidiaries of the Group engaged in bank operations are required
to place mandatory reserve deposits with the People’s Bank of China for customer deposits in both local
currency and foreign currencies. As at 30 June 2024, the mandatory deposits are calculated at 6.5% (31
December 2023: 7.0%) of customer deposits denominated in RMB and 4.0% (31 December 2023: 4.0%) of
customer deposits denominated in foreign currencies. Mandatory reserve deposits are not available for use
by the Group in its day-to-day operations.

Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd. 127
 Notes to the Interim Condensed Consolidated
Financial Information
For the six-month period ended 30 June 2024

19. FINANCIAL ASSETS PURCHASED UNDER REVERSE REPURCHASE

AGREEMENTS
Classified by collateral:

30 June 2024 31 December 2023

(in RMB million) (Unaudited) (Audited)

Bonds 107,406 156,011

Bills 7,127 8,787
Stocks and others 2,973 3,112
Gross 117,506 167,910
Less: Provision for impairment losses (251) (250)
Net 117,255 167,660

20. FINANCE LEASE RECEIVABLE

30 June 2024 31 December 2023
(in RMB million) (Unaudited) (Audited)

Finance lease receivables, net of unrealized financial gains 207,615 185,658

Less: Provision for impairment losses (4,676) (4,984)
202,939 180,674

The Group’s finance lease receivables are the net amount offsetting the unrealized financial gains.

128 Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd.
21. LOANS AND ADVANCES TO CUSTOMERS
30 June 2024 31 December 2023
(in RMB million) (Unaudited) (Audited)

Measured at amortized cost

Corporate customers
Loans 1,100,944 973,872
Individual customers
Mortgage loans 306,576 303,568
Credit card receivables 470,999 514,092
Consumer loans 488,478 545,291
Business loans 555,282 614,768
Gross 2,922,279 2,951,591
Add: Interest receivable 9,448 9,954
Less: Provision for impairment losses (94,127) (97,353)
Net 2,837,600 2,864,192
Measured at fair value through other comprehensive income
Corporate customers
Loans 296,214 239,131
Discounted bills 180,842 214,799
Subtotal 477,056 453,930
Carrying amount 3,314,656 3,318,122

As at 30 June 2024, discounted bills with a carrying amount of RMB5,136 million (31 December 2023: RMB26
million) were pledged for amounts due to the Central Bank.

Loan impairment provision is as follows:

FINANCIAL STATEMENTS
For the six-month
period ended For the year ended
30 June 2024 31 December 2023
(in RMB million) (Unaudited) (Audited)

Measured at amortized cost

As at 1 January 97,353 97,919
Charge for the period/year 24,445 62,973
Write-off and transfer during the period/year (37,418) (80,727)
Recovery of loans written off previously 9,780 17,779
Unwinding of discount of impairment provisions recognized as
interest income (34) (83)
Others 1 (508)
As at 30 June/31 December 94,127 97,353
Measured at fair value through other comprehensive income
As at 1 January 2,692 3,277
Recover for the period/year (670) (140)
Write-off and transfer during the period/year – (445)
Recovery of loans written off previously 30 –
As at 30 June/31 December 2,052 2,692
As at 30 June/31 December 96,179 100,045

Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd. 129
 Notes to the Interim Condensed Consolidated
Financial Information
For the six-month period ended 30 June 2024

22. FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS

30 June 2024 31 December 2023
(in RMB million) (Unaudited) (Audited)

Bonds
Government bonds 250,394 200,566
Finance bonds 509,638 307,378
Corporate bonds 112,202 78,485
Funds 503,628 475,511
Stocks 153,676 156,514
Preferred shares 23,522 22,929
Unlisted equity investments 134,829 127,304
Debt schemes 73,161 72,237
Wealth management investments 253,601 258,313
Other investments 131,313 103,810
Total 2,145,964 1,803,047
Listed 305,982 316,044
Unlisted 1,839,982 1,487,003
2,145,964 1,803,047

23. FINANCIAL ASSETS AT AMORTIZED COST

30 June 2024 31 December 2023
(in RMB million) (Unaudited) (Audited)

Bonds
Government bonds 899,310 892,641
Finance bonds 29,421 32,113
Corporate bonds 40,747 47,433
Debt schemes 15,315 14,196
Wealth management investments 122,958 117,172
Other investments 169,723 186,775
Gross 1,277,474 1,290,330
Less: Provisions for impairment losses (50,178) (46,977)
Net 1,227,296 1,243,353
Listed 60,841 62,757
Unlisted 1,166,455 1,180,596
1,227,296 1,243,353

130 Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd.
24. DEBT FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER
COMPREHENSIVE INCOME
30 June 2024 31 December 2023
(in RMB million) (Unaudited) (Audited)

Bonds
Government bonds 2,193,695 1,973,152
Finance bonds 385,650 352,063
Corporate bonds 79,796 75,772
Debt schemes 104,307 108,515
Wealth management investments 82,143 127,506
Total 2,845,591 2,637,008
Listed 369,229 364,740
Unlisted 2,476,362 2,272,268
2,845,591 2,637,008

As at 30 June 2024, the total provision for impairment losses recognized in debt financial assets at fair value
through other comprehensive income is RMB9,358 million (31 December 2023: RMB8,818 million).

25. EQUITY FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER

COMPREHENSIVE INCOME
30 June 2024 31 December 2023
(in RMB million) (Unaudited) (Audited)

Stocks 210,056 177,686

Preferred shares 83,067 81,893
Other equity investments 6,233 5,298
Total 299,356 264,877
Listed 293,400 259,579

FINANCIAL STATEMENTS
Unlisted 5,956 5,298
299,356 264,877

Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd. 131
 Notes to the Interim Condensed Consolidated
Financial Information
For the six-month period ended 30 June 2024

26. INVESTMENTS IN ASSOCIATES AND JOINT VENTURES

The Group’s investments in the principal associates and joint ventures as at 30 June 2024 are as follows:

30 June 2024 31 December 2023

(in RMB million) (Unaudited) (Audited)

Associates
Veolia Water (Kunming) Investment Co., Ltd. 313 305
Shanxi Taichang Expressway Co., Ltd. 1,235 1,147
Beijing-Shanghai High-Speed Railway Equity Investment Scheme 10,574 9,493
Massive Idea Investments Limited 1,115 1,102
Guangzhou Jinglun Property Development Co., Ltd. 644 644
Lufax Holding Ltd. (“Lufax Holding”) 47,458 52,465
Ping An Healthcare and Technology Co., Ltd. (“Ping An Health”) 18,706 18,673
HealthKonnect Medical and Health Technology Management
Company Limited (“Ping An HealthKonnect”) 3,381 3,236
OneConnect Financial Technology Co., Ltd. (“OneConnect”) 1,997 1,913
Shenzhen China Merchants-Ping An Asset Management Co., Ltd. 1,043 992
ZhongAn Online P&C Insurance Co., Ltd. 2,051 2,008
Beijing Beiqi Penglong Automobile Service Co., Ltd. 1,825 1,768
China Yangtze Power Co., Ltd. 16,491 16,141
China Traditional Chinese Medicine Holdings Co., Ltd. 3,036 2,905
China Fortune Land Development Co., Ltd. 1,066 1,740
China Jinmao Holding Group Co., Ltd. 5,756 5,606
Ping An Consumer Finance Co., Ltd. 1,640 1,533
Vivid Synergy Limited 10,289 10,216
Shanghai Yibin Property Co., Ltd. 13,326 13,329
Guangzhou Futures Exchange Co., Ltd. 609 495
Others 29,490 31,473
Subtotal 172,045 177,184
Joint ventures
Beijing Zhaotai Property Development Co., Ltd. 1,287 1,278
Wuhan DAJT Property Development Co., Ltd. 462 460
Founder Meiji Yasuda Life Insurance Co., Ltd. 2,872 2,982
Others 72,962 76,973
Subtotal 77,583 81,693
Total 249,628 258,877

The Group has no significant contingent liabilities relating to the associates and joint ventures listed above.

132 Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd.
27. STATUTORY DEPOSITS FOR INSURANCE OPERATIONS
30 June 2024 31 December 2023
(in RMB million) (Unaudited) (Audited)

Ping An Life 6,760 6,760

Ping An Property & Casualty 4,200 4,200
Ping An Annuity 2,322 2,322
Ping An Health Insurance 940 1,100
Others 19 18
Subtotal 14,241 14,400
Less: Provision for impairment losses (5) (5)
Add: Interest receivable 750 508
Total 14,986 14,903

Statutory deposits for insurance operations are placed with PRC national commercial banks in accordance
with the Insurance Law and relevant regulations issued by regulatory authorities based on 20% of the
registered capital for the insurance company subsidiaries and 5% of the registered capital for insurance
sales agency subsidiaries within the Group, respectively. Statutory deposits for insurance operations
can only be utilized to settle liabilities during liquidation of insurance companies, insurance sales agency
companies and insurance brokerage companies.

28. OTHER ASSETS

30 June 2024 31 December 2023
(in RMB million) (Unaudited) (Audited)

Other receivables 81,033 76,052

Foreclosed assets 4,956 1,804
Prepayments 2,579 2,211
Precious metals held for trading 11,352 10,043
Dividends receivable 5,362

FINANCIAL STATEMENTS
378
Amounts in the processing clearance and settlement 70,890 39,036
Others 18,644 18,987
Gross 194,816 148,511
Less: Impairment provisions (12,974) (13,516)
Including: Other receivables (9,401) (9,530)
Foreclosed assets (1,504) (1,587)
Precious metals held for trading (172) (363)
Others (1,897) (2,036)
Net 181,842 134,995

Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd. 133
 Notes to the Interim Condensed Consolidated
Financial Information
For the six-month period ended 30 June 2024

29. SHARE CAPITAL

Domestic listed Overseas listed
A shares, par value H shares, par value
(million shares) RMB 1.00 per share RMB 1.00 per share Total

30 June 2024 (Unaudited) 10,762 7,448 18,210

31 December 2023 (Audited) 10,762 7,448 18,210

30. RESERVES, RETAINED PROFITS AND NON-CONTROLLING INTERESTS

In accordance with the relevant regulations, general reserves should be set aside to cover catastrophic
or other losses as incurred by companies operating in the insurance, banking, trust, securities, futures
and fund businesses. The Group’s respective entities engaged in such businesses would need to make
appropriations for such reserves based on their respective year-end profit or risk assets, the companies
operating in insurance should make appropriations for general reserves based on 10% of net profit, the
company operating in banking should make appropriations based on 1.5% of risk assets, the company
operating in securities should make appropriations based on 10% of net profit, the companies operating in
trust should make appropriations based on 5% of trust claim reserves, the companies operating in futures
should make appropriations based on 10% of net profit, and the companies operating in fund should make
appropriations based on 10% of fund management fees as determined in accordance with PRC Accounting
Standards, and based on the applicable PRC financial regulations, in their annual financial statements. Such
reserves are not available for dividend distribution or transfer to share capital.

