---
endpoint: analytics
pattern: Insurance
status: done
latency_ms: 143145
conversation_id: d855708e-612c-4d65-bfe4-c817fbbccd7f
citations: 8
created: 2026-05-31 21:48:40Z
---

# What is Ping An’s core business franchise and the key components of its operating model?

## Ping An Insurance (Group) — Core Business Franchise & Operating Model

Ping An (2318 HK / 601318 CH) is one of China's largest integrated financial conglomerates, structured as a multi-license holding company that combines insurance, banking and asset management with a proprietary health and senior care service ecosystem. The franchise is purpose-built to monetize a single retail customer relationship across multiple product lines.

### 1. Strategic Identity

Ping An positions itself as a **"world-leading integrated financial, health and senior care services group"** [1]. The articulated mission is to deliver **"one customer, multiple accounts, multiple products, and one-stop services"** under a customer-centric, "worry-free, time-saving, and money-saving" value proposition to **236 million retail customers (1H24)** [1], rising to **~247 million (1H25)** [3].

### 2. Three Core Financial Businesses

Operating profit is anchored by three reporting segments [1]:

| Segment | Subsidiary | Market position |
|---|---|---|
| Life & Health (L&H) | Ping An Life | #2 life insurer in China by premium income [4] |
| Property & Casualty (P&C) | Ping An P&C | #2 P&C insurer in China by premium income [4] |
| Banking | Ping An Bank | Top joint-stock commercial bank in China by assets and net profit [4] |

Supporting these are **Ping An Asset Management (#2 insurance asset manager in China by AUM)** [4] and the technology/health subsidiaries (Ping An Health/Good Doctor, Lufax, OneConnect, Autohome).

Key 1H24 metrics that define the franchise's scale: 16.4% annualized operating ROE; operating profit attributable to shareholders of RMB78.5bn; the three core businesses delivered RMB79.6bn of operating profit (+1.7% YoY); L&H NBV of RMB22.3bn (+11.0% YoY); P&C insurance revenue of RMB161.9bn (+3.9% YoY) [1].

### 3. The "Integrated Finance" Operating Model — Five Pillars

Ping An's own framing of its unique advantages [2][4]:

**Pillar A — Full-license platform with cross-subsidiary synergies.** Ping An holds a **"full suite of financial licenses"** across insurance, banking and asset management, with a robust shareholding structure that allows member companies to collaborate on **customer acquisition, activation, migration and retention**, thereby reducing **operational and risk costs** [2][4].

**Pillar B — Domestic focus on core financial businesses.** Coverage is concentrated on the Chinese mainland, where each of the three segments holds a top-tier league position (#2 life, #2 P&C, #2 insurance asset manager, top joint-stock bank) [4].

**Pillar C — Online-Merge-Offline (OMO) channel network.**
- **Offline:** **>1.3 million sales service team members** and **>7,000 outlets in 330 cities across China** providing professional financial advisory [2].
- **Online:** A portfolio of proprietary super-apps — **Ping An Jin Guan Jia, Ping An Pocket Bank, Ping An Auto Owner, Ping An Good Doctor** — for convenient cross-sell and service [2].

**Pillar D — Proprietary Health & Senior Care Ecosystem.** This is the strategic differentiator versus pure-play insurers. The ecosystem is built on an extensive partner network: **nearly 50,000 contracted external doctors; partnerships with >10,000 hospitals (including all top 100 and 3A hospitals), >100,000 healthcare management institutions, and ~228,000 pharmacies (~36% of all pharmacies in China)** [5]. Senior-care covers ten scenarios and 565 home-based service categories [5]. The ecosystem demonstrably enables the core financial businesses: **~63% of retail customers were entitled to health and senior care service benefits as of 30 Jun 2025**, and these customers held **~3.37 contracts and ~RMB61,400 in AUM per capita — 1.5x and 4.1x respectively** vs. non-entitled customers [3]. Customers entitled to health/senior care benefits contributed **~70% of Ping An Life's 1H25 NBV** (27% health, 42% senior care) [3].

