expertise makes life simple95511 customer service: 2 million service cases are handled per day,...

Expertise Makes Life Simple

- About Ping An Insurance (Group) Company of China

Contents

02

Company Overview Three Business Lines

Milestones

Corporate Governance

Strategies and Culture

Retail Integrated Finance & Insurance

Business

Corporate Integrated Finance, Banking

Business and Asset Management Business

Technology Business & Ecosystems

03



Company Overview

Milestones

04

2004 2007 2010 2013 2016 2018

2019

CAGR:

25.8%

8,222.9 billion

CAGR:

21.5%

1,168.8

billion

CAGR:

31.8%

118.3

billionCAGR:

30.3%

164.4

billion

2004 2007 2010 2013 2016 2018

2019

2004 2007 2010 2013 2016 2018

2019

2004 2007 2010 2013 2016 2018

2019

Business performance since listing of Ping An

• In the past 15 years, total assets, total

revenue and net profit has a CAGR of

nearly 30%

• The tax amount has a CAGR of nearly

32%

• Ranked 29th in 2019 Fortune 500

• Ranked 7th in 2019 Forbes 2000

• Ranked 1st in market cap among global

insurers

• Ranked 1st among global insurance

brands

Assets Revenue

Net profit Total tax

05

A typical Ping An Day

Revenue: Daily revenue of 3.2 billion，2019 accumulated revenue exceeded 1.17 trillion

Tech R&D: 35 thousand R&D employees

nearly 110 thousand technology employees

Tax: Daily tax at 320 million，2019 accumulated tax of over 110 billion

Scale of Employment: 1.54 million staff and agents,

1 out of 1,000 Chinese are employed by Ping An

Net Profit: Daily net profit at 450 million，2019 accumulated net profit of over 160 billion

Scale of Client: 200 million clients,

1 out of 7 Chinese are clients of Ping An

Claims: Daily claims at 520 million，total claims in 2019 of over 190 billion

95511 Customer Service: 2 million service cases are

handled per day, serve customers for 730 million times

per year

06

Hong Kong

Shenzhen

Stages of Ping An：Small to Big，One Step for a Decade

First

Decade

Second

Decade

Third

Decade

Fourth

Decade

• Building institutional

platform

• Exploring path for

modern insurance

• Focusing on insurance

development

• Exploring integrated

financial module

• Strengthening integrated

financial practice

• Exploring“Finance

+Technology”

• Deepening“Finance

+Technology”

• Exploring“Finance +

Ecosystem”

Ping An Trust

1986 1988 1991 1992

Ping An Technology

2010 2006

WangLiTong Big Data

Center

2005

Acquired Shenzhen

Development Bank

IPO of Ping An Good

Doctor

The “finance +

technology” strategy

2016 20182017

2004

Ping An Bank

1994

Ping An Life

1995 2002 2003

2007200820092011

2019

Retail

customers

exceed 200

million

IPO of OneConnect

Ping An Financial

Leasing

2014 20152013

The world’s largest

insurance group

07

2012

Milestones of Ping An

The World’s Top

Insurer Brand

Market Cap Exceeded

RMB1 Trillion

OneConnect

Business

Global

Systemically

Important

Financial

Institution

Ping An Good

Doctor

First 50 of the

Fortune 500

Launch of the

Ping An Rural

Communities

Support

Launched

Internet+ Strategy

Becomes a Fortune 500

Company

Listed in

A- share

Market Cap

Exceeded

RMB100 BillionListed in Hong Kong

Lufax in

preparation

Ping An Fund

Ping An

HealthKonnect

Ping An

Asset

Management

Ping An Health

Insurance

Ping An

Annuity

Expanding

Nationwide

Morgan Stanley and

Goldman Sachs

become shareholders

First in China to

introduce international

accounting system

HSBC became

a shareholderPing An Group Founded

2

Ping An

Insurance

Company of

China

Founded

Securities

Business

Started

Shenzhen Ping

An Founded

License

Application



Milestones

08

Company Overview

Balanced Shareholding Structure

Name of shareholderNature of shareholder

Shareholding percentage(%)