In accordance with the relevant regulations, the net profit after tax of the Company for profit distribution
is deemed to be the lower of (i) the retained profits determined in accordance with PRC Accounting
Standards and (ii) the retained profits determined in accordance with IFRS Accounting Standards.

134 Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd.
31. KEY EMPLOYEE SHARE PURCHASE PLAN
The Company has adopted a Key Employee Share Purchase Plan for the key employees (including
executive directors and senior management) of the Company and its subsidiaries. Shares shall be vested
and awarded to the key employees approved for participation in the plan, subject to the achievement of
certain performance targets.

Movement of reserves relating to the Key Employee Share Purchase Plan is as follows:

Cost of shares held for

Key Employee Share Value of
For the six-month period ended 30 June 2024 Purchase Plan employee services Total
(in RMB million) (Unaudited) (Unaudited) (Unaudited)

As at 1 January (1,261) 861 (400)

Purchased(i) (584) – (584)
Share-based compensation expenses(ii) – 212 212
Exercised 564 (564) –
Lapsed 58 – 58
As at 30 June (1,223) 509 (714)

Cost of shares held for

Key Employee Share Value of
For the six-month period ended 30 June 2023 Purchase Plan employee services Total
(in RMB million) (Unaudited) (Unaudited) (Unaudited)

As at 1 January (1,137) 767 (370)

Purchased(i) (694) – (694)
Share-based compensation expenses(ii) – 304 304
Exercised 515 (515) –
Lapsed 55 – 55
As at 30 June (1,261) 556 (705)

FINANCIAL STATEMENTS
(i) During the period from 13 May 2024 to 13 June 2024, 13,606,921 ordinary A shares were purchased from the market. The average price
of shares purchased was RMB42.89 per share. The total purchasing cost was RMB584 million (transaction expenses included).

During the period from 16 March 2023 to 23 March 2023, 15,030,180 ordinary A shares were purchased from the market. The average
price of shares purchased was RMB46.13 per share. The total purchasing cost was RMB694 million (transaction expenses included).

(ii) The share-based compensation expenses of the Key Employee Share Purchase Plan and the total value of employee services were
RMB212 million during the six-month period ended 30 June 2024 (six-month period ended 30 June 2023: RMB304 million).

Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd. 135
 Notes to the Interim Condensed Consolidated
Financial Information
For the six-month period ended 30 June 2024

32. LONG-TERM SERVICE PLAN

The Company has adopted a Long-term Service Plan for the employees of the Company and its
subsidiaries. Shares shall be vested and awarded to the employees participated in the Long-term Service
Plan, subject to the confirmation of their applications made when they retire from the Company.

Movement of reserves relating to the Long-term Service Plan is as follows:

Cost of shares Value of

held for Long-term employee
For the six-month period ended 30 June 2024 Service Plan services Total
(in RMB million) (Unaudited) (Unaudited) (Unaudited)

As at 1 January (21,324) 1,429 (19,895)

Purchased – – –
Share-based compensation expenses(ii) – 267 267
Exercised 28 (28) –
As at 30 June (21,296) 1,668 (19,628)

Cost of shares Value of

held for Long-term employee
For the six-month period ended 30 June 2023 Service Plan services Total
(in RMB million) (Unaudited) (Unaudited) (Unaudited)

As at 1 January (16,886) 970 (15,916)

Purchased(i) (4,451) – (4,451)
Share-based compensation expenses(ii) – 214 214
Exercised 8 (8) –
As at 30 June (21,329) 1,176 (20,153)

(i) From 16 March 2023 to 23 March 2023, 96,608,364 ordinary A shares were purchased from the market. The average price of shares
purchased was RMB46.06 per share. The total purchasing cost was RMB4,451 million (transaction expenses included).

(ii) The share-based compensation expenses and the total value of employee services of the Long-term Service Plan were RMB267
million during the six-month period ended 30 June 2024 (six-month period ended 30 June 2023: RMB214 million).

33. TREASURY SHARES

30 June 2024 31 December 2023
(in RMB million) (Unaudited) (Audited)

Treasury shares 5,001 5,001

34. DUE TO BANKS AND OTHER FINANCIAL INSTITUTIONS

30 June 2024 31 December 2023
(in RMB million) (Unaudited) (Audited)

Deposits from other banks and financial institutions 614,874 526,452

Due to the Central Bank 126,298 208,783
Short-term borrowings 95,470 93,322
Long-term borrowings 139,364 135,161
976,006 963,718

136 Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd.
35. ASSETS SOLD UNDER AGREEMENTS TO REPURCHASE
30 June 2024 31 December 2023
(in RMB million) (Unaudited) (Audited)

Bonds 248,062 228,250

Others 6,916 13,553
254,978 241,803

As at 30 June 2024, bonds with a carrying amount of RMB197,782 million (31 December 2023: RMB171,868
million) were pledged as collateral for financial assets sold under agreements to repurchase resulted from
repurchase transactions entered into by the Group in the inter-bank market. The collaterals are restricted
from trading during the period of the repurchase transactions.

As at 30 June 2024, the carrying amount of bonds deposited in the collateral pool was RMB273,044 million
(31 December 2023: RMB304,409 million). The collaterals are restricted from trading during the period of
the repurchase transactions. The Group can withdraw the exchange-traded bonds from the collateral
pool in short time provided that the value of the bonds is no less than the balance of related repurchase
transactions.

For bonds repurchase transactions through stock exchange, the Group is required to deposit certain
exchange traded bonds and/or bonds transferred under new pledged repurchase transactions with fair
value converted at a standard rate pursuant to stock exchange’s regulation no less than the balance of
related repurchase transactions into a collateral pool.

36. INSURANCE CONTRACT ASSETS AND LIABILITIES

(1) The analysis of liabilities for remaining coverage and liabilities for incurred claims is as follows:

30 June 2024 31 December 2023

(in RMB million) (Unaudited) (Audited)

Insurance contract liabilities

FINANCIAL STATEMENTS
Liabilities for remaining coverage 4,379,900 3,959,695
Including: Excluding loss component 4,366,625 3,947,571
Loss component 13,275 12,124
Liabilities for incurred claims 209,850 200,106
4,589,750 4,159,801
Insurance contract assets
Liabilities for remaining coverage – (8)
Including: Excluding loss component – (8)
Liabilities for incurred claims – 5
– (3)
Net insurance contract liabilities 4,589,750 4,159,798

Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd. 137
 Notes to the Interim Condensed Consolidated
Financial Information
For the six-month period ended 30 June 2024

36. INSURANCE CONTRACT ASSETS AND LIABILITIES (CONTINUED)

(2) The analysis by measurement component of contracts not measured under the premium allocation
approach is as follows:

30 June 2024 31 December 2023

(in RMB million) (Unaudited) (Audited)

Insurance contract liabilities

Estimates of the present value of future cash flows 3,375,545 2,964,209
Risk adjustment for non-financial risk 165,685 158,628
Contractual service margin 776,431 771,438
4,317,661 3,894,275
Insurance contract assets – –
Net insurance contract liabilities 4,317,661 3,894,275

(3) The effect on the measurement components of insurance contacts arising from the initial recognition
of contracts not measured under the premium allocation approach that were initially recognized in the
period is as follows:

For the six-month period ended 30 June 2024

(Unaudited)
(in RMB million) Onerous contracts Others Total

Insurance acquisition cash flows 2,585 23,715 26,300

Other cash outflows 15,314 165,924 181,238
Estimates of the present value of future cash
outflows 17,899 189,639 207,538
Estimates of the present value of future cash inflows (17,444) (214,643) (232,087)
Risk adjustment for non-financial risk 314 1,036 1,350
Contractual service margin – 23,968 23,968
Losses recognized on initial recognition 769 – 769

For the six-month period ended 30 June 2023

(Unaudited)
(in RMB million) Onerous contracts Others Total

Insurance acquisition cash flows 1,700 30,061 31,761

Other cash outflows 7,544 194,554 202,098
Estimates of the present value of future cash
outflows 9,244 224,615 233,859
Estimates of the present value of future cash inflows (8,979) (255,959) (264,938)
Risk adjustment for non-financial risk 239 1,374 1,613
Contractual service margin – 29,970 29,970
Losses recognized on initial recognition 504 – 504

138 Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd.
37. CUSTOMER DEPOSITS AND PAYABLES TO BROKERAGE CUSTOMERS

30 June 2024 31 December 2023

(in RMB million) (Unaudited) (Audited)

Current and savings accounts

Corporate customers 792,052 868,022
Individual customers 389,591 290,352
Term deposits
Corporate customers 1,474,303 1,321,068
Individual customers 923,554 938,713
Subtotal 3,579,500 3,418,155
Payables to brokerage customers
Individual customers 84,628 90,301
Corporate customers 33,054 26,083
Subtotal 117,682 116,384
Total 3,697,182 3,534,539

As at 30 June 2024, bonds classified as financial assets carried at amortized costs with a carrying amount of
RMB33,748 million (31 December 2023: RMB31,059 million) were pledged as main collaterals for term deposit
with the Central Bank.

