PING An Insurance’s profit dropped 4.3 per cent in the first quarter as stock-market declines and falling bond yields eroded investment returns.
Net income fell to 36.7 billion yuan (S$6.9 billion) in the three months ended March 31, from 38.4 billion yuan a year earlier, the Shenzhen-based company said in a filing to the Hong Kong stock exchange on Tuesday (Apr 23).
Operating profit, which strips out one-time items and short-term investment volatility, fell 3 per cent.
China’s stock market rout at the start of the year and lower bond yields have weighed on insurers’ investment returns. It’s hurt profits even as more customers seek to buy savings products. Co-chief executive officer Michael Guo said last month that profitability will recover after a 23 per cent drop in net income last year. BLOOMBERG
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