Strong earnings growth Record net profit and total assets

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

2006 Interim Results Announcement

Strong earnings growth

Record net profit and total assets

Hong Kong, Aug 16, 2006 -- Ping An Insurance (Group) Company of China, Ltd. ( Ping An or the Group , HKEx: 2318) announced its interim results today. In the first six months of the year, the PRC economy sustained steady growth while reform in the financial sector continued to progress, providing a favorable environment for the development of the insurance industry as a whole. Ping An continued to deliver robust growth as it successfully restructured its business model and both net profit and total assets reached historical records.

As at June 30, 2006, net profit reached RMB4,162 million, a significant increase of 85.0% over the same period in 2005. The total assets and total equity of the Group were RMB358,718 million and RMB38,104 million, an increase of 12.2% and 13.7% respectively from December 31, 2005. Earnings per share was RMB 0.66.

In the first half of 2006, total revenue was RMB43,739 million. Gross written premiums, policy fees and premium deposits increased 26.5% to RMB 45,571 million over the same period in 2005. Total investment income improved significantly to RMB9,654 million over the same period in 2005.

Net profit increased as the core insurance businesses, life and property and casualty, continued to grow at a strong pace. Furthermore, the Group achieved respectable investment returns. Its core life insurance and property and casualty businesses accounted for approximately 84.6% and 7.6% respectively, of its net profit.

Mr. Ma Mingzhe, Chairman and CEO of the Group, said, The Mainland economy sustained steady growth while reform in the financial sector progressed successfully. All these provided a favorable environment for the development of the whole industry. This, together with the full support of our shareholders and staff, enabled the Group to maintain its growth momentum and fulfill our business targets throughout the period.

Life Insurance: Further refinements and steady growth

The following table highlights key financial and operating data in Ping An s life insurance business:

For the six months ended June 30, 2006, net profit from the life insurance was RMB3,523 million, up 88.6% over the same period in 2005. Ping An s life insurance business accounted for approximately 16.6% of the gross written premiums, policy fees and premium deposits collected by life insurance companies in the PRC.

Gross written premiums, policy fees and premium deposits for individual life increased 25.9% to RMB29,510 million in the first half of 2006 compared to the same period in 2005. This increase was primarily due to the 31.8% increase in renewal premiums, policy fees and premium deposits to RMB22,743 million from RMB17,262 million in the same period in 2005.

In addition, first year premiums, policy fees and premium deposits for the individual life business increased 9.5% to RMB6,767 million in the six months ended June 30, 2006 from RMB6,179 million in the same period last year. These increases were mainly due to the continued improvement in the quality and productivity of Ping An s agency force.

The profit increase in the bancassurance business was primarily driven by the growth in sales of the universal life products through the Group s bancassurance channel. Also, Ping An continued its efforts to manage the growth of its group insurance business line to improve profit margin.

During this period, relative to the same period in 2005,

Gross written premiums, policy fees and premium deposits for the life insurance business increased 25.0% to RMB37,182 million. Policyholders reserves increased accordingly.

Gross written premiums, policy fees and premium deposits for the group insurance business increased 0.2% to RMB4,123 million. Ping An continued to focus on selling employer welfare benefit plans. As a result, gross written premiums and policy fees for the short-term accident and health insurance business increased 13.5% to RMB1,239 million.

Net investment income increased 31.2% to RMB5,211 million from RMB3,971 million. Net investment yield increased to 4.3% from 4.2%. These increases were mainly due to the increase in investment assets to RMB235,534 million.

Claims and policyholders benefits increased 6.4% to RMB8,520 million from RMB8,011 million.

Commission expenses, paid primarily to sales agents, increased 32.7% to RMB3,272 million from RMB2,465 million due to an increase in first year premiums, policy fees and premium deposits from individual life products. Commission expenses as a percentage of gross written premiums, policy fees and premium deposits increased to 8.8% from 8.3%.

General, administrative and other expenses increased 20.1% to RMB 2,296 million from RMB1,911 million. General, administrative and other expenses as a percentage of gross written premiums, policy fees and premium deposits decreased to 6.2% from 6.4%, due to continuous cost control initiatives.

The 13-month policy persistency ratio remained at a healthy level of 88.6% as a result of improvements in customer service.

Property and Casualty Insurance:

Steady business growth and continuity in service quality

The following table highlights key financial and operating data for Ping An s property and casualty insurance business:

In the first half of 2006, Ping An s property and casualty insurance business realized a net profit of RMB317 million, an increase of 123.2% over the same period in 2005. Gross written premiums increased to RMB8,389 million, an increase of 33.4%. The Group s national market share of gross written premiums moved up to 10.7%.

During this period, compared to the same period in 2005,

Gross written premiums increased 33.4% to RMB8,389 million from RMB6,290 million. The increase was due to significant growth in all three principal lines, including automobile insurance business, non-automobile insurance business and accident and health insurance business.