FINANCIAL STATEMENTS

Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd. 139
 Notes to the Interim Condensed Consolidated
Financial Information
For the six-month period ended 30 June 2024

38. BONDS PAYABLE

The information of the Group’s main bonds payable is as follows:

(in RMB million)

Early redemption╱ Issue Interest Coupon rate 30 June 31 December
Issuer Type Guarantee Maturity Selling back option Par value year type (per annum) 2024 2023
(Unaudited) (Audited)

Ping An Financial Corporate bonds None 5 years End of the third 2,474 2019 Fixed 3.00%-3.45% 481 2,513
Leasing year
Ping An Financial Corporate bonds None 5 years End of the third 1,840 2020 Fixed 3.60%-3.70% 1,866 1,869
Leasing year
Ping An Financial Corporate bonds None 4 years End of the 718 2020 Fixed 3.00%-3.10% 728 729
Leasing second year
Ping An Financial Corporate bonds None 2-4 years End of the 2,400 2021 Fixed 3.85%-4.40% 2,433 2,437
Leasing second year
Ping An Financial Corporate bonds None 3-5 years End of the third 1,700 2021 Fixed 2.80%-4.08% 1,724 1,726
Leasing year
Ping An Financial Corporate bonds None 3-4 years End of the 8,460 2022 Fixed 2.90%-3.70% 7,767 8,937
Leasing second year
Ping An Financial Corporate bonds None 5 years End of the third 1,500 2022 Fixed 3.33%-3.80% 1,521 1,523
Leasing year
Ping An Financial Corporate bonds None 2 years End of the first 3,200 2022 Fixed 2.50%-3.15% 1,926 3,250
Leasing year
Ping An Financial Corporate bonds None 4 years End of the 5,600 2023 Fixed 3.37%-4.35% 5,678 5,687
Leasing second year
Ping An Financial Corporate bonds None 2 years End of the first 3,200 2023 Fixed 2.25%-3.30% 3,245 3,554
Leasing year
Ping An Financial Private corporate bonds None 5 years End of the third 629 2019 Fixed 3.70% – 639
Leasing year
Ping An Financial Medium term notes None 2 years End of the first 1,000 2024 Fixed 2.85% 1,014 –
Leasing year
Ping An Financial Corporate bonds None 2 years End of the first 1,900 2024 Fixed 2.18%-2.55% 1,926 –
Leasing year
Ping An Financial Corporate bonds None 4 years End of the 2,000 2024 Fixed 2.39%-2.92% 2,028 –
Leasing second year
Ping An Bank Tier-2 Capital bonds None 10 years End of the fifth 30,000 2019 Fixed 4.55% – 30,907
year
Ping An Bank Financial bonds None 3 years None 20,000 2021 Fixed 3.45% – 20,630
Ping An Bank Tier-2 Capital bonds None 10 years End of the fifth 30,000 2021 Fixed 3.69% 30,703 30,153
year
Ping An Bank Financial bonds None 3 years None 20,000 2022 Fixed 2.45% 20,341 20,098
Ping An Bank Financial bonds None 3 years None 5,000 2022 Fixed 2.45% 5,081 5,020
Ping An Bank Financial bonds None 3 years None 5,000 2022 Fixed 2.45% 5,081 5,020

140 Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd.
38. BONDS PAYABLE (CONTINUED)
The information of the Group’s main bonds payable is as follows (continued):

(in RMB million)

Early redemption╱ Issue Interest Coupon rate 30 June 31 December
Issuer Type Guarantee Maturity Selling back option Par value year type (per annum) 2024 2023
(Unaudited) (Audited)

Ping An Bank Financial bonds None 3 years None 20,000 2022 Fixed 2.45% 20,312 20,069
Ping An Bank Financial bonds None 3 years None 30,000 2023 Fixed 2.77% 30,180 30,598
Ping An Bank Financial bonds None 3 years None 15,000 2024 Fixed 2.46% 15,145 –
Ping An Bank Financial bonds None 3 years None 5,000 2024 Fixed 2.46% 5,048 –
Ping An Life Capital supplement bonds None 10 years End of the fifth 20,000 2020 Fixed First 5 years: 3.58% 20,569 20,873
year Next 5 years: 4.58%
(if not redeemed)
Ping An Property & Capital supplement bonds None 10 years End of the fifth 10,000 2019 Fixed First 5 years: 4.64% – 10,543
Casualty year Next 5 years: 5.64%
(if not redeemed)
Ping An Securities Corporate bonds None 3 years None 3,000 2021 Fixed 3.40% – 3,060
Ping An Securities Corporate bonds None 3 years None 2,400 2021 Fixed 3.48% – 2,446
Ping An Securities Corporate bonds None 3 years None 1,200 2021 Fixed 3.50% – 1,222
Ping An Securities Corporate bonds None 3 years None 1,800 2021 Fixed 3.25% 1,855 1,826
Ping An Securities Corporate bonds None 3 years None 3,000 2021 Fixed 3.05% 3,081 3,035
Ping An Securities Corporate bonds None 5 years None 2,000 2021 Fixed 3.47% 2,060 2,025
Ping An Securities Corporate bonds None 3 years None 2,600 2021 Fixed 3.37% 2,661 2,617
Ping An Securities Private corporate bonds None 2 years None 1,500 2022 Fixed 3.07% – 1,544
Ping An Securities Corporate bonds None 3 years None 2,300 2022 Fixed 3.00% 2,314 2,349
Ping An Securities Corporate bonds None 5 years None 500 2022 Fixed 3.42% 503 512
Ping An Securities Subordinated corporate None 3 years None 1,900 2022 Fixed 3.10% 1,907 1,937
bonds
Ping An Securities Subordinated corporate None 5 years None 1,100 2022 Fixed 3.56% 1,105 1,124

FINANCIAL STATEMENTS
bonds

Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd. 141
 Notes to the Interim Condensed Consolidated
Financial Information
For the six-month period ended 30 June 2024

38. BONDS PAYABLE (CONTINUED)

The information of the Group’s main bonds payable is as follows (continued):

(in RMB million)

Early redemption╱ Issue Interest Coupon rate 30 June 31 December
Issuer Type Guarantee Maturity Selling back option Par value year type (per annum) 2024 2023
(Unaudited) (Audited)

Ping An Securities Corporate bonds None 3 years None 3,000 2022 Fixed 2.80% 3,077 3,035
Ping An Securities Corporate bonds None 3 years None 500 2022 Fixed 2.75% 512 505
Ping An Securities Corporate bonds None 5 years None 1,000 2022 Fixed 3.22% 1,028 1,012
Ping An Securities Corporate bonds None 3 years None 2,500 2022 Fixed 2.65% 2,552 2,518
Ping An Securities Corporate bonds None 5 years None 1,800 2023 Fixed 3.60% 1,823 1,855
Ping An Securities Corporate bonds None 3 years None 1,200 2023 Fixed 3.33% 1,214 1,234
Ping An Securities Corporate bonds None 5 years None 750 2023 Fixed 3.60% 758 772
Ping An Securities Corporate bonds None 3 years None 500 2023 Fixed 3.39% 505 514
Ping An Securities Corporate bonds None 3 years None 1,000 2023 Fixed 3.15% 1,006 1,021
Ping An Securities Corporate bonds None 2 years None 2,000 2023 Fixed 3.02% 2,011 2,041
Ping An Securities Corporate bonds None 3 years None 1,000 2023 Fixed 3.03% 1,003 1,018
Ping An Securities Corporate bonds None 2 years None 1,500 2023 Fixed 2.90% 1,505 1,526
Ping An Securities Corporate bonds None 3 years None 2,000 2023 Fixed 2.95% 2,002 2,031
Ping An Securities Corporate bonds None 2 years None 1,000 2023 Fixed 2.78% 1,001 1,015
Ping An Securities Corporate bonds None 5 years None 1,500 2023 Fixed 3.25% 1,546 1,521
Ping An Securities Corporate bonds None 3 years None 500 2023 Fixed 2.95% 513 506
Ping An Securities Corporate bonds None 3 years None 1,500 2023 Fixed 3.00% 1,527 1,504
Ping An Securities Corporate bonds None 3 years None 800 2023 Fixed 3.00% 812 800
Ping An Securities Corporate bonds None 2 years None 1,200 2023 Fixed 2.98% 1,218 1,200
Ping An Securities Corporate bonds None 2 years None 500 2024 Fixed 2.75% 506 –
Ping An Securities Corporate bonds None 3 years None 1,150 2024 Fixed 2.80% 1,164 –

142 Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd.
38. BONDS PAYABLE (CONTINUED)
The information of the Group’s main bonds payable is as follows (continued):

(in RMB million)

Early redemption╱ Issue Interest Coupon rate 30 June 31 December
Issuer Type Guarantee Maturity Selling back option Par value year type (per annum) 2024 2023
(Unaudited) (Audited)

Ping An Real Estate Corporate bonds None 7 years End of the 750 2019 Fixed 4.40% 783 766
Co., Ltd. (“Ping An fifth year
Real Estate”)
Ping An Real Estate Corporate bonds None 7 years End of the 940 2019 Fixed 4.30% 978 957
fifth year
Shenzhen Ping An Private corporate bonds None 5 years End of the 150 2020 Fixed 4.00% 150 153
Financial Technology third year
Consulting Co., Ltd.
Founder Securities Corporate bonds None 2 years None 1,000 2022 Fixed 3.49% – 1,026
Co., Ltd. (“Founder
Securities”)
Founder Securities Corporate bonds None 2 years None 700 2022 Fixed 3.40% – 716
Founder Securities Corporate bonds None 2 years None 600 2022 Fixed 3.18% – 611
Founder Securities Corporate bonds None 3 years None 1,000 2022 Fixed 2.95% 1,022 1,007
Founder Securities Corporate bonds None 2 years None 700 2022 Fixed 2.75% 712 703
Founder Securities Corporate bonds None 3 years None 1,300 2022 Fixed 2.94% 1,324 1,305
Founder Securities Corporate bonds None 2 years None 400 2022 Fixed 4.30% 409 400
Founder Securities Corporate bonds None 2 years None 1,600 2023 Fixed 3.56% 1,620 1,648
Founder Securities Subordinated corporate None 3 years None 1,200 2023 Fixed 4.10% 1,210 1,234
bonds
Founder Securities Subordinated corporate None 2 years None 1,500 2023 Fixed 3.68% 1,507 1,534
bonds
Founder Securities Subordinated corporate None 3 years None 500 2023 Fixed 3.80% 502 511

FINANCIAL STATEMENTS
bonds
Founder Securities Corporate bonds None 3 years None 3,000 2023 Fixed 3.23% 3,084 3,035
Founder Securities Corporate bonds None 3 years None 500 2023 Fixed 3.28% 513 504
Founder Securities Corporate bonds None 3 years None 3,000 2023 Fixed 3.50% 3,069 3,016
Founder Securities Corporate bonds None 2 years None 2,000 2023 Fixed 3.14% 2,037 2,005
Founder Securities Corporate bonds None 2 years None 2,000 2023 Fixed 3.20% 2,033 2,000
Founder Securities Corporate bonds None 2 years None 3,000 2024 Fixed 2.90% 3,037 –
Founder Securities Corporate bonds None 2 years None 3,000 2024 Fixed 2.59% 3,023 –
Founder Securities Corporate bonds None 2 years None 2,000 2024 Fixed 2.40% 2,009 –
Founder Securities Corporate bonds None 3 years None 1,500 2024 Fixed 2.40% 1,503 –

Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd. 143
 Notes to the Interim Condensed Consolidated
Financial Information
For the six-month period ended 30 June 2024

38. BONDS PAYABLE (CONTINUED)

The information of the Group’s main bonds payable is as follows (continued):

As at 30 June 2024, the original terms of interbank certificates of deposit and certificates of deposit issued
by Ping An Bank, but unmatured were from 6 months to 1 year, and the annual interest rates were from
1.99% to 4.81% (31 December 2023: the original terms were from 3 months to 1 year, and the annual interest
rates were from 2.22% to 5.32%). The carrying amount was RMB476,041 million (31 December 2023: RMB565,833
million).