Hong Kong Securities Clearing Company Nominees Limited

Overseas legal person

33.44

Shenzhen Investment Holdings Co., Ltd. State-owned 5.27

Hong Kong Securities Clearing Company Limited Others 4.48

New Orient Ventures Limited Overseas legal person

3.91

Business Fortune Holdings Limited Overseas legal person

3.27

China Securities Finance Corporation Limited Others 2.99

Central Huijin Asset Management Ltd. State-owned legal person

2.65

Shum Yip Group Limited State-owned legal person

1.41

DaCheng Fund- Agriculture Bank of China– Dacheng Zhongzheng Financial Asset

Management Plan

Others 1.10

Huaxia Fund - Agriculture Bank of ChinaHuaxia Zhongzheng Financial Asset Management Plan

Others 1.09

Shareholdings of top ten shareholders

09

A Share

59.26%

Total share

capital

18.28 billion

shares

H Share

40.74%

• Ping An of China is a mixed-ownership company that is

dual-listed in China’s mainland (A-shares) and Hong

Kong (H-shares). The shareholding structure of the

Group is relatively scattered. There is no controlling

shareholder, nor de facto controller.

• Shareholders holding more than 5% of equity

interest of the Company

Charoen Pokphand Group Co., Ltd.: 8.97% of total share

capital

Shenzhen Investment Holdings Co., Ltd.: 5.27% of total share

capital

10

Principles of Corporate Governance

3 to Meet 2 to Comply with

To meet international practice

To meet China's national conditions

To meet industry characteristics

To abide by listing rules of Shanghai and Hong Kong

To comply with laws and regulations of the of the CBRIC

and CSRC

Chinese Laws and Regulations

Company Law of the PRC, Insurance Law of the PRC, Securities Law of

the PRC, Law of the PRC on Commercial Banks

Corporate

Governance

“Abide by Law+1”

China's Financial Supervision Laws

Laws and Regulations by the People's

Bank of China, CBRIC, CSRC

Regulations for listed companies

Regulations of the Shanghai Stock Exchange,

Hong Kong Stock Exchange, and practices of

outstanding global companies

Status Quo of Ping An's Corporate Governance

•Annual General Meetings：Diverse Ownership Structure, 3

Principles Do not interfere with company management

Do not select management for the company

Do not connect transactions with the company

• CPC Committee: Adhere to the Party's leadership

and Implement the Party's Principles Established a two-tier Party Committee in both the Group and its

subsidiaries to adhere to the Party's leadership and implement the

Party's principles

• Supervisory Committee: Supervise the Board of Directors and

the Executive Committee to Protect the Rights and Interests of

Minority Shareholders, Employees and Other Stakeholders

•Board of Directors: Strategic Decision, Supervise the Executive

committee Consists of independent directors, executive directors, and shareholder

director, of which independent directors account for the majority

Independent directors are experienced professionals in law, accounting,

actuarial and investment fields

The director of the professional committee is served by an independent

director of the corresponding field, independent directors account for 2/3 of

Remuneration Committee and Audit Committee

• Executive Committee: Authorized by the Board of Directors,

responsible for daily management during the Board’s recess

11

Stockholders'

Meeting

Supervisory

Committee

CPC

Committee

Board of

Directors

Strategy and

Investment

Committee

Remuneration

Committee

Audit and Risk

Management

Committee

Nomination

Committee

Connected Party

Transaction

Control Committee

Consumer Rights

Protection

Committee

Group Executive

Committee

Budget

Management

Committee

Investment

Management

Committee

Risk

Management

Executive

Committee

Connected

Transaction

Management

Committee

IR and ESG

Committee

12

Not involve in actual business operations such as insurance, banking and asset Management

Focus on 3 key positionings

Clear Positioning and Division of Responsibilities

Positioning

• Strategy Steering: Formulate a unified strategic vision to guide all departments and

business units towards the same goal

• Operation Management: Formulate clear and transparent policies, standards and

systems to promote and monitor business operations, so as to ensure the Group’s daily

operations are in line with the strategic objectives

• Operation Support: Assist business units to achieve business objectives (Centralized

backup: Provide centralized and professional outsourcing services with scale effect

according to specific business needs)