**Pillar E — Technology platform.** Comprehensive digital transformation underpins customer acquisition, risk-pricing, claims and the management of the ecosystem [1].

### 4. Cross-Sell Economics (the "Why Integrated Finance Works")

The operating model's value proposition is empirically visible in customer-level metrics [7]:
- **Retail customers (Jun-24): 236m** (+1.9% YTD); **24.9% held ≥4 contracts within the Group**; retention rate **97.8%**.
- **Contracts per retail customer: 2.93**; **>87.92 million retail customers held multiple contracts with different subsidiaries** [7].
- Management cites lower customer acquisition cost, lower management/service costs, and higher retention as the primary efficiency benefits of integrated finance [7].
- On the life insurance side specifically, management has stated that **~20% of agents' income comes from selling integrated-finance (non-life) products** — described as a unique competitive advantage built up over 15 years [6].

### 5. Life Insurance Reform — "4 Channels + 3 Products"

The L&H engine is being restructured around the **"4 channels + 3 products" strategy**, with the agent channel reformed for higher productivity and supplementary channels (bancassurance, community grid, lower-tier outlets) scaling alongside [1][6]. Agent productivity continued to rise in 1H24 with **NBV of the agent channel +10.8%** and **NBV per agent +36.0% YoY**; agent headcount was ~340,000 at Jun-24 [1]. Non-agent channel revenue contribution rose from ~9% to ~15% post-reform [6].

### 6. Sell-Side View

CLSA carries Ping An at **O-PF (Outperform)** for both the H-share (2318 HK) and A-share (601318 CH), with target prices of **HK$61.50** and **RMB72.80**, respectively (current prices at the time of the 12 May 2025 note: HK$46.50 and RMB51.75) [8].

### Summary

Ping An's franchise is best understood as a **federated financial-services group** (insurance #2 in life and P&C, top-tier joint-stock bank, #2 insurance asset manager) deliberately wrapped in a **proprietary health and senior care service ecosystem** [4][3]. The operating model converts that platform breadth into measurable cross-sell — ~63% of retail customers tap the ecosystem, those customers hold 1.5x the contracts and 4.1x the AUM of non-users, and they generate ~70% of life NBV [3]. The OMO distribution backbone (1.3m+ agents, 7,000+ outlets, plus a stack of proprietary apps) and the management discipline of "one customer, one account, one-stop services" are the operational levers that make integrated finance work in practice [2][7].

---
**Sources**
[1] Ping An Insurance (Group) Company of China Ltd — Q2 2024 Interim Report (1H24)
[2] Ping An Insurance (Group) Company of China Ltd — Interim Report 2025 (1H25)
[3] Ping An Insurance (Group) Company of China Ltd — Interim Report 2025 (Health & Senior Care Ecosystem section, 1H25)
[4] Ping An Insurance (Group) Company of China Ltd — Q2 2024 Interim Report (Unique Advantages in Integrated Finance)
[5] Ping An Insurance (Group) Company of China Ltd — Q3 2023 Interim Report
[6] Ping An Insurance (Group) Company of China Ltd — Earnings Call, H2 2021
[7] Ping An Insurance (Group) Company of China Ltd — Q2 2024 Interim Report (Integrated Finance metrics)
[8] CLSA — China Insurance: Transfer of coverage, 12 May 2025 (607958951LinqAlpha.PDF)

## Citations

- [1] **Ping An Insurance (Group) Company of China Ltd - Q2 2024 - Report** · external
- [2] **ir324664-e101.pdf** · external
- [3] **ir324664-e101.pdf** · external
- [4] **Ping An Insurance (Group) Company of China Ltd - Q2 2024 - Report** · external
- [5] **Ping An Insurance (Group) Company of China, Ltd. - Q3 2023 - Report** · external
- [6] **Ping An Insurance (Group) Company of China, Ltd., H2 2021** · external
- [7] **Ping An Insurance (Group) Company of China Ltd - Q2 2024 - Report** · external
- [8] **607958951LinqAlpha.PDF** · clsa — <s3://ext-linq-rms-clsa/2025/05/607958951LinqAlpha.PDF>

