PING AN<02318> - Results Announcement
Ping An Insurance (Group) Company of China, Limited announced on 15/08/2006:
(stock code: 02318 )
Year end date: 31/12/2006
Currency: RMB
Auditors' Report: N/A
Interim report reviewed by: Both Audit Committee and Auditors
(Unaudited )
(Unaudited ) Last
Current Corresponding
Period Period
from 01/01/2006 from 01/01/2005
to 30/06/2006 to 30/06/2005
Note ('Million ) ('Million )
Turnover 2 : 43,739 32,603
Profit/(Loss) from Operations : 4,718 2,673
Finance cost : N/A N/A
Share of Profit/(Loss) of
Associates : N/A N/A
Share of Profit/(Loss) of
Jointly Controlled Entities : N/A N/A
Profit/(Loss) after Tax & MI 3&4 : 4,099 2,235
% Change over Last Period : +83.4 %
EPS/(LPS)-Basic (in dollars) 6 : 0.66 0.36
-Diluted (in dollars) 6 : N/A N/A
Extraordinary (ETD) Gain/(Loss) : N/A N/A
Profit/(Loss) after ETD Items : 4,099 2,235
Interim Dividend 5 : RMB0.12 Nil
per Share
(Specify if with other : N/A N/A
options)
B/C Dates for
Interim Dividend : 30/08/2006 to 04/09/2006 bdi.
Payable Date : 08/09/2006
B/C Dates for (-)
General Meeting : N/A
Other Distribution for : N/A
Current Period
B/C Dates for Other
Distribution : N/A
Remarks:
1. Changes in significant accounting policies
The Group has revised certain significant accounting policies following
adoption of the following revised International Financial Reporting
Standards ("IFRSs") which management considers to be most relevant to its
current operations:
(1) International Accounting Standard ("IAS") 39 Financial Instruments:
Recognition and Measurement
Fair Value Option
Effective January 1, 2006, the Group has adopted IAS 39 amendment on fair
value option. As a result, the Group has an option to designate a
financial asset or financial liability at fair value through profit or
loss when one of the following conditions is met:
- it eliminates or significantly reduces a measurement or
recognition inconsistency that would otherwise arise from measuring assets
or liabilities or recognizing the gains and losses on them on different
basis; or
- a group of financial assets, financial liabilities or both is
managed and its performance is evaluated on a fair value basis, in
accordance with a documented risk management or investment strategy, and
information about such group is provided internally on that basis to an
entity's key management personnel.
During the six months ended June 30, 2006 (the "Period"), the Group did
not opt to designate significant financial asset or liability at fair
value through profit or loss.
(2) IAS 39 Financial Instruments: Recognition and Measurement and IFRS 4
Insurance Contracts
Financial Guarantee Contracts
Effective January 1, 2006, the Group has adopted IAS 39 and IFRS 4
amendments on financial guarantee contracts. Under the amended IAS 39,
financial guarantee contracts are recognized initially at fair value and
generally remeasured at the higher of the amount determined in accordance
with IAS 37 "Provisions, Contingent Liabilities and Contingent Assets" and
the amount initially recognized less, when appropriate, cumulative
amortization recognized in accordance with IAS 18 "Revenue".
Other than any financial guarantee contracts issued by the Group's banking
operations which are accounted for under IAS 39, the Group has previously
regarded certain contracts it issued with financial guarantee element as
insurance contracts and has used accounting applicable to insurance
contracts, and accordingly has elected to apply IFRS 4 to account for such
contracts.
The above revised accounting policies have no significant impact on these
financial statements, and the Group considers that the adoption of other
new or revised IFRSs and related pronouncements effective in 2006 does not
have significant impact on the Group's financial statements for 2006.
Currently, the Group is assessing the impact of adopting new or revised
IFRSs effective since 2007.
2. Turnover
For the six months ended June 30, Notes 2006 2005
(in RMB million) (Unaudited) (Unaudited)
Gross written premiums and policy fees 2(a) 37,486 30,549
Less: Premiums ceded to reinsurers (2,466) (2,311)
___________ _________
Net written premiums and policy fees 35,020 28,238
Increase in unearned premium reserves, net (2,264) (1,292)
____________ _________
Net earned premiums 32,756 26,946
Reinsurance commission income 922 772
Net investment income 2(b) 5,783 4,481
Realized gains/(losses) 2(c) 2,090 (190)
Unrealized gains 2(d) 1,781 209
Foreign currency losses, net (130) -
Other income 537 385
____________ _________
Total revenue 43,739 32,603
========= ========
2(a) Gross written premiums and policy fees
For the six months ended June 30, 2006 2005
(in RMB million) (Unaudited) (Unaudited)
Life
Individual life 24,686 19,621
Bancassurance 479 721
Group insurance 3,932 3,917
______ _______
Total 29,097 24,259
______ _______
Property and casualty
Automobile insurance 5,482 3,720
Non-automobile insurance 2,490 2,321
Accident and health insurance 417 249
_______ ______
Total 8,389 6,290
_______ ______
Gross written premiums and policy fees 37,486 30,549
====== ======
2(b) Net investment income
For the six months ended June 30, 2006 2005
(in RMB million) (Unaudited) (Unaudited)
Interest income from fixed maturity investments
Bonds 3,151 2,506
Term deposits 1,570 1,810
Other loans and receivables 66 22
Dividend income from equity investments
Equity investment funds 763 99
Equity securities 205 33
Operating lease income from investment
properties 58 49
Interest expenses on securities sold under
agreements to repurchase (30) (38)
____________ _________
Total 5,783 4,481
===== =====
Yield of net investment income (% per annum) 4.2 4.1
==== ====
Lease income from investment properties and foreign currency gains/losses
on investment assets denominated in foreign currencies are excluded in the
calculation of the above yield.
