(Hong Kong, Shanghai, 7 June 2018) Forbes released the 2018 Global 2000. Thanks to the strong performance in market capitalization and strong growth in multiple performance indicators, including revenue, profit and assets, Ping An Insurance (Group) Company of China, Ltd. (hereafter “Ping An” , HKEx: 2318; SSE: 601318) has featured on the list for 14 consecutive years. This year it ranks 10th place for the first time, up by 6 places compared to last year, and continues to top global insurers as a diversified player. Ping An ranks 5th among shortlisted companies in Mainland China, and is the top-ranked among Chinese insurers. In addition, the Group is in 9th place among global financial companies this year.
Forbes Magazine compiles the “Forbes Global 2000” rankings annually. The list is regarded as one of the world’s most authoritative and closely-watched corporate rankings, and is based on the integrated rating of revenue, profit, assets and market capitalization. Based on the 2018 list, the top 10 companies are ICBC, China Construction Bank, JP Morgan Chase, Berkshire Hathaway, Agricultural Bank of China, Bank of America, Wells Fargo, Apple, Bank of China and Ping An. Among them, Ping An had revenues of US$141.62 billion, profit of US$13.89 billion, assets of US$1,066.37 billion and market capitalization of US$181.4 billion.
Thanks to the improvement in services quality and application of innovative technologies, Ping An has maintained a steady and healthy growth over the years. In 2017, Ping An’s revenue reached RMB890.882 billion, up 25% year on year; net profit amounted to RMB99.978 billion, up 38.2% year on year; net profit attributable to shareholders of the parent company soared by 42.8% year on year to RMB89.088 billion. The Company’s assets totaled about RMB6.49 trillion, up 16.4% from the beginning of the year. The value of the Group is highly recognized by the market. The share price of Ping An rose significantly in 2017 (up 101.4% in A shares, 114.1% in H shares). Its market capitalization reached RMB1.2 trillion, making it the top insurance company globally.
Ping An continued to deepen the two-pronged strategy of “finance + technology” in 2017. The strategy helped Ping An increase efficiency, reduce costs, improve experience, enhance risk prevention and create the ultimate customer experience through innovation of products, services and technology, and thus increased the Group’s value tremendously. For example, Ping An Property & Casualty debuted the 510 Ultra-speed On-Site City Inspection and One-click Arrangement services in the global industry. A total of 95.4% on-site cases for auto insurance were handled within 10 minutes across the prefecture-level cities nationwide. Meanwhile, Ping An Life launched the AI Customer Services to intelligently identify customers and their needs, such as online applications for insurance claim settlements, insurance policy information confirmation and beneficiary changes, in order to effectively resolve the issues of slow authentication and settlement in traditional life insurance businesses. In 2017, Ping An's NPS (Net Promoter Score) increased by 28 pps to 36% when compared with its debut in 2014.
Furthermore, with the core technologies of smart perception, AI, blockchain, cloud computing and security as the foundation, Ping An built the five major ecosystems of “financial services, health care, auto services, real estate services and smart city services”, which focus on scenarios of “clothing, food, housing and transportation”. It generated core technologies for output and continuously expands its scope of services as well as obtains asset-light revenue.
In the financial services ecosystem, Ping An completed the linkage of assets and capital through “Open Platform + Open Market”, and successfully launched several financial innovative platforms such as Lufax Holdings and OneConnect. In the health care ecosystem, Ping An has built the comprehensive mode of “Patients-Providers-Payers”, and incubated healthtech platforms such as Ping An Good Doctor, Ping An Healthcare Technology and Wanjia Healthcare. In the auto services ecosystem, Ping An has built a full-services trading and finance service platform of “Buying–Using–Maintenance–Selling” of cars through Autohome, Ping An Bank, Ping An Property & Casualty Insurance and cars selling platform. In the real estate services ecosystem, Ping An Haofang has built the industry-leading business model. In the smart city ecosystem, Ping An has laid out “Smart City Cloud” in eight key areas: government affairs, finance, security, health care, education, real estate, environmental protection and daily life.
Ping An attached great importance to the R&D and innovation of technology as always. In 2017, the number of Ping An’s patent applications increased by 262% to 3,030, covering various technical fields such as AI, blockchain, cloud computing, big data and security. Ping An’s face recognition technology has an accuracy rate of 99.8% and its voiceprint recognition technology has a text-dependent accuracy rate of 99.7%, both are world-leading levels. Ping An’s medical image reading technology ranked first in lung nodule detection and false positive reduction with precision rates of 95.1% and 96.8% respectively, according to test results of LUNA, an international authoritative assessment in the medical imaging field. Ping An’ s pioneering “AI + big data” models for forecasting influenza and hand, foot and mouth disease have precision rates above 90%, and technology will enable Ping An to create new drivers of earnings.
We’ll celebrate the 40th anniversary of China’s reform and opening-up as well as the 30th anniversary of Ping An this year. Since it was founded, Ping An has always tied itself to the national destiny and upheld a philosophy of “seeking survival via competition and pursuing development via innovation.” For 30 years, Ping An has been a benchmark and role model for corporate governance in China, and has consistently achieved excellent results. In the past 15 years, Ping An’s total assets and net profit grew by a CAGR of nearly 30%.
Ping An commented, looking forward, the Group will pursue the strategic goal of “world-leading technology-powered personal financial services group” guided by technology with accelerated pace, and will focus on the two major aspects of pan financial assets and pan healthcare, and seize the development opportunity brought by the global smart technology. Ping An will leverage its advantages such as talent, capital, scenarios and data with leading technologies and applications, and committed to becoming one of the leaders in the industry and technology. Ping An will further enhance products and services experience to promote steady growth of business and continue to create value for customers and shareholders.