As at 30 June 2024, the original terms of short-term financial bonds issued by Ping An Securities, but
unmatured were from 91 days to 274 days, and the annual interest rates were from 1.95% to 2.23% (31
December 2023: the original terms were from 91 days to 274 days, and the annual interest rates were from
2.20% to 2.79%). The carrying amount was RMB8,039 million (31 December 2023: RMB16,107 million).

As at 30 June 2024, the original terms of short-term financial bonds issued by Ping An Financial Leasing,
but unmatured were from 118 days to 365 days, and the annual interest rates were from 1.81% to 3.40% (31
December 2023: the original terms were from 120 days to 365 days, and the annual interest rates were from
2.16% to 3.40%). The carrying amount was RMB11,559 million (31 December 2023: RMB12,745 million).

As at 30 June 2024, the original terms of short-term financial bonds issued by Founder Securities, but
unmatured were from 182 days to 364 days, and the annual interest rates were from 2.03% to 2.10% (31
December 2023: the original terms were from 140 days to 365 days, and the annual interest rates were from
2.70% to 3.40%). The carrying amount was RMB2,506 million (31 December 2023: RMB7,711 million).

As at 30 June 2024, the original terms of income certificates issued by Ping An Securities, but unmatured
were from 14 days to 90 days, and the annual interest rates were from 4.48% to 5.10% (31 December 2023: the
original terms were from 14 days to 90 days, and the annual interest rates were from 2.30% to 5.10%). The
carrying amount was RMB35 million (31 December 2023: RMB122 million).

As at 30 June 2024, the original terms of income certificates issued by Founder Securities, but unmatured
were from 181 days to 687 days, and the annual interest rates were from 2.00% to 3.50% (31 December 2023:
the original terms were from 366 days to 733 days, and the annual interest rates were from 3.00% to 4.40%).
The carrying amount was RMB13,242 million (31 December 2023: RMB7,262 million).

39. FIDUCIARY ACTIVITIES

30 June 2024 31 December 2023
(in RMB million) (Unaudited) (Audited)

Assets under trust schemes 828,265 650,133

Assets under annuity investments and annuity schemes 815,770 750,293
Assets under asset management schemes 2,051,887 1,800,776
Entrusted loans of banking operations 156,887 155,382
Entrusted investments of banking operations 1,045,116 1,013,060
4,897,925 4,369,644

144 Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd.
40. CLASSIFICATION AND FAIR VALUE OF FINANCIAL INSTRUMENTS
The Group’s financial instruments mainly consist of cash and amounts due from banks and other financial
institutions, term deposits, bonds, funds, stocks, loans, borrowings, deposits from other banks and financial
institutions, customer deposits and payables to brokerage customers, etc.

(1) CLASSIFICATION OF FINANCIAL INSTRUMENTS

The following table sets out the carrying amount and fair value of the Group’s major financial instruments
by classification:

Carrying amount Fair value

30 June 2024 31 December 2023 30 June 2024 31 December 2023
(in RMB million) (Unaudited) (Audited) (Unaudited) (Audited)

Financial assets
Cash and amounts due from banks and other
financial institutions 831,850 804,077 831,850 804,077
Balances with the Central Bank and statutory
deposits for insurance operations 317,646 285,879 317,646 285,879
Financial assets purchased under reverse repurchase
agreements 117,255 167,660 117,255 167,660
Accounts receivable 39,661 35,636 39,661 35,636
Derivative financial assets 51,305 44,978 51,305 44,978
Finance lease receivable 202,939 180,674 202,939 180,674
Loans and advances to customers 3,314,656 3,318,122 3,314,656 3,318,122
Financial assets at fair value through profit or loss 2,145,964 1,803,047 2,145,964 1,803,047
Financial assets at amortized cost 1,227,296 1,243,353 1,285,093 1,272,437
Debt financial assets at fair value through other
comprehensive income 2,845,591 2,637,008 2,845,591 2,637,008
Equity financial assets at fair value through other
comprehensive income 299,356 264,877 299,356 264,877

FINANCIAL STATEMENTS
Other assets 149,728 107,203 149,728 107,203
Financial liabilities
Due to banks and other financial institutions 976,006 963,718 976,006 963,718
Financial liabilities at fair value through profit or loss 144,568 48,619 144,568 48,619
Derivative financial liabilities 44,550 44,531 44,550 44,531
Assets sold under agreements to repurchase 254,978 241,803 254,978 241,803
Accounts payable 7,536 8,858 7,536 8,858
Customer deposits and payables to brokerage
customers 3,697,182 3,534,539 3,697,182 3,534,539
Bonds payable 823,691 964,007 825,154 962,802
Other liabilities 227,497 213,717 227,497 213,717

Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd. 145
 Notes to the Interim Condensed Consolidated
Financial Information
For the six-month period ended 30 June 2024

40. CLASSIFICATION AND FAIR VALUE OF FINANCIAL INSTRUMENTS

(CONTINUED)
(2) DETERMINATION OF FAIR VALUE AND THE FAIR VALUE HIERARCHY
The methods used to determine fair value of financial assets and liabilities and the breakdown of fair value
hierarchy are disclosed in the 2023 annual report of the Group. The Group uses the following hierarchy for
determining and disclosing the fair value of financial instruments by valuation techniques:

Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can
access at the measurement date. A market is regarded as active if quoted prices are readily and regularly
available from an exchange, dealer, broker, industry group, pricing service, or regulatory agency, and
those prices represent actual and regularly occurring market transactions on an arm’s length basis. The
main quoted market price used for financial assets held by the Group is the current closing price. Financial
instruments included in Level 1 comprise primarily equity investments, fund investments and bond
investments traded on stock exchanges and open-ended mutual funds;

Level 2: either directly (such as price) or indirectly (such as calculated based on price) other than quoted
prices included within Level 1 that are observable for the asset or liability. This valuation method maximizes
the use of observable market data and minimizes the use of unobservable inputs;

Level 3: inputs which are based on parameters other than observable market data (unobservable inputs).

The level of fair value measurement is determined by the lowest level input that is significant to the
entire measurement. Assessing the significance of a particular input to the entire measurement requires
judgement, taking into account factors specific to the asset or liability.

Valuation methods for Level 2 and Level 3 financial instruments

For Level 2 financial instruments, valuations are generally using observable market inputs, or recent quoted
market prices. The valuation providers typically gather, analyse and interpret information related to market
transactions and other key valuation model inputs from multiple sources, and through the use of widely
accepted internal valuation models, provide a theoretical quote on various securities. Debt securities are
classified as Level 2 when they are valued at recent quoted price from Chinese interbank market or from
public valuation service providers. The fair value of debt investments denominated in RMB is determined
based upon the valuation results by the China Central Depository & Clearing Co., Ltd. All significant inputs
are observable in the market.

For Level 3 financial instruments, the consideration of being classified as Level 3 is mainly based on the
significance of the unobservable factors to the overall fair value measurement.

146 Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd.
40. CLASSIFICATION AND FAIR VALUE OF FINANCIAL INSTRUMENTS
(CONTINUED)
(2) DETERMINATION OF FAIR VALUE AND THE FAIR VALUE HIERARCHY (CONTINUED)
The following table shows an analysis of financial instruments recorded at fair value by level of the fair
value hierarchy:

30 June 2024 (Unaudited)

(in RMB million) Level 1 Level 2 Level 3 Total fair value

Financial assets
Financial assets at fair value through profit or loss
Bonds 10,971 860,748 515 872,234
Funds 280,700 218,103 4,825 503,628
Stocks 152,028 1,529 119 153,676
Wealth management investments, debt schemes
and other investments 222 440,754 175,450 616,426
443,921 1,521,134 180,909 2,145,964
Derivative financial assets
Interest rate swaps – 19,087 – 19,087
Currency forwards and swaps – 26,415 – 26,415
Others – 4,856 947 5,803
– 50,358 947 51,305
Debt financial assets at fair value through other
comprehensive income
Bonds 12,267 2,646,293 581 2,659,141
Wealth management investments, debt schemes
and other investments – 183,289 3,161 186,450
12,267 2,829,582 3,742 2,845,591

FINANCIAL STATEMENTS
Equity financial assets at fair value through
other comprehensive income
Stocks 210,056 – – 210,056
Preferred shares – 83,067 – 83,067
Other equity investments 276 2,077 3,880 6,233
210,332 85,144 3,880 299,356
Loans and advances to customers measured at
fair value through other comprehensive income – 477,056 – 477,056
Total financial assets 666,520 4,963,274 189,478 5,819,272
Financial liabilities
Derivative financial liabilities
Interest rate swaps – 17,235 – 17,235
Currency forwards and swaps – 22,240 – 22,240
Others – 2,313 2,762 5,075
– 41,788 2,762 44,550
Placements from banks and other financial institutions
measured at fair value through profit or loss 3,299 – – 3,299
Financial liabilities at fair value through profit or loss 3,034 140,356 1,178 144,568
Total financial liabilities 6,333 182,144 3,940 192,417

Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd. 147
 Notes to the Interim Condensed Consolidated
Financial Information
For the six-month period ended 30 June 2024

40. CLASSIFICATION AND FAIR VALUE OF FINANCIAL INSTRUMENTS

(CONTINUED)
(2) DETERMINATION OF FAIR VALUE AND THE FAIR VALUE HIERARCHY (CONTINUED)
The following table shows an analysis of financial instruments recorded at fair value by level of the fair
value hierarchy (continued):