2(c) Realized gains/(losses)
For the six months ended June 30, 2006 2005
(in RMB million) (Unaudited) (Unaudited)
Fixed maturity investments 163 207
Equity investments 1,788 (397)
Derivative financial instruments 139 -
_________ ________
Total 2,090 (190)
========= ========
2(d) Unrealized gains
For the six months ended June 30, 2006 2005
(in RMB million) (Unaudited) (Unaudited)
Fixed maturity investments 31 35
Equity investments 1,680 185
Derivative financial assets 70 (11)
_________ ________
Total 1,781 209
====== =====
2(e) Total investment income
For the six months ended June 30, 2006 2005
(in RMB million) (Unaudited) (Unaudited)
Net investment income 5,783 4,481
Realized gains/(losses) 2,090 (190)
Unrealized gains 1,781 209
______ ______
Total 9,654 4,500
===== =====
Estimated yield of total investment
income (% per annum) 5.8 4.1
==== ====
Lease income from investment properties and foreign currency gains/losses
on investment assets denominated in foreign currencies are excluded in the
calculation of the above yield.
3. Operating profit
Operating profit is arrived at after charging the following
items:
For the six months ended June 30, 2006 2005
(in RMB million) (Unaudited) (Unaudited)
Employee costs 2,053 1,515
Depreciation of investment properties 32 26
Depreciation of property, plant and equipment 196 162
Amortization of land use rights 9 12
Loss on disposal of property, plant and
equipment and investment properties 6 -
Impairment losses for investment properties,
property, plant and equipment, construction-in-
progress and land use rights 34 39
Provision for doubtful debts, net 11 154
Operating lease payments in respect of
land and buildings 254 250
=== ===
4. Income taxes
According to the "Provisional Regulations of the PRC on Enterprise Income
Tax", the taxable income of the Group represents its income for financial
reporting purposes, net of deductible items for income tax purposes. The
enterprise income tax rates applicable to the Group, the subsidiaries and
their branches during the Period are as follows:
Tax Subsidiaries and branches Tax rate
_____ ___________________________ __________
Enterprise income
tax in the PRC - Located in the Special Economic Zones 15%
- Located outside the Special Economic
Zones 33%
Hong Kong
profits tax - Subsidiaries in the Hong Kong Special
Administrative Region 17.5%
For the six months ended June 30, 2006 2005
(in RMB million) (Unaudited) (Unaudited)
Current income tax 319 374
Deferred income tax 237 49
___ ___
Income taxes 556 423
=== ===
5. Dividends
(1) Special interim dividend approved and paid
For the six months ended June 30, 2006 2005
(in RMB million) (Unaudited) (Unaudited)
Special interim dividend of RMB0.20
per ordinary share
(Six months ended June 30, 2005: Nil) 1,239 -
===== ======
On March 29, 2006, the board of directors proposed a 2006 special interim
dividend distribution of RMB0.20 per share totaling RMB1,239 million,
which was paid by the Company out of dividends amounting to RMB4,364
million received by the Company from one of its subsidiaries in early May
2006. This proposal was approved by the Company's shareholders on May 25,
2006.
(2) Interim dividend declared
For the six months ended June 30, 2006 2005
(in RMB million) (Unaudited) (Unaudited)
Interim dividend of RMB0.12 per
ordinary share
(Six months ended June 30, 2005: Nil) 743 -
=== =====
On August 15, 2006, the board of directors declared an interim dividend
distribution of RMB0.12 per share totaling RMB743 million to be paid.
(3) Final dividend approved and paid for the previous financial year
For the six months ended June 30, 2006 2005
(in RMB million) (Unaudited) (Unaudited)
Final dividend: Nil
(Six months ended June 30, 2005:
RMB0.14 per ordinary share) - 867
===== =====
6. Earnings per share
The basic earnings per share for the Period is computed by dividing the
net profit attributable to equity holders of the parent for the Period by
the weighted average number of 6,195,053,334 shares in issue during the
Period.
The Company had no dilutive potential shares, hence no diluted earnings
per share amount is presented.
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