Organizational structure: independent ops of subsidiaries and

matrix management of the Group

The matrix management structure

Subsidiaries

Insurance

Subsidiaries

Functional departments of

the Group

The Sharing Platform

Banking

Subsidiaries

Investment

Subsidiaries

Shared

Services

Fintech

Subsidiaries

Retail businessCorporate

business

Technology

business

13

Group Admin Center

Group Finance & Planning

Center

Group Internal Control

& Compliance Center

Group HR Center

Asset Operations & Control

Center of the Group

14



Company Overview

Milestones

15

Development strategy: world-leading technology-powered retail

financial services group

One

Positioning

Two

Focuses

Two Development

models

N Pillars

World-leading

Technology-powered

Retail Financial Services Group

Pan Financial Assets Pan Healthcare

Finance + Technology Finance + Ecosystem

Insurance BankingAsset

Management

Financial

Services

Ecosystem

Healthcare

Ecosystem

Auto

Services

Ecosystem

Real Estate

Services

Ecosystem

Smart City

Ecosystem

16

愿景

Corporate Culture

VisionWorld-leading Technology-powered Retail

Financial Services Group

Expertise creates value

Brand slogan: expertise makes life simple

MissionResponsible for our customers,

shareholders, employees and the society

Core

philosophy

Awareness of crisis, simplicity and

inclusiveness

Characteri

stics

Values

Maximizing value is the standard for testing

all work in operations and management of

Ping An

Leading expertise, credible services, value

creation, social responsibility

Corporate

motto

17

A Responsible InvestorA Trustworthy Insurance

CompanyAn Attractive Employer

An Upright and Transparent

Listed CompanyA Caring Corporate Citizen

Sustainability: Pioneering in China’s ESG and continue the

positive influence

Through the positioning of the five roles of Ping An, we continuously exert the influence on ESG

Objective: investing to create

economic, environmental and social

value

• Responsible investment:

nearly RMB1 trillion

• Loan balance of green credit :

RMB24.3 billion

• Loan balance of inclusive credit :

RMB898.9 billion

Objective: exploring sustainable

insurance, while enhancing customer

experience

• Sustainable insurance products:

1,053

• Insured amount:

RMB121 trillion

Objective: making employees an

important and long term driver of the

business

• Employee remunerations:

RMB59,144 million

• Employees covered by Long-term

service plan: 30 thousand+

• Score of employee satisfaction: 4.33

Objective: achieving long-term stable

operation with excellent corporate

governance

• Integrity promotion activities: 2,046

• Suppliers received ESG training: 100

Objective: environment friendly and promoting harmonious community

• Poverty alleviation: RMB15,745 million

• Village doctors: 11,175

• Village teachers: 11,826

• Carbon emissions: 797,251 tCO2e

• Carbon emissions reduction potential：

64,497 tCO2e

China's first asset owner to join

Principles for Responsible

Investment (PRI)

First DJSI selected insurance

company in Chinese mainland

Included in the HSCEI ESG

Index

Nationally leading position for

MSCI ESG rating

18

2015

2014

2013

2012

2011

2010

2008

79

55

86

61

53

32

2016 55

2017 2

2019

Honors and Awards

Rising on Fortune 500 list Widely honored

Ranked 29th

Ranked 39th

Ranked 41st

Ranked 96th

Ranked 128th

Ranked 181st

Ranked 242nd

Ranked 328th

Ranked 383rd

Ranked 462nd

No. 1 Insurance

Brand in China

Founded in 1988

• Ranked 7th in 2019“Forbes 2000”and

named No. 1 Diversified Insurance

Brand globally

• Ranked 40st in 2019“BrandZ

100”and ranked as Global

Insurance Brand No. 1

• Ranked No. 1 in Brand Finance “2019

The World’s 100 Most Valuable

Insurance Brands”

• “The Most Respected Company in China”for 18 consecutive years

• “The Most Responsible Company”for 11 consecutive years


19

Corporate Integrated Finance, Banking Business

and Asset Management Business

Three Business Lines

Retail Integrated Finance & Insurance Business

Retail Integrated Finance: one customer, multiple products, and

one-stop services

2019 retail as % of total

92.4%

516 million

Internet users

Yearly active users (YAU)

282 million

Contracts per customer

2.64

Online services

per internet user

1.91

Retail business has become a strong growth driver as its operating profit grew steadily

thanks to increasing retail customers, contracts per customer, and product profitability.