31 December 2023 (Audited)

(in RMB million) Level 1 Level 2 Level 3 Total fair value

Financial assets
Financial assets at fair value through profit or loss
Bonds 8,963 576,971 495 586,429
Funds 289,307 182,657 3,547 475,511
Stocks 155,131 1,269 114 156,514
Wealth management investments, debt schemes
and other investments 1,519 416,420 166,654 584,593
454,920 1,177,317 170,810 1,803,047
Derivative financial assets
Interest rate swaps – 14,070 – 14,070
Currency forwards and swaps – 27,015 – 27,015
Others – 3,575 318 3,893
– 44,660 318 44,978
Debt financial assets at fair value through other
comprehensive income
Bonds 11,101 2,389,281 605 2,400,987
Wealth management investments, debt schemes
and other investments – 232,180 3,841 236,021
11,101 2,621,461 4,446 2,637,008
Equity financial assets at fair value through
other comprehensive income
Stocks 177,673 – 13 177,686
Preferred shares – 81,893 – 81,893
Other equity investments – 2,021 3,277 5,298
177,673 83,914 3,290 264,877
Loans and advances to customers measured at
fair value through other comprehensive income – 453,930 – 453,930
Total financial assets 643,694 4,381,282 178,864 5,203,840
Financial liabilities
Derivative financial liabilities
Interest rate swaps – 12,718 – 12,718
Currency forwards and swaps – 27,780 – 27,780
Others – 3,973 60 4,033
– 44,471 60 44,531
Placements from banks and other financial institutions
measured at fair value through profit or loss 2,792 – – 2,792
Financial liabilities at fair value through profit or loss 2,780 43,965 1,874 48,619
Total financial liabilities 5,572 88,436 1,934 95,942

148 Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd.
40. CLASSIFICATION AND FAIR VALUE OF FINANCIAL INSTRUMENTS
(CONTINUED)
(2) DETERMINATION OF FAIR VALUE AND THE FAIR VALUE HIERARCHY (CONTINUED)
During the six months ended 30 June 2024 and the six months ended 30 June 2023, there were no significant
transfers between Level 1 and Level 2 fair value measurements.

41. RISK AND CAPITAL MANAGEMENT

(1) INSURANCE RISK
Type of insurance risk
Insurance risk refers to the risk that actual indemnity might exceed expected indemnity due to the
frequency and severity of insurance accidents, as well as the possibility that insurance surrender rates are
being underestimated. The principal risk the Group faces under such contracts is that the actual claims and
benefit payments exceed the carrying amount of insurance contract liabilities. This could occur due to any
of the following factors:

(i) Occurrence risk – the possibility that the number of insured events will differ from those expected.

(ii) Severity risk – the possibility that the cost of the events will differ from those expected.

(iii) Development risk – the possibility that changes may occur in the amount of an insurer’s obligation at
the end of the contract period.

The variability of risks is improved by diversification of risk of loss to a large portfolio of insurance
contracts as a more diversified portfolio is less likely to be affected across the board by change in any
subset of the portfolio. The variability of risks is also improved by careful selection and implementation of
underwriting strategies and guidelines.

The insurance business of the Group mainly comprises long-term life insurance contracts, property

FINANCIAL STATEMENTS
and casualty and short-term life insurance contracts. For contracts where death is the insured risk, the
significant factors that could increase the overall frequency of claims are epidemics, widespread changes
in lifestyles and natural disasters, resulting in earlier or more claims than expected. For contracts where
survival is the insured risk, the most significant factor is continuing improvement in medical science and
social conditions that would increase longevity. For property and casualty insurance contracts, claims are
often affected by natural disasters, calamities, terrorist attacks, etc.

These risks currently do not vary significantly in relation to the location of the risk insured by the Group
whilst undue concentration by amounts could have an impact on the severity of benefit payments on a
portfolio basis.

There would be no significant mitigating terms and conditions that reduce the insured risk accepted for
contracts with fixed and guaranteed benefits and fixed future premiums. However, for contracts with
discretionary participation features, the participating nature of these contracts results in a significant
portion of the insurance risk being shared with the insured party.

Insurance risk is also affected by the policyholders’ rights to terminate the contract, pay reduced
premiums, refuse to pay premiums or exercise annuity conversion option, etc. Thus, the resultant insurance
risk is subject to policyholders’ behaviour and decisions.

Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd. 149
 Notes to the Interim Condensed Consolidated
Financial Information
For the six-month period ended 30 June 2024

41. RISK AND CAPITAL MANAGEMENT (CONTINUED)

(1) INSURANCE RISK (CONTINUED)
Concentration of insurance risks
The Group runs its insurance business primarily within the PRC. Hence the geographical insurance risk is
concentrated primarily within the PRC.

Assumptions
(a) Long-term life insurance contracts
Significant judgements are required in determining and choosing discount rates/investment return,
mortality, morbidity, lapse rates, policy dividend, and expenses assumptions relating to long-term life
insurance contracts.

(b) Property and casualty and short-term life insurance contracts

The principal assumptions underlying the estimates includes assumptions in respect of average claim
costs, claims handling costs, claims inflation factors and claim numbers for each accident year which are
determined based on the Group’s past claim experiences. Judgement is used to assess the extent to which
external factors such as judicial decisions and government legislation affect the estimates.

Other key assumptions include delays in settlement, etc.

(c) Reinsurance
The Group limits its exposure to losses from insurance operations mainly through participation in
reinsurance arrangements. The majority of the business ceded is placed on the quota share basis and
the surplus basis with retention limits varying by product lines. Amounts recoverable from reinsurers are
estimated in a manner consistent with the assumptions used for ascertaining the underlying policy benefits
and are presented in the statement of financial position as reinsurance contract assets or liabilities.

Even though the Group may have reinsurance arrangements, it is not relieved of its direct obligations to its
policyholders and thus a credit exposure exists with respect to reinsurance ceded, to the extent that any
reinsurer is unable to meet its obligations assumed under such reinsurance agreements.

150 Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd.
41. RISK AND CAPITAL MANAGEMENT (CONTINUED)
(2) MARKET RISK
Market risk is the risk of changes in fair value of financial instruments and future cash flows from
fluctuation of market prices, which includes three types of risks from volatility of foreign exchange rates
(foreign currency risk), market interest rates (interest rate risk) and market prices (price risk).

(a) Foreign currency risk

Foreign currency risk is the risk of loss resulting from changes in foreign currency exchange rates.
Fluctuations in exchange rates between the RMB and other currencies in which the Group conducts
business may affect its financial position and results of operations. The foreign currency risk facing the
Group mainly comes from movements in the USD/RMB and HKD/RMB exchange rates. The Group sets
limitation to its position of foreign currency, monitors the size of foreign currency position, and limits the
foreign currency position within the threshold set by utilizing hedging strategy.

(b) Price risk

The Group’s price risk exposure relates to financial assets and liabilities whose values will fluctuate as a
result of changes in market prices (other than those arising from interest rate risk or foreign currency risk),
which mainly include listed equity securities and security investment funds classified as equity financial
assets at fair value through other comprehensive income and financial assets at fair value through profit or
loss, and related insurance contracts with direct participation features.

The above financial instruments and insurance contracts are exposed to price risk because of changes in
market prices, where changes are caused by factors specific to the individual financial instruments or their
issuers, or factors affecting all similar financial instruments traded in the market.

The Group manages price risks through balanced asset allocation, dynamic portfolio management and
diversification of investments, etc.

(c) Interest rate risk

FINANCIAL STATEMENTS
The interest rate risks facing the Group mainly comes from the insurance segment and the banking
segment.

The insurance segment

Interest rate risk of the Group’s insurance segment is the risk that the value/future cash flows of a financial
instrument (mainly include debt investments classified as financial assets at fair value through profit or loss
and financial assets at fair value through other comprehensive income) will fluctuate because of changes
in market interest rates, and the value of insurance contract liabilities will fluctuate because of changes in
market interest rates (discount rate). Since most markets do not have assets of sufficient tenor to match
insurance contract liabilities, an uncertainty arises around the reinvestment of maturing assets.

Floating rate instruments expose the Group to cash flow interest rate risk, whereas fixed rate instruments
expose the Group to fair value interest risk. The Group’s interest rate risk policy requires it to manage
the maturities of interest-bearing financial assets and interest-bearing financial liabilities by maintaining
an appropriate mix of fixed and variable rate instruments. The Group manages the interest rate risk by
extending assets duration, repricing products and adjusting the business structure to match the term
structure and to match the cost and benefit.

Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd. 151
 Notes to the Interim Condensed Consolidated
Financial Information
For the six-month period ended 30 June 2024

41. RISK AND CAPITAL MANAGEMENT (CONTINUED)

(2) MARKET RISK (CONTINUED)
(c) Interest rate risk (Continued)
The banking segment
Interest rate risks of the Group’s banking segment mainly consist of transaction account interest rate risk
and bank account interest rate risk.

Transaction account interest rate risk arises from the change in interest rates and product price of the
transaction account resulting from the change in market interest rates, which in turn affects the profit
or loss for the year. The Group mainly manages the interest rate risk of transaction account by adopting
measures such as the interest rate sensitive limit and daily and monthly stop-loss limit to ensure that the
fluctuations of interest rate and market value of products are within the affordable scope of the Group.

Bank account interest rate risk arises from the mismatch of the maturity date or contract re-pricing date
between interest-earning assets and interest-bearing liabilities. The Group manages bank account interest
rate risk primarily by adjusting the asset/liability pricing structure, regularly monitoring sensitive gaps of
interest rate, analysing characteristics of asset/liability re-pricing, and using an asset/liability management
system to conduct scenario analysis on interest risk.

In respect of the financial assets and liabilities at fair value through profit or loss of the Group’s banking
segment, the interest rate risk arising from this portfolio is not significant. For other financial assets and
liabilities, the Group mainly uses a gap analysis to measure and control the related interest rate risk.

152 Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd.
41. RISK AND CAPITAL MANAGEMENT (CONTINUED)
(3) CREDIT RISK
Credit risks refer to the risk of losses incurred by the inabilities of debtors or counterparties to fulfill their
contractual obligations or by the adverse changes in their credit conditions. The Group is exposed to
credit risks primarily associated with its deposit arrangements with commercial banks, loans and advances
to customers, financial assets at amortized cost and debt financial assets at fair value through other
comprehensive income, reinsurance arrangement with reinsurers, policy loans, margin financing, financial
guarantee contracts and loan commitments, etc. The Group uses a variety of controls to identify, measure,
monitor and report credit risk.