Net investment income increased 20.9% to RMB220 million from RMB 182 million. Net investment yield increased to 4.3% from 4.2%.

Total claims increased 22.8% to RMB3,208 million.

Commission expenses increased 53.8% to RMB675 million from RMB 439 million. As a percentage of gross written premiums, commission expenses increased to 8.0% from 7.0% due to the increase in gross written premiums and the higher market commission rates resulting from an increase in market participants and intense competition in the property and casualty insurance industry.

General, administrative and other expenses increased 21.3% to RMB 1,333 million from RMB1,099 million. This increase was primarily due to the increase in gross written premiums. However, general, administrative and other expenses as a percentage of gross written premiums decreased to 15.9% in the first half of 2006. This decrease was mainly due to continuous cost control efforts.

The combined ratio improved to 94.8% from 95.3% due to the Company s sustained efforts to improve the quality of underwriting.

Strong investment performance

In the first six months of 2006, Ping An achieved the following results from investments relative to the same period in 2005,

Net investment income increased 29.1% to RMB5,783 million from RMB4,481 million primarily due to an increase in investment assets to RMB269,596 million from RMB219,666 million. Net investment yield increased to 4.2%. This was mainly driven by the higher dividend income received from equity investment funds.

Total investment income increased 114.5% to RMB9,654 million from RMB4,500 million. Total investment yield increased to 5.8% from 4.1%. This increase was primarily due to strong performance in the PRC equity markets. As a result, the net realized and unrealized gains significantly increased to RMB 3,871 million.

The Group continued to improve its portfolio asset allocation, in response to changes in the capital markets. As a result, equity investment as a percentage of total investment assets increased to 10.1% as at June 30, 2006.

Strong momentum in other businesses

Due to the strong stock market performance, Ping An Securities achieved a net profit of RMB174 million through the increase in revenue from brokerage fees and investment banking services. Ping An Securities also received approval from the China Securities Regulatory Commission to launch innovative products and services. Ping An Trust issued new trust schemes and completed its investments in various projects. Both financing and investment capacity were substantially enhanced compared with the same period in 2005.

In June 2006, Ping An Bank obtained its license from the China Banking Regulatory Commission to provide Renminbi Services to corporate customers. It increased its customer base, deposits, and outstanding loans substantially over the same period in 2005. Ping An will further enhance its comprehensive platform for financial services so as to meet customer demand.

Nation-wide back-office operating centre and Ping An School of Financial Services became operational

Ping An s nation-wide back-office operating centre in Shanghai has commenced operation and currently has a staff of approximately 1,500. The centralization of the life insurance underwriting and claims functions was completed and is operating smoothly. Ping An School of Financial Services began its operation in the first half of 2006 and conducted dozens of seminars for the China Insurance Regulatory Commission and the Group.

More than 100 training courses were held during the first six months of the year. The school received wide recognition for both its faculty expertise and modern facilities.

Looking Ahead

Chairman Ma Mingzhe said: In June 2006, the State Council issued Several Opinions on the Reform and Development of the Insurance Industry which entailed a number of measures to support the development of the insurance industry. In particular, it emphasizes the support of the State Council for the efforts of qualified insurance companies in conducting restructurings, mergers and acquisitions.

The measures also promote the steady trial of integrated financial services for insurance companies. We believe that the gradual implementation of these policies will create a more liberal and favorable operating environment for the Mainland insurance industry overall and we will surely benefit from this

In the second half of 2006, we will continue to focus on business quality, profits, legal compliance and attaining new heights. In respect of our core insurance business, we will continue to strengthen our competitive edge in major cities and to enhance our effort in exploring new potential markets, thus, building a stronger foothold for future growth. In respect of investment, we will execute our investment in infrastructure projects and actively set up strategies and channels for overseas investment

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

Ping An is a diversified financial holding group founded in 1988 with its headquarters in Shenzhen. Since its establishment, Ping An has developed into one of the nation s leading insurance groups with the ability to provide multiple financial services and products with a focus on life, property and casualty insurance products under a single brand and through its multi-channel distribution network. Ping An is listed on the main board of the Hong Kong Stock Exchange under the name Ping An of China and stock code 2318 .

Ping An has developed an extensive customer base in the PRC with over 30.58 million life insurance and 7.69 million property and casualty insurance customers as at December 31, 2005. It has also developed one of the largest distribution networks in the PRC, approximately 200,000 sales agents for its individual life insurance products and over 9,000 employees engaged in sales and marketing activities of the group s property and casualty insurance products as of December 31, 2005.

Over the last 18 years, Ping An has become one of the PRC s best-known brands domestically and internationally. The Group has developed an extensive customer base in the PRC and is one of the few Chinese financial institutions that have a financial service conglomerate platform.

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