Group operating profit

RMB132,955 million

Retail operating profit

RMB122,802 million

Corporate and other operating profit

RMB10,153 million

Retail customers

200 million

Operating profit per customer

RMB612.54

20

Insurance business: the four major insurance member companies

2019 performance Premium

income

Operating profit

Ping An Life and

Ping An Health

RMB523.672 bn

+11.0%

RMB88.5 bn

+24.7%

Ping An P&C RMB270.930 bn

+9.5%

RMB20.952bn

+70.7%

• Ping An Life: China’s second largest life insurance company, with

42 branches and more than 3,300 outlets in China, a service network

all over the country and more than 1.1 million sales agents, providing

customers with a full spectrum of life insurance products and services.

• Ping An P&C: the second largest P&C company in China. The

“Ping An Auto Owner” app ranks No.1 among auto service apps in

China with more than 100 million registered users.

• Ping An Annuity: the first specialized annuity company in China.

Ping An Annuity had an AUM of RMB933.03 bn for 2019, providing

enterprise annuity and insurance services to a total of 2.78 million

corporate clients.

• Ping An Health: one of the first batch of licensed professional

health insurance companies in China. Its medical service network

covers more than 200 countries and regions around the world,

providing customers with full-process services of insurance protection

+ medical services + health management.

Life & Health NBV

2017 2018 2019

RMB75.945 bn

RMB72.294 bn

5.1%

7.3%

RMB67.357 bn

21




22



Development of corporate customers

23

Strategic

customers

• Tailor-made services and targeted

customer development

• Direct measures for Top 100 strategic

customers

• A “commercial banking + investment

banking + investment” model focused

on industries that contribute significantly

to people’s livelihoods and long-term

economic development

Small and

micro-

businesses

• Integrated the Group’s small and micro-business

services on the basis of bank accounts to provide

small and medium-sized enterprises and their

employees with comprehensive one-stop services

• Reshaped supply chain finance with blockchain

and the Internet of Things (IoT)

• Adopted online processes for product portfolios

and streamlined service processes to improve

customer experiences and business efficiency

Significant growth in corporate business scale

• In 2019, the corporate premiums achieved through cross-selling grew by 23.5% year on year to

RMB12,649 million, in which the written premium of the corporate channel rose by 115.5% year on

year.

• The new financing scale achieved through corporate business cross-selling increased by 142.1% year

on year to RMB296,742 million.

Tiered customer development under a“1+N” service model (one customer + N products) focusing

on strategic customers and small and micro-business customers

Increasing contributions from corporate business as platform of

high-quality customers and assets

2018 2019

RMB47.986 billion

RMB96.616 billion

101.3%

Note: The underlying assets invested by insurance funds sourced from corporate business refer to the assets sourced by the Group’s core financial companies, including Ping An Asset Management,

Ping An Securities, and Ping An Trust, for allocation of the Group’s insurance funds.

Outstanding balance of retail assets

referred by corporate business

2018 2019

RMB1.11 trillion

RMB1.23 trillion

10.2%

Underlying assets invested by insurance funds

sourced from corporate business

24

• Balance of retail AUM has

exceeded RMB2 trillion

• Nearly 100 million retail

customers

• Revenue from retail banking

accounted for 58.0% of total

revenue

• Net profit from retail banking

accounted for 69.1% of net

profit

Ping An Bank: build China’s most outstanding, world-leading

smart retail bank

25

2018 2019

RMB137.9 bn

RMB116.7 bn

18..2%

Revenue

2018 2019

RMB28.2 bnRMB24.8 bn

13.6%

Net profit

Ping An Bank is a national joint-stock commercial bank.

As of the end of 2019, Ping An Bank had 91 branches and 1,058 business outlets, providing customers

with multiple financial services

Edges in retail banking

Asset management

• Ping An Financial Leasing ranks No. 2 by net profit in the industry. Ping An

Financial Leasing aims to become an expert leader in serving small and

medium-sized enterprises and specialized markets in the financial leasing

industry in China. It has RMB254.6 billion in assets under management.

• Ping An Asset Management: one of the largest asset management

managers in China. Ping An Asset Management primarily engages in mandate

insurance funds management for Ping An Group as well as asset management

and investment advisory services for third-party institutional customers. Ping An

Asset Management has RMB3.27 trillion in assets under management. .

• Ping An Trust: one of the top trust companies by financial strength in

China. Ping An Trust focuses on four core businesses, i.e., special asset

investment, infrastructure investment, service trust and private equity investment

with RMB442.6 billion in assets under management.