Credit risk management

Credit risk of banking business
The banking business of the Group has formulated a set of credit management processes and internal
control mechanisms, so as to carry out the whole process management of credit business. Credit
management procedures for its corporate and individual loans of comprise credit origination, credit review,
credit approval, disbursement, post credit management. In addition, the banking business of the Group has
formulated procedure manuals for credit management, which clarifies the duties of each part in the credit
management processes, effectively monitoring credit risk and enhancing credit compliance.

Credit risks arising from credit commitments are similar to those of loans and advances. Therefore, financial
guarantees and loan commitments are also subject to the same application, post credit management and
collateral requirements as loan and advances business.

Credit risk of investment business

As to debt investment, the Group rates these investments by internal credit rating policies, selects
counterparties with high credit quality and sets strict entry criteria.

The Group’s debt investment mainly includes domestic government bonds, the Central Bank bills, financial
institution bonds, corporate bonds and debt investment schemes, wealth management investments, etc.

FINANCIAL STATEMENTS
The Group manages the credit risk for these investments mainly through controlling the investment scales,
selecting counterparties within the financial institutions with appropriate credit quality prudently, balancing
the credit risks and rate of return of investment and considering the internal and external credit rating
information comprehensively.

Credit risk of insurance business

The Group evaluated the credit rating of the reinsurance companies before signing the reinsurance
contracts, and chose the reinsurance companies with higher credit quality to reduce the credit risk.

The limits of policy loans are based on the cash values of valid insurance policies, with appropriate
discounts, and the validity periods of policy loans are within the validity periods of insurance policies. The
credit risk associated with policy loans did not have material impact on the Group’s consolidated financial
statements.

Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd. 153
 Notes to the Interim Condensed Consolidated
Financial Information
For the six-month period ended 30 June 2024

41. RISK AND CAPITAL MANAGEMENT (CONTINUED)

(3) CREDIT RISK (CONTINUED)
The following table presents the credit risk exposure of the financial assets under the scope of expected
credit loss. Without considering guarantee or any other credit enhancement measures, for on-balance sheet
assets, the maximum credit risk exposure is presented as the net carrying amount of the financial assets:

30 June 2024 (Unaudited)

Carrying amount Maximum credit
(in RMB million) Stage 1 Stage 2 Stage 3 risk exposure

Cash and amounts due from banks and

other financial institutions 831,850 – – 831,850
Balances with the Central Bank and statutory
deposits for insurance operations 317,646 – – 317,646
Financial assets purchased under reverse
repurchase agreements 116,868 – 387 117,255
Accounts receivable 39,615 26 20 39,661
Finance lease receivable 198,529 3,679 731 202,939
Loans and advances to customers 3,194,095 106,387 14,174 3,314,656
Financial assets at amortized cost 1,172,017 12,423 42,856 1,227,296
Debt financial assets at fair value through
other comprehensive income 2,841,840 2,488 1,263 2,845,591
Other assets 138,903 926 9,899 149,728
Subtotal 8,851,363 125,929 69,330 9,046,622
Credit commitments 1,896,513 5,481 358 1,902,352
Total 10,747,876 131,410 69,688 10,948,974

31 December 2023 (Audited)

Carrying amount Maximum credit
(in RMB million) Stage 1 Stage 2 Stage 3 risk exposure

Cash and amounts due from banks and

other financial institutions 804,077 – – 804,077
Balances with the Central Bank and statutory
deposits for insurance operations 285,879 – – 285,879
Financial assets purchased under reverse
repurchase agreements 167,073 200 387 167,660
Accounts receivable 35,528 46 62 35,636
Finance lease receivable 175,988 4,021 665 180,674
Loans and advances to customers 3,219,967 83,167 14,988 3,318,122
Financial assets at amortized cost 1,187,863 16,505 38,985 1,243,353
Debt financial assets at fair value through
other comprehensive income 2,631,520 3,564 1,924 2,637,008
Other assets 95,640 676 10,887 107,203
Subtotal 8,603,535 108,179 67,898 8,779,612
Credit commitments 1,932,131 4,621 320 1,937,072
Total 10,535,666 112,800 68,218 10,716,684

154 Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd.
41. RISK AND CAPITAL MANAGEMENT (CONTINUED)
(4) LIQUIDITY RISK
Liquidity risk is the risk of not having access to sufficient funds or being unable to realize an asset in a
timely manner at a reasonable price to meet the Group’s obligations as they become due.

The Group is exposed to liquidity risk on insurance policies that permit surrender, withdrawal or other
forms of early termination. When surrender, withdrawal or other forms of early termination happens, the
Group determines the amounts that are payable on demand to policyholders in accordance with the terms
of insurance contracts, which are usually the unearned premiums or the cash values of the relevant part of
contracts, after deducting the applicable early termination fees. The Group seeks to manage its liquidity
risk by matching to the extent possible the duration of its investment assets with the duration of its
insurance policies and to ensure that the Group is able to meet its payment obligations and fund its lending
and investment operations on a timely basis.

The banking business of the Group is exposed to potential liquidity risk. The Group utilizes multiple
regulatory methods, establish comprehensive liquidity risk management framework, effectively recognize,
measure, monitor and control liquidity risk, maintain sufficient liquidity level to satisfy various funds
requirement and to face adverse market status. In case of monitoring liquidity risks effectively, the Group
pays attention to the funds resources and diversified utilization, keeps relatively high liquidity assets
consistently. The Group monitors the sourcing and usage of funds, deposit to loan ratio, and quick ratio
on a daily basis. Moreover, when adopting various benchmarks for management of liquidity risk, the Group
compares the expected results against the ones derived from stress tests, critically assesses the potential
impact to the future liquidity risk, and formulates remedial actions according to specific situations. The
Group seeks to mitigate the liquidity risk of the banking business by optimizing the assets and liabilities
structure, and maintaining stable deposits, etc.

FINANCIAL STATEMENTS

Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd. 155
 Notes to the Interim Condensed Consolidated
Financial Information
For the six-month period ended 30 June 2024

41. RISK AND CAPITAL MANAGEMENT (CONTINUED)

(4) LIQUIDITY RISK (CONTINUED)
The table below summarizes the remaining contractual maturity profile of the financial assets, financial
liabilities, insurance contract liabilities and reinsurance contract liabilities of the Group based on
undiscounted contractual cash flows/expected cash flows:

30 June 2024 (Unaudited)

Repayable Less than 3 to 12 1 to 5 Over
(in RMB million) Undated on demand 3 months months years 5 years Total

Cash and amounts due from banks and other financial

institutions – 287,502 120,411 198,691 217,190 9,914 833,708
Balances with the Central Bank and statutory deposits for
insurance operations 209,492 93,168 1,062 5,442 9,224 – 318,388
Financial assets purchased under reverse repurchase
agreements – 1,350 113,945 847 1,218 – 117,360
Accounts receivable – 144 8,836 19,963 11,617 467 41,027
Reinsurance contract assets – – (982) 6,673 13,479 36,858 56,028
Finance lease receivable – 1,766 30,524 75,073 120,548 895 228,806
Loans and advances to customers – 14,151 737,201 1,065,319 1,232,247 679,283 3,728,201
Financial assets at fair value through profit or loss 1,034,481 14,330 42,967 164,029 516,623 520,889 2,293,319
Financial assets at amortized cost – 22,550 73,416 281,173 498,324 643,386 1,518,849
Debt financial assets at fair value through other
comprehensive income – 536 57,772 201,547 633,598 3,288,296 4,181,749
Equity financial assets at fair value through other
comprehensive income 299,356 – – – – – 299,356
Other assets – 107,679 32,870 30,116 4,026 1,323 176,014
1,543,329 543,176 1,218,022 2,048,873 3,258,094 5,181,311 13,792,805
Due to banks and other financial institutions – 464,706 160,087 286,051 78,225 1,385 990,454
Financial liabilities at fair value through profit or loss 105 2,827 139,658 1,527 103 338 144,558
Assets sold under agreements to repurchase – – 249,223 5,866 – – 255,089
Accounts payable – 3,313 629 2,960 632 2 7,536
Insurance contract liabilities – – 58,935 59,181 10,360 8,552,576 8,681,052
Reinsurance contract liabilities – – (238) 62 630 – 454
Customer deposits and payables to brokerage customers – 1,324,619 721,598 737,307 986,798 990 3,771,312
Bonds payable – – 98,708 493,290 228,569 29,662 850,229
Lease liabilities – 215 1,003 2,950 5,533 313 10,014
Other liabilities – 85,373 72,496 59,694 69,384 9,324 296,271
105 1,881,053 1,502,099 1,648,888 1,380,234 8,594,590 15,006,969
Derivative cash flows
Derivative financial instruments settled on a net basis – 7 599 2,164 1,165 89 4,024
Derivative financial instruments settled on a gross basis
Cash inflow – 2,963 1,362,565 1,277,951 226,220 – 2,869,699
Cash outflow – (3,106) (1,364,348) (1,273,550) (224,997) – (2,866,001)
– (143) (1,783) 4,401 1,223 – 3,698

156 Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd.
41. RISK AND CAPITAL MANAGEMENT (CONTINUED)
(4) LIQUIDITY RISK (CONTINUED)
31 December 2023 (Audited)
Repayable Less than 3 to 12 1 to 5 Over
(in RMB million) Undated on demand 3 months months years 5 years Total

Cash and amounts due from banks and other

financial institutions – 269,825 235,400 116,808 177,595 108 799,736
Balances with the Central Bank and statutory deposits
for insurance operations 227,230 43,746 648 1,610 13,650 – 286,884
Financial assets purchased under reverse repurchase
agreements – 728 161,088 5,356 622 – 167,794
Accounts receivable – 277 7,695 18,493 9,804 461 36,730
Insurance contract assets – – (1) 8 (3) – 4
Reinsurance contract assets – – 3,112 7,244 9,396 37,733 57,485
Finance lease receivable – 1,854 29,223 72,867 99,471 640 204,055
Loans and advances to customers – 12,050 835,038 955,224 1,246,550 718,242 3,767,104
Financial assets at fair value through profit or loss 971,867 11,631 39,357 96,894 457,670 354,002 1,931,421
Financial assets at amortized cost – 21,212 112,933 231,570 520,938 657,214 1,543,867
Debt financial assets at fair value through other
comprehensive income – 809 54,303 179,775 694,082 3,150,720 4,079,689
Equity financial assets at fair value through other
comprehensive income 264,877 – – – – – 264,877
Other assets – 75,107 25,703 24,523 4,580 1,298 131,211
1,463,974 437,239 1,504,499 1,710,372 3,234,355 4,920,418 13,270,857
Due to banks and other financial institutions – 285,004 363,817 256,511 70,989 1,628 977,949
Financial liabilities at fair value through profit or loss 120 2,190 44,337 1,857 146 – 48,650
Assets sold under agreements to repurchase – – 236,229 5,700 – – 241,929
Accounts payable – 3,815 713 3,560 768 2 8,858

