Ping An Announces Interim Results for First Half of 2007

Ping An Announces Interim Results for First Half of 2007

Net profit increased by 139.5%Synergy across three business pillars gradually realized

Highlights of results for the six months ended 30 June 2007 were prepared in accordance with International Financial Reporting Standards(IFRS) The comparisons are to data of the same period of 2006 unless otherwise indicated

(Hong Kong, 17 August 2007) Ping An Insurance (Group) Company of China, Ltd. ( Ping An or the Group ) (Stock code: HKEx 2318; SSE 601318) announced its audited interim results for the first half of 2007. For the six months ended 30 June 2007 ( the Period ), under favorable macro environment, the Group achieved outstanding results in the first half of the year by leveraging on its solid business foundation and competitive advantages and improving profitability across various businesses. The Group saw its net profit hit a historic high. In particular, its core life insurance and property and casualty insurance businesses achieved steady growth, integration of banking business was successful, and the investment and asset management business achieved breakthroughs. The Group s integrated financial services platform has been further refined. The synergy across the Group s three business pillars, namely insurance, banking and asset management, has been gradually realized.

The Group achieved outstanding performance in its results for the first half of 2007. According to the International Financial Reporting Standards (IFRS), the Group s net profit for the six months ended 30 June 2007 reached RMB9,969 million, a 139.5% increase over the same period in 2006. Total assetswere RMB617,772 million as at30 June2007, a 24.9% increase as compared to the end of 2006. Total equity increased 104.3% to RMB97,573 million as compared to the end of 2006. Earnings per share were RMB1.39.

According to thePRC Accounting Standards, the Group s net profit for the six months ended 30 June 2007reached RMB8,326 million, representing a 107.8%increase over the same period of 2006. Total assets were RMB583,143 million, a 25.9% increase as compared to the end of 2006. Total shareholders equity rose 103.6% to RMB94,911 million from the end of 2006. Premium income reached RMB53,885 million, representing a 17.1% growth as compared to the same period in 2006. Earnings per share were RMB1.16.

The Board of Directors declared an interim dividend of RMB0.20 per share for the six months ended 30 June 2007.

Outstanding performance of the three business pillars

Commenting on the satisfactory growth in Ping An s interim results, Chairman and CEO Ma Mingzhe said, For the first half of 2007, the PRC economy sustained fast and steady development, and saw continued strong growth momentum in the three major demands, namely consumption, investment and export. As the reform and opening-up of the financial sector progressed, the financial and insurance industry continued its fast development. Under favorable macro environment, the Group achieved outstanding results in the first half of the year by leveraging on its solid business foundation and competitive advantages and improving profitability across various businesses. In general, the Group has delivered outstanding operating results to the shareholders in the first half of 2007.

Our core life insurance and property and casualty insurance businesses achieved steady growth. The product mix of life insurance business has been further optimized. Thanks to the strong economy, individual life insurance business recorded robust growth unseen in the past few years. Meanwhile, the Group has been proactively seeking new business growth opportunities and has implemented the Two Tier Market Development strategy that focused on the balanced development of both urban and rural areas. Ping An Life initiated the pilot programs in the rural areas of Jiangsu and Zhejiang provinces. Ping An Annuity obtained business licences for all 35 branches to start operation across the nation.

The integration of the banking business progressed smoothly. As approved by the China Banking Regulatory Commission ( CBRC ), Shenzhen Commercial Bank merged with and took in Ping An Bank and was renamed as Shenzhen Ping An Bank Co., Ltd. ( Shenzhen Ping An Bank ). Shenzhen Ping An Bank has branches and sub-branches in Shenzhen, Shanghai and Fuzhou, providing corporate and individual customers with comprehensive financial services and products. The merger of the two banks further integrated the banking resources within the Group and helped strengthen the banking business by creating a single banking brand name and laying a strong banking business platform for nationwide expansion.

As for the investment and asset management business, benefiting from the rapid development of the domestic equity market and the surge in trading volume, the Group recorded strong growth in its securities brokerage, investment banking and derivative products businesses; total investment return on its insurance funds increased significantly; non-capital market investment of our trust business generated encouraging results and third-party asset management business achieved breakthrough development. Ping An Asset Management (Hong Kong) obtained its asset management licence and a global investment platform has been gradually established. In the period under review, four analysts from Ping An Securities were ranked among the Top Analysts of 2006 for Earnings Estimates and Stockpickers in Asia by StarMine, a world renowned professional evaluation agency of securities analysts. Ping An Securities as a whole was ranked No. 8 among a large number of prestigious research institutions.

In the first half of 2007, the Group s integrated financial services platform has been further refined. Along with the smooth integration of various back-office functions, the performance of cross-selling various financial products within the Group exceeded targets. The synergy across our three business pillars, namely insurance, banking and asset management, has been gradually realized, and the Group is steadily progressing toward its One Customer, Multiple Products strategic goal.

Operating Highlights

Financial Data under IFRS:

( in RMB million )

Under IFRS, Ping An s total income for the first half of 2007 was RMB69,021 million, a 56.9% increase over the same period of 2006. As compared to the same period in 2006, gross written premiums and policy fees increased 15.1% to RMB43,138 million, while total investment income increased 167.6% to RMB25,668 million. Total investment yield increased to 9.9% in the period from 5.8% in the same period of 2006, and net investment yield rose to 4.9% from 4.2%. Benefiting from the better performance across our portfolio of businesses and the strong total investment returns, the Group s consolidated net profit increased 139.5% to RMB9,969 million from RMB4,162 million in the same period in 2006.

Financial Data under PRC Accounting Standards:

(in RMB million)