• Ping An Securities is developing a smart securities service platform under the

Group’s integrated financial business strategy that covers six segments

including brokerage, investment banking, sales, trading, asset management and

investment research. Ping An Securities stably ranks first by brokerage

customer base (nearly 17 million) in the industry and first by the number of

ABS underwriting clients.

26

RMB2.865 bn

+7.6%

Ping An Asset

Management

RMB2.376 bn

+41.4%

Ping An

Securities

RMB4.476 bn

+36.0%

Ping An Financial

Leasing

Net

profit

for 2019

27






• Scientific research: 8 research institutes, 57 labs

• Talent pool: nearly 110,000 technology employees, 35,000 R&D

employees

• Independent R&D: 21,000+ patent applications, nearly 96% of which

are for inventions

Smart City

Research

Institute

Healthtech

Research

Institute

Artificial

Intelligence

Research Institute

Fintech

Research

Institute

Macro-economic

Research

Institute

Biomedical

Research

Institute

Blockchain

Research

Institute

Cloud Computing

Research

Institute World’s No.1

Fintech patent

applications in 2019

28

World’s No.2

Digital healthtech patent

applications in 2019

Leading in technological innovation through 8 research institutes

and 57 labs

Semantic understanding: SQuAD 2.0

Text excerpt

Q&A example

Which Florida city has a smallest population?

No answer due to ill-posed question，should

be the largest population.

Jacksonville is the largest city by population in the U.S. state of

Florida which the city government consolidated in 1968.

Won 47 global championships Medical Q&As: MEDIQA challenge of ACL

Q1：Polymicrogyria. My 16-month

son has this…Is it possible for this

post of his brain to grow to normal?

Q2：What is the outlook for

Polymicrogyria?

Example

True (Q2 contains Q1, Q2’s answer is applicable to Q1)

Ask questions

about disease

development

29

Technological R&D: won 47 global championships

AI:

• No.1 in Stanford Question Answering Dataset

(SQuAD 2.0)

• Won a championship in the English-Chinese

translation category in the international

translation contest of Workshop on Machine

Translation (WMT)

Fintech:

• OneConnect’s blockchain-enabled trade

finance network won the “Best Application

of Advanced Technology in a Product or

Service Award” of the 2019 BAI Global

Innovation Awards

Healthtech:

• Won three international championships(1)

and world firsts in six sub-tasks(2) at the 16th

IEEE International Symposium on Biomedical

Imaging (ISBI 2019)

• Won an international championship in a

sub-task of MEDIQA challenge sponsored by

the ACL

Published 20+ top medical papers

• AJKD: chronic kidney disease prediction

• The Lancet’s sub-publication:

flu prediction adaptive model for Chongqing

Notes: (1) Automatic Cancer Detection and Classification in Whole-slide Lung Histopathology (ACDC), Endoscopic Artefact Detection (EAD) and Pathologic Myopia

Challenge (PALM).

(2) Endoscopic artefact detection, segmentation, domain adaptation, and pathologic myopia optic disk segmentation, focus/segmentation, and macula localization.

(3) The F1 score is the result of fuzzy matching, calculated according to the coincidence between the answer given by the model (partially correct) and the standard

answer. The F1 score is as of July 31, 2019.

Answered 150,000+ complicated questions through AI

semantic understanding and won the first place with a

score of 90.9(3) (defeating the human performance of

89.5)

• Large text capacity: a total of 15,000 paragraphs to

understand

• Demanding understanding: 40% of questions have

no clear answer

• Examine the entailment relationship between 230

pairs of questions (True/False)

• Ranked first by surpassing over 70 contestants

Ranked first by testing 230 pairs of questions in the

Recognizing Question Entailment (RQE) contest of the

international Association of Computational Linguistics

(ACL)

