(Bloomberg) — Ping An Insurance (Group) Co., China’s largest insurer by market value, posted a 31% drop in third-quarter profit as stock-market declines weighed on investment returns and slower economic growth sapped premium income.
Net income dropped to 23.6 billion yuan ($3.7 billion) in the three months ended Sept. 30, from 34.4 billion yuan a year earlier, the Shenzhen-based company said Wednesday. That compares with a 16% decline in first-half profit.
Operating profit, which Ping An says better reflects performance because it strips out short-term volatility, rose 9.2% in the first nine months of the year, in line with a 10% first-half gain.
Ping An’s shares trading in China have slumped 40% this year, weighed down by investor concerns about property investments and the performance of its backbone life business. The company is turning to technology to bolster the productivity of its shrinking sales force at a time when demand for policies is weakening.
Impairments on its exposure to China Fortune Land Development Co., which became the first local developer to default since Beijing tightened controls on the sector last year, erased 20.8 billion yuan in profit in the first half, although management has said the situation is more likely to improve than worsen.
Nine-month net income decreased 21% from a year earlier, mainly because of impairment provisions related to China Fortune Land, the insurer said, adding that it made no major adjustment tied to the developer in the third quarter.
The benchmark Shanghai Shenzhen CSI 300 Index dropped 7% in the third quarter, erasing a 0.2% gain in the first half of the year.
New business value, which gauges the profitability of new life policies, fell 18% for the nine months, widening from a 12% decline in the first half. The firm is trying to boost long-term growth prospects by concentrating on higher-value products and reducing less-productive agents.
TORONTO – Canada’s main stock index was up more than 100 points in late-morning trading, helped by strength in base metal and utility stocks, while U.S. stock markets were mixed.
The S&P/TSX composite index was up 103.40 points at 24,542.48.
In New York, the Dow Jones industrial average was up 192.31 points at 42,932.73. The S&P 500 index was up 7.14 points at 5,822.40, while the Nasdaq composite was down 9.03 points at 18,306.56.
The Canadian dollar traded for 72.61 cents US compared with 72.44 cents US on Tuesday.
The November crude oil contract was down 71 cents at US$69.87 per barrel and the November natural gas contract was down eight cents at US$2.42 per mmBTU.
The December gold contract was up US$7.20 at US$2,686.10 an ounce and the December copper contract was up a penny at US$4.35 a pound.
This report by The Canadian Press was first published Oct. 16, 2024.
TORONTO – Canada’s main stock index was up more than 200 points in late-morning trading, while U.S. stock markets were also headed higher.
The S&P/TSX composite index was up 205.86 points at 24,508.12.
In New York, the Dow Jones industrial average was up 336.62 points at 42,790.74. The S&P 500 index was up 34.19 points at 5,814.24, while the Nasdaq composite was up 60.27 points at 18.342.32.
The Canadian dollar traded for 72.61 cents US compared with 72.71 cents US on Thursday.
The November crude oil contract was down 15 cents at US$75.70 per barrel and the November natural gas contract was down two cents at US$2.65 per mmBTU.
The December gold contract was down US$29.60 at US$2,668.90 an ounce and the December copper contract was up four cents at US$4.47 a pound.
This report by The Canadian Press was first published Oct. 11, 2024.
TORONTO – Canada’s main stock index was little changed in late-morning trading as the financial sector fell, but energy and base metal stocks moved higher.
The S&P/TSX composite index was up 0.05 of a point at 24,224.95.
In New York, the Dow Jones industrial average was down 94.31 points at 42,417.69. The S&P 500 index was down 10.91 points at 5,781.13, while the Nasdaq composite was down 29.59 points at 18,262.03.
The Canadian dollar traded for 72.71 cents US compared with 73.05 cents US on Wednesday.
The November crude oil contract was up US$1.69 at US$74.93 per barrel and the November natural gas contract was up a penny at US$2.67 per mmBTU.
The December gold contract was up US$14.70 at US$2,640.70 an ounce and the December copper contract was up two cents at US$4.42 a pound.
This report by The Canadian Press was first published Oct. 10, 2024.
