Ping An Insurance Earnings: New Business Growth Tops Forecast; Key Profit Measure Continues Recovery

We have raised our fair value estimate for Ping An Insurance to CNY 58 from CNY 55 per A share and to HKD 63 from HKD 59 per H share after strong third-quarter results. Year-to-date net profit was up 36%, mainly due to a 69% increase in investment income from the September stock market rally. Both life as well as property and casualty, or P&C, insurance segments show recovery, with a quarter-on-quarter increase in life insurance agents and reduced underwriting losses in credit guarantee insurance. We now expect full-year revenue growth of 7% and net profit growth of 44%, up from previous estimates of 6% and 34%, respectively.