FINANCIAL STATEMENTS
Insurance contract liabilities – – 73,294 60,148 3,474 8,465,604 8,602,520
Reinsurance contract liabilities – – – 82 100 – 182
Customer deposits and payables to brokerage customers – 1,296,804 744,754 577,390 992,925 – 3,611,873
Bonds payable – – 300,756 436,516 216,078 41,389 994,739
Lease liabilities – 225 1,022 3,048 6,897 367 11,559
Other liabilities – 48,248 45,562 47,915 89,733 14,209 245,667
120 1,636,286 1,810,484 1,392,727 1,381,110 8,523,199 14,743,926
Derivative cash flows
Derivative financial instruments settled on a net basis – (8) 552 (376) (119) 45 94
Derivative financial instruments settled on a gross basis
Cash inflow – 3,344 1,146,342 1,047,088 235,881 – 2,432,655
Cash outflow – (4,303) (1,146,911) (1,050,180) (235,306) – (2,436,700)
– (959) (569) (3,092) 575 – (4,045)

Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd. 157
 Notes to the Interim Condensed Consolidated
Financial Information
For the six-month period ended 30 June 2024

41. RISK AND CAPITAL MANAGEMENT (CONTINUED)

(4) LIQUIDITY RISK (CONTINUED)
The table below summarizes the remaining contractual maturity profile of the credit commitments of the
Group:

Less than 1 to 3 3 to 12 1 to 5 Over

(in RMB million) 1 month months months years 5 years Total

30 June 2024
Credit commitments (Unaudited) 1,051,598 223,668 579,748 42,668 7,965 1,905,647
31 December 2023
Credit commitments (Audited) 1,127,398 285,355 482,993 43,555 7,668 1,946,969

Management expects the credit commitments will not be entirely used during the commitment period.

(5) MISMATCHING RISK OF ASSETS AND LIABILITIES

The objective of the Group’s asset and liability management is to match the maturity and interest rates of
assets and liabilities. Under the current constraints of the shortage of long-term interest rate bond market,
however, the Group does not have sufficient long-duration assets for investment to match the duration of
insurance and investment contract liabilities. As permitted by law regulations and market conditions, the
Group actively invests in preferred stocks and other broad-term duration assets, and continuously improves
the allocation of long-duration assets, considering the requirements for asset-liability duration matching
and revenue-cost matching.

(6) OPERATIONAL RISK

Operational risk is the risk of loss resulting from inadequate or failure of proper internal controls on
business processes, employees and systems or from uncontrollable external events. Operational risk in this
context includes legal risk, but does not include strategic risk and reputational risk. The Group is exposed
to many types of operational risks in the conduct of its business. The Group manages operational risk by
establishing and continuously improving risk management framework, formalizing policies and standards,
using management tools and reporting mechanism, strengthening staff education and training.

(7) CAPITAL MANAGEMENT

The Group’s capital requirements are primarily dependent on the scale, products of insurance business,
and the type of business that it undertakes, as well as the industry and geographic location in which it
operates. The primary objectives of the Group’s capital management are to ensure that the Group complies
with externally imposed capital requirements and to maintain healthy capital ratios in order to support its
business and to maximize shareholders’ value.

The Group manages its capital requirements by assessing shortfalls, if any, between the reported and
the required capital levels on a regular basis. Adjustments to current capital levels are made in light of
changes in economic conditions and risk characteristics of the Group’s activities. In order to maintain or
adjust the capital structure, the Group may adjust the amount of dividends paid, return capital to ordinary
shareholders or issue capital securities.

The Group computes solvency margin ratios and recognizes, assesses and manages related risks in
accordance with the Regulatory Rules on Solvency of Insurance Companies (II), the Notice on the
Implementation of Regulatory Rules on Solvency of Insurance Companies (II), and the National Financial
Regulatory Administration’s Circular on Improving Regulatory Standards for Solvency of Insurance
Companies. The Group was compliant with the requirements of regulatory authorities for solvency margin
ratios as of June 30, 2024.

158 Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd.
42. CASH AND CASH EQUIVALENTS
Cash and cash equivalents include the following items (original maturities within three months):

30 June 2024 31 December 2023

(in RMB million) (Unaudited) (Audited)

Cash
Cash and amounts due from banks and other financial institutions
Cash on hand 3,342 3,690
Term deposits 2,466 20,158
Due from banks and other financial institutions 185,447 169,477
Placements with banks and other financial institutions 72,458 80,373
Balances with the Central Bank 92,945 43,432
Subtotal 356,658 317,130
Cash equivalents
Bonds 12,768 3,995
Financial assets purchased under reverse repurchase agreements 113,282 159,347
Subtotal 126,050 163,342
Total 482,708 480,472

43. SIGNIFICANT RELATED PARTY TRANSACTIONS

(1) SHAREHOLDERS HOLDING MORE THAN 5% OF THE COMPANY’S SHARE ARE AS SET OUT
BELOW:
Name of related parties Relationship with the Company

Charoen Pokphand Group Co., Ltd. (“CP Group”) Parent of shareholders

Shenzhen Investment Holdings Co., Ltd. (“SIHC”) Shareholder

FINANCIAL STATEMENTS
As at 30 June 2024, CP Group indirectly held 5.30% (31 December 2023: 5.84%) equity interests in the
Company and is the largest shareholder of the Company.

(2) OTHER MAJOR RELATED PARTIES

Name of related parties Relationship with the Company

Lufax Holding Associate of subsidiaries

Ping An Health Associate of subsidiaries
Ping An HealthKonnect Associate of subsidiaries
OneConnect Associate of subsidiaries

Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd. 159
 Notes to the Interim Condensed Consolidated
Financial Information
For the six-month period ended 30 June 2024

43. SIGNIFICANT RELATED PARTY TRANSACTIONS (CONTINUED)

(3) THE SUMMARY OF SIGNIFICANT MAJOR RELATED PARTY TRANSACTIONS IS AS
FOLLOWS:
For the six-month period ended 30 June 2024 2023
(in RMB million) (Unaudited) (Unaudited)

CP Group
Premiums received 53 14
Claims paid 17 2
Rental revenue from 13 13
Interest expenses to 1 –
Other revenues from – 2
Other expenses to 2 –
SIHC
Premiums received 1 2
Interest revenue from 19 10
Interest expenses to 25 22
Other expenses to – 3
Lufax Holding
Interest revenue from 6 11
Interest expenses to 162 282
Other revenues from 673 1,105
Other expenses to 706 916
Ping An Health
Interest expenses to 26 46
Other revenues from 249 302
Other expenses to 549 687
Ping An HealthKonnect
Interest revenue from 12 13
Interest expenses to 46 25
Other revenues from 9 81
Other expenses to 2 4
OneConnect
Interest expenses to 13 4
Other revenues from 719 741
Other expenses to 876 1,001

160 Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd.
43. SIGNIFICANT RELATED PARTY TRANSACTIONS (CONTINUED)
(4) THE SUMMARY OF BALANCES OF THE GROUP WITH MAJOR RELATED PARTIES IS AS
FOLLOWS:
30 June 2024 31 December 2023
(in RMB million) (Unaudited) (Audited)

CP Group
Customer deposits 103 117
SIHC
Customer deposits 3,298 2,657
Loans and advances to customers 1,607 745
Lufax Holding
Customer deposits 16,154 10,880
Loans and advances to customers 806 –
Accounts payable and other payables 2,228 2,698
Accounts receivable and other receivables 4,219 147
Ping An Health
Customer deposits 3,836 2,704
Accounts payable and other payables 646 1,211
Accounts receivable and other receivables 128 93
Ping An HealthKonnect
Customer deposits 1,178 667
Loans and advances to customers 409 871
Accounts payable and other payables 95 126
Accounts receivable and other receivables 30 177
OneConnect
Customer deposits 456 785
Derivative financial liabilities 53 38

FINANCIAL STATEMENTS
Accounts payable and other payables 1,473 1,302
Accounts receivable and other receivables 1,111 866

In addition to transactions and balances stated above, the Group transferred 100% shareholding of Gem
Alliance Limited to Lufax Holding, which issued convertible bonds amounting to USD1,953.8 million to the
Group as the consideration in 2016, and pays interest to the Group every six months at an annual rate of
0.7375%. In December 2022, Lufax Holding entered into an amended and supplemental agreement with the
Group pursuant to which the maturity date of 50% of the outstanding principal amount of the convertible
bonds was extended from October 2023 to October 2026 and the remaining 50% outstanding principal
amount was redeemed. As at 30 June 2024, the par value of these convertible bonds held by the Group
amounted to USD976.9 million.

Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd. 161
 Notes to the Interim Condensed Consolidated
Financial Information
For the six-month period ended 30 June 2024

44. COMMITMENTS
(1) CAPITAL COMMITMENTS
The Group had the following capital commitments relating to investments and property development
projects:

30 June 2024 31 December 2023

(in RMB million) (Unaudited) (Audited)

Contracted, but not provided for 8,848 9,751

Authorized, but not contracted for 6,535 6,469
15,383 16,220

(2) CREDIT COMMITMENTS

30 June 2024 31 December 2023
(in RMB million) (Unaudited) (Audited)

Bank acceptances 677,911 744,855

Guarantees issued 98,282 92,852
Letters of credit issued 170,294 148,823
Subtotal 946,487 986,530
Unused limit of credit cards and loan commitments 959,160 960,439
Total 1,905,647 1,946,969
Credit risk weighted amounts of credit commitments 661,178 594,788

Credit commitments disclosed in the table above do not include the financial guarantees accounted for as
insurance contracts by the Group.

