About Company
Ping An Insurance (Group) Company of China, Ltd, better known as Ping An Insurance Group, is a Chinese financial conglomerate. The company’s transformation from an insurance company selling property and marine insurance to a company that stands among the tech giants today is a rare and extraordinary achievement. The company has operations across insurance, banking, financial services, asset management, healthcare, and technology services.
During the late 1980s, when China was gradually opening up its economy to the outside world and inviting investments, Peter Ma Minghze quickly seized the opportunity. On May 27, 1988, he founded the Ping An Insurance Company in Shenzhen, southern Guangdong Province, and it was the first- joint-stock company in China.
China’s economic reforms led to the rise of private industry and paved the way for foreign companies to enter China. Despite adopting the free market, the government did not provide any protection for workers. The lack of personal injury insurance allowed Peter Ma to open a new kind of insurance to serve the changing needs of the reformed and constantly opening economy.
Ma’s vision became a reality with his unwavering stamina and persistence, finally leading to the establishment of Ping An Insurance. The company had a founding capital of RMB42 million, with Shekou Social Insurance holding 51% shares and Shenzen Trust holding 49% shares.
Although insurance is Ping An’s primary business, it now provides a wide range of financial services and products.
Which industry does Ping An Insurance Belong to?
Ping An Insurance is no more an insurance company but a financial conglomerate. Insurance is still the company’s primary business that expanded its operations in the banking and investment sector. Its activities include investment in insurance and financial enterprises and deployment. The operations cover the segments of Property and Casualty insurance, Life insurance, securities, Banking, and Corporate.
What are the Company’s Products?
The company offers various products as detailed below:
Life insurance segment – Products include whole-life, term, universal, investment-linked policies, annuity, and healthcare insurance.
Property and casualty insurance segment – Products include automobile and non-automobile insurance, accident insurance, and health insurance.
Banking segment – Loan and intermediary business undertaking constitute the leading products in the segment, along with credit card services and wealth management.
The securities segment includes trading, brokerage, investment banking, and asset management services.
Corporate segment – The Corporate segment provides support and management services to the Group’s businesses. The functions covered by the services include risk, strategy, finance, treasury, human resources functions, etc.
Why is the name Ping An?
Ping An Insurance Group was the first private insurance company in China with a shareholding structure. Until then, the insurance business in China was the monopoly of The Peoples Insurance Company (Group) of China Ltd (PICC). The brainchild of Peter Ma, who founded the company in 1988, aimed to widen the insurance options for foreign investors and offer protection for personal injury.
The company’s philosophy was to give the clients and communities hope that they could realize their dreams with proper support. The company believes that appropriate support is essential for everyone to thrive. The terms Ping signifies Peace, and An relates to Safety, and the name sounds reassuring as it underlines the company’s philosophy.
Why is Ping An Insurance Considered a National Business in China?
The most significant recognition that the company received was from the government of China. Despite not being a state-owned enterprise, the company was given the Chinese name Ping An of China by the State Council of the People’s Republic of China. The country recognized Ping An Insurance as a national business insurance company.
When did Ping An Enter the Life Insurance Business?
The company that started by offering marine hull and property insurance had ambitious plans to become a world leader in integrated finance, retail financial services, and healthcare, forming the core business.
The life insurance business in China was always unwelcome because of the social taboo associated with life and death in Chinese culture. Luckily, Peter Ma could overcome the challenge because of his perseverance, hard work, and high ambition. Ma’s relentless efforts to partner with some life insurance companies began with his interactions with AIA. The American life insurance company has had its presence in China since 1992 and had a permit to operate in Shanghai. After knocking at the doors of several insurance companies in Japan and Hong Kong in 1993, Peter Ma allied with Guohua Life Insurance of Taiwan. It paved the way for the birth of Ma’s life insurance company, which issued the first life insurance policy in May 1994.
What is the Sector-wise Global Ranking of Ping An Insurance?
Ping An Insurance (Group) Company of China, Ltd is a global leader in the insurance business.
- It holds the first rank among global insurers in terms of market capitalization.
- It is also the first among global insurance companies in asset size.
- The company is among the three integrated financial groups worldwide.
What is the Nature of Company Ownership and Listing in the Stock Market?
Ping An Insurance is a mixed ownership company listed on the Shanghai Stock Exchange (A-shares) and Hong Kong Stock Exchange (H-shares). The Group has a scattered shareholding structure, and no shareholder is in a position to control the company. The total share capital of 18.28 billion shares consists of 59.26% A shares and 40.74% H shares.
Among the shareholders having more than 5% of equity interest in the company are Shenzhen Investment Holding Company Ltd, with a share capital of 5.27% and Charoen Pokphand Group Company owns 6.80% of the total share capital. Most shares (37.1%) belong to Hong Kong Securities Clearing Company Nominees Limited, with shares distributed among overseas legal persons.
What are the Different Growth Stages of Pin An?
The company’s growth over four decades started with the building phase, followed by the consolidation of the business for further expansion.
The first decade – During the first decade, the company focused on sales-driven growth by building institutional platforms and exploring the path of modern insurance.
The second decade – Having made a place in the insurance business, the company focused more on service during the second decade, which revolved around insurance development and exploration of integrated financial modules.
The third decade – On entering the third decade, the company made a paradigm shift as it wanted to establish its credentials as a technology-driven company. During this period, the company’s goal was to strengthen integrated financial practice and explore the economic horizons with full technological support.
The fourth decade – After 30 years of journey, the company aimed to deepen the ties between finance and technology. It expanded its operations into financial healthcare. The fourth decade saw Ping An turn into a demand-driven company.
Which are the Ping An Group’s Subsidiaries?
Ping An Group’s subsidiaries are Ping An Life, Ping An Health Insurance, Ping An P&C, Ping AN Annuity, Ping An Trust, Ping An Bank, Ping An Mutual Fund, Ping An Securities, etc. The Group covers all aspects of financial services. Ping An Group is among the few financial companies in China that provide a wide range of financial services, from banking to insurance and investment.
How did Ping An Become a Tech Giant?
After selling insurance for a few decades and achieving a leadership position globally, Ping An is a significant technology disruptor. The company figures prominently among the tech giants. It ventured into the realms of technology by going beyond the boundaries of finance and insurance. Ping An has its credit for launching a few spin-offs that could achieve unicorn status. Ping An and its subsidiaries represent a new type of technological ecosystem.
What is Ping An Group’s Overall Global Ranking?
Besides being the most valuable insurance group in the world, Pin An earns more glory from attaining the 7th rank in the Forbes Global 2000. It’s a system for ranking the top 2000 global public companies.
Ping An Draws Huge Foreign Investment.
Ping An Insurance Company is the first company in China to have foreign shareholders. In 1994, Goldman Sachs invested $35 million in the Group, the first principal investment in China. Along with Morgan Stanley, which also funded the same amount, Goldman Sachs purchased a combined stake of 10% in Ping An Insurance Company. Not only was it the most significant foreign investment in any financial institution in China, but the deal was also the first private equity investment in a Chinese company.
The opening up of the Chinese economy, backed by some liberal steps taken by the government, allowed Ping An to offer investment-linked policies and appoint an international auditor. It was a historical moment that laid the groundwork for more foreign investments.