Analysis results

Reduce costs Improve efficiency Manage risks

30

Technological empowerment of main financial businesses to

cut costs, boost efficiency, and enhance risk management

Smart

speech

robot

• Coverage: 83% of financial sales

scenarios, and 81% of customer

service scenarios

• Service volume: provided AI

services 850 million times in

2019

• Cost saving: an annual

reduction of 11% in CSR costs

Smart P&C

insurance

processing

• Process optimization: for auto

insurance, over 90% of quotes

are made automatically, and

many deals are struck upon the

1st quote

• Experience improvement: As

no manual data entry is involved

in the retail auto insurance

business, the turnaround time

from quotation to policy issue is

as short as 20 seconds

• Smart recruitment: over 6

million AI-based recruitment

interviews in 2019, 100% AI

coverage, reducing the in-person

interviews by over 680,000 hours

• Sales support: AskBob served

sales agents 340 million times,

and improved sales conversion

Sales

agent

support

AI retail

banking

• AI credit card approval: a total

of 14.30 million cards were

issued in 2019, nearly 90% of

which were automatically

approved by AI, and over 4

million of which were quickly

approved with one click.

• AI customer service: non-

manual services accounted for

86.1% (+6 pps)

Corporate

risk warning

platform

• Early warning and

prevention: corporate credit

risk can be dynamically

monitored with an accuracy

rate of 92%

• Risk management: issued

over 3,000 early warnings,

involving nearly RMB20

billion in exposure

AI-powered

post-lending

management

• Coverage: reminders to 100%

of customers who have not

defaulted

• Improved efficiency: RMB54

million in loans under

management per capita, up

32% from the beginning of

2019

Note: (1)the above stages are classified by the Company based on the operations.

(2) Total revenue of the technology business is the direct sum of the operating revenue data of each technology

company under the technology business segment, without considering the impact of the shareholding ratios.

Ping An

HealthKonnect

Autohome

Lufax Holding

OneConnect

Ping An

Good Doctor

Stage 1

Platform

establishment

Stage 2

Traffic and data

accumulation

Stage 3

Explosive

revenue growth

Stage 4

Profit contribution

AutohomeA leading online platform for automobile consumers

in China. Autohome’s revenue hit RMB8.421 bn and

the “Autohome” App had an average of 36.83 million

independent user visits per day.

Ping An HealthKonnect

China’s leading tech-powered managed care

service platform that covers more than 200 cities

across the country and serves over 800 million

insurance participants.

Ping An Good Doctor

The largest online health care platform in China; listed

on the HKEX’s main board. Revenue hit RMB5,065

million with registered users of 315 million and an

average of 729,000 online consultations per day.

A world-leading fintech service cloud platform serving

all major banks, 99% of the city commercial banks

and 52% of the insurers in China.

OneConnect

Lufax HoldingA world-leading online wealth management platform

and retail lending tech platform with 44.02 mn

registered users and loans of RMB462.2 bn under

management.

31

Growth stages of the technology business

32

Smart city: serving 115 cities, 500,000 companies and 50

million citizens

V V

Smart educationSmart healthcareSmart

transportation

Supporting

government

services

Improving

people’s

livelihoods

Promoting

business

development

Covered 115 cities to improve

government administration

Served 500,000 companies to

optimize business environmentServed 50 million citizens to

enhance citizen service experience

Smart

government

Smart legal

services

Smart

environmental

management

Smart Fiscal

Efficiency

Environment

Finance

• Served 4,000+ administrative units,

enterprises and public service units

• Supported management of assets worth

RMB6 trillion+

• Covered 30+ commissions, offices and

administrations in 20+ cities

• Analyzed 400+ themes

• Supported environmental management

of 50,000+ polluting enterprises in

Shenzhen

• Covered 50 pollutants in 5 major

industries

Smart market

regulation

Smart

development

and reform

Smart services

Smart trade

Smart finance

Smart credit

Servic

e

Planning

Regulation

• Forecasts cover 150+ cities

• Analyzed 34 topics and 4,500+

economic indicators

• Provided services for nearly 480,000

companies

• Smart customs services covered over

400,000 customs declarations, involving

goods worth RMB150 million, reducing the

inspection time to 5 days, and the declaration

time to 5 minutes

• Covered 8,000+ risks in 600+ scenarios

• Forecast and early warning accuracy of

90%+

Culture

Convenience

Health

• Provided vocational education

services for 36 million users, and

online education sessions for

51 million trainees

• Provided 77,000 high-quality courses

• Automatically handled 100,000+ traffic

violations every day

• Covered 14,000 medical institutions

• AskBob was called about 11 million

times, benefiting 260,000 doctors

Thanks

expertise makes life simple95511 customer service: 2 million service cases are handled per day,...

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