(3) INVESTMENT COMMITMENTS

The Group’s investment commitments to associates and joint ventures are as follows:

30 June 2024 31 December 2023

(in RMB million) (Unaudited) (Audited)

Contracted but not provided for 6,934 7,839

162 Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd.
45. CONTINGENT LIABILITIES
Owing to the nature of the insurance, bank and other related business, the Group is involved in
contingencies and legal proceedings in the ordinary course of business, including, but not limited to, being
the plaintiff or the defendant in litigations and arbitrations. Legal proceedings mostly involve claims on the
Group’s insurance policies and other claims. Provision has been made for probable losses to the Group,
including those claims where management can reasonably estimate the outcome of the lawsuits taking into
account any applicable legal advice.

No provision has been made for pending assessments, lawsuits or possible violations of contracts when
the outcome cannot be reasonably estimated or management believes the probability is low or remote. For
pending lawsuits, management also believes that any resulting liabilities will not have a material adverse
effect on the financial position or operating results of the Group or any of its subsidiaries.

46. EVENTS AFTER THE REPORTING PERIOD

(1) PROFIT DISTRIBUTION
On 22 August 2024, the Board of Directors of the Company approved the Profit Distribution Plan of the
Company for Interim Dividend of 2024, and declared an interim cash dividend of RMB0.93 (tax inclusive) per
share for 2024 as disclosed in Note 15.

(2) SCOPE OF CONSOLIDATION

As of 30 June 2024, the Group held a total of 41.40% equity interest in Lufax Holding through its
wholly-owned subsidiaries An Ke Technology Company Limited (“An Ke Technology”) and China Ping An
Insurance Overseas (Holdings) Limited (“PAOH”).

Pursuant to Lufax Holding’s special dividend plan approved at its 2023 annual general meeting, its eligible
shareholders may elect to receive the special dividend wholly in the form of new shares (the “Scrip
Dividend”). An Ke Technology and PAOH elected for the Scrip Dividend as per the special dividend
plan, and received a total of 509,880,257 new shares allotted and issued by Lufax Holding on 30 July 2024.
According to the final allotment result of Lufax Holding’s special dividend plan, the Group’s aggregate

FINANCIAL STATEMENTS
shareholding in Lufax Holding through An Ke Technology and PAOH increased to 56.82%, and Lufax Holding
became a subsidiary of the Group with effect from 30 July 2024.

(3) CONVERTIBLE BONDS

On 16 July 2024, the Company announced the proposed issue of an aggregate principal amount of USD3.5
billion with interest rate of 0.875% convertible bonds (convertible into the Company’s H shares) due 2029
under a general mandate, with an initial conversion price of HKD43.71 per H share (subject to adjustments).
The convertible bonds were issued on 22 July 2024 and have been listed and traded on The Stock Exchange
of Hong Kong Limited since 23 July 2024.

Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd. 163
 Notes to the Interim Condensed Consolidated
Financial Information
For the six-month period ended 30 June 2024

47. COMPARATIVE FIGURES

Certain comparative figures have been reclassified to conform to the current period’s presentation.

48. APPROVAL OF THE FINANCIAL INFORMATION

The interim condensed consolidated financial information was approved and authorized for issue by the
Board of Directors of the Company on 22 August 2024.

164 Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd.
Glossary

In this Report, unless the context otherwise indicates, the following expressions shall have the following
meanings:

Ping An, Company, the Company, Ping An Insurance (Group) Company of China, Ltd.
Group, the Group, Ping An Group

Ping An Life Ping An Life Insurance Company of China, Ltd., a subsidiary of the
Company

Ping An Health Insurance Ping An Health Insurance Company of China, Ltd., a subsidiary of the
Company

Ping An Annuity Ping An Annuity Insurance Company of China, Ltd., a subsidiary of

the Company

Ping An P&C, Ping An Property & Ping An Property & Casualty Insurance Company of China, Ltd., a
Casualty subsidiary of the Company

Ping An Bank Ping An Bank Co., Ltd., a subsidiary of the Company

SDB, Shenzhen Development Bank Shenzhen Development Bank Co., Ltd., an associate of the Company
since May 2010, became a subsidiary of the Company in July 2011. It
was renamed “Ping An Bank Co., Ltd.” on July 27, 2012

Ping An Wealth Management Ping An Wealth Management Co., Ltd., a subsidiary of Ping An Bank

Ping An Trust Ping An Trust Co., Ltd., a subsidiary of the Company

Ping An Securities Ping An Securities Co., Ltd., a subsidiary of Ping An Trust

Ping An Financial Leasing Ping An International Financial Leasing Co., Ltd., a subsidiary of the
Company

Ping An Asset Management Ping An Asset Management Co., Ltd., a subsidiary of the Company

PAOH, Ping An Overseas Holdings China Ping An Insurance Overseas (Holdings) Limited, a subsidiary
of the Company

Ping An Financial Technology Shenzhen Ping An Financial Technology Consulting Co., Ltd., a
subsidiary of the Company

An Ke Technology An Ke Technology Company Limited, a subsidiary of Ping An

Financial Technology
OTHER INFORMATION

Ping An Technology Ping An Technology (Shenzhen) Co., Ltd., a subsidiary of Ping An

Financial Technology

Ping An Finserve Shenzhen Ping An Finserve Co., Ltd., a subsidiary of Ping An

Financial Technology

Lufax Holding Lufax Holding Ltd., an associate of Ping An Financial Technology

during the Reporting Period

Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd. 165
 Glossary

Lufax Shanghai Lufax Information Technology Co., Ltd., a subsidiary of

Lufax Holding

E-wallet Ping An E-wallet Electronic Commerce Co., Ltd., a subsidiary of Ping

An Financial Technology

Ping An Health Ping An Healthcare and Technology Company Limited, an associate

of Ping An Financial Technology

OneConnect OneConnect Financial Technology Co., Ltd., an associate of Ping An

Financial Technology

Autohome Autohome Inc., a subsidiary of the Company

New Founder Group New Founder Holding Development Company Limited, a subsidiary
of Ping An Life

Founder Securities Founder Securities Co., Ltd., a subsidiary of New Founder Group

CP Group Ltd. Charoen Pokphand Group Company Limited, a parent company of

Charoen Pokphand Group

RMB Chinese Renminbi unless otherwise specified

CAS The Accounting Standards for Business Enterprises and other

relevant regulations issued by the Ministry of Finance of the People’ s
Republic of China

IFRS The International Financial Reporting Standards issued by the

International Accounting Standards Board

Written premium All premiums received from insurance policies underwritten by the
Company, which are prior to the significant insurance risk testing
and separation of hybrid contracts

HKEX Hong Kong Exchanges and Clearing Limited

SEHK The Stock Exchange of Hong Kong Limited

SEHK Listing Rules The Rules Governing the Listing of Securities on The Stock Exchange
of Hong Kong Limited

SSE Shanghai Stock Exchange

SSE Listing Rules The Rules Governing the Listing of Stocks on Shanghai Stock
Exchange

Corporate Governance Code The Corporate Governance Code as contained in Appendix C1 to the
SEHK Listing Rules

SFO The Securities and Futures Ordinance (Chapter 571 of the Laws of
Hong Kong)

166 Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd.
Model Code The Model Code for Securities Transactions by Directors of Listed
Issuers as contained in Appendix C3 to the SEHK Listing Rules

Articles of Association The Articles of Association of Ping An Insurance (Group) Company

of China, Ltd.

PBC The People’ s Bank of China

Ministry of Finance The Ministry of Finance of the People’ s Republic of China

CBIRC The former China Banking and Insurance Regulatory Commission

NFRA The National Financial Regulatory Administration

CSRC China Securities Regulatory Commission

OTHER INFORMATION

Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd. 167
 Corporate Information

REGISTERED NAMES POSTAL CODE

Full name of the Company (Chinese/English) 518033
中國平安保險（集團）股份有限公司
Ping An Insurance (Group) Company of China, Ltd. COMPANY WEBSITE
www.pingan.cn
Short name of the Company (Chinese/English)
中國平安 DESIGNATED MEDIA FOR A-SHARE INFORMATION
Ping An DISCLOSURE
China Securities Journal
LEGAL REPRESENTATIVE Shanghai Securities News
Ma Mingzhe Securities Times
Securities Daily
TYPES OF SECURITIES AND LISTING PLACES
A share The Shanghai Stock Exchange WEBSITES FOR PUBLICATION OF REGULAR
H share The Stock Exchange of Hong Kong Limited REPORTS
www.sse.com.cn
STOCK SHORT NAMES AND CODES www.hkexnews.hk
A share 中國平安 601318
H share Ping An 2318 (HKD counter) LOCATION OF REGULAR REPORTS AVAILABLE
Ping An-R 82318 (RMB counter) FOR INSPECTION
Board Office of the Company
AUTHORIZED REPRESENTATIVES
Cai Fangfang CONSULTING ACTUARY
Sheng Ruisheng Ernst & Young (China) Advisory Limited

SECRETARY OF THE BOARD OF DIRECTORS AUDITORS AND PLACES OF BUSINESS

Sheng Ruisheng Domestic Auditor
Ernst & Young Hua Ming LLP
COMPANY SECRETARY Level 17, Ernst & Young Tower, Oriental Plaza,
Sheng Ruisheng No.1 East Changan Avenue,
Dongcheng District, Beijing, P.R. China
REPRESENTATIVE OF SECURITIES AFFAIRS
Shen Xiaoxiao Names of Certified Public Accountants
Wu Cuirong
TELEPHONE Fan Yujun
+86 400 8866 338
International Auditor
FAX Ernst & Young (Registered PIE Auditor)
+86 755 8243 1029 27/F, One Taikoo Place
979 King’s Road,
E-MAIL Quarry Bay, Hong Kong
[email protected]
[email protected] LEGAL ADVISER
DLA Piper Hong Kong
REGISTERED ADDRESS 25th Floor, Three Exchange Square,
47th, 48th, 109th, 110th, 111th, 112th Floors, 8 Connaught Place,
Ping An Finance Center, Central, Hong Kong
No.5033 Yitian Road,
Futian District, H SHARE REGISTRAR
Shenzhen Computershare Hong Kong Investor Services
Limited
PLACE OF BUSINESS 17M Floor, Hopewell Centre,
47th, 48th, 108th, 109th, 110th, 111th, 112th Floors, 183 Queen’s Road East,
Ping An Finance Center, Wan Chai, Hong Kong
No.5033 Yitian Road,
Futian District, AMERICAN DEPOSITARY SHARES REGISTRAR
Shenzhen The Bank of New York Mellon

168 Interim Report 2024 Ping An Insurance (Group) Company of China, Ltd.