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WorldReginfo - 8a6a4565-7a98-4c11-9c5f-22ab6ec9c044 Contents ABOUT US FINANCIAL STATEMENTS 1 Introduction 99 Report on Review of Interim Condensed 3 Financial Highlights Consolidated Financial Information 4 Chairman’s Statement 100 Interim Consolidated Income Statement 101 Interim Consolidated Statement of Comprehensive Income MANAGEMENT DISCUSSION AND ANALYSIS 102 Interim Consolidated Statement of Financial Position 6 Customer Development 104 Interim Consolidated Statement of 9 Technology-Powered Business Transformation Changes in Equity 14 Business Analysis 106 Interim Consolidated Statement of Cash Flows 14 Performance Overview 107 Notes to the Interim Condensed Consolidated 18 Life and Health Insurance Business Financial Information 26 Property and Casualty Insurance Business 32 Investment Portfolio of Insurance Funds OTHER INFORMATION 36 Banking Business 43 Asset Management Business 157 Definitions Corporate Information 48 Technology Business 160 52 Analysis of Embedded Value 63 Liquidity and Capital Resources 68 Sustainability CORPORATE GOVERNANCE 76 Changes in the Share Capital and Shareholders’ Profile 78 Directors, Supervisors and Senior Management 81 Significant Events Cautionary Statements Regarding Forward-Looking Statements To the extent any statements made in this report contain information that is not historical, these statements are essentially forward- looking. These forward-looking statements include but are not limited to projections, targets, estimates and business plans that the Company expects or anticipates will or may occur in the future. These forward-looking statements are subject to known and unknown risks and uncertainties that may be general or specific. Certain statements, such as those including the words or phrases “potential”, “estimates”, “expects”, “anticipates”, “objective”, “intends”, “plans”, “believes”, “will”, “may”, “should”, and similar expressions or variations on such expressions may be considered forward-looking statements. Readers should be cautioned that a variety of factors, many of which are beyond the Company’s control, affect the performance, operations and results of the Company, and could cause actual results to differ materially from the expectations expressed in any of the Company’s forward-looking statements. These factors include, but are not limited to, exchange rate fluctuations, market shares, competition, environmental risks, changes in legal, financial and regulatory frameworks, international economic and financial market conditions and other risks and factors beyond our control. These and other factors should be considered carefully and readers should not place undue reliance on the Company’s forward-looking statements. In addition, the Company undertakes no obligation to publicly update or revise any forward-looking statement that is contained in this report as a result of new information, future events or otherwise. None of the Company, or any of its employees or affiliates is responsible for, or is making, any representations concerning the future performance of the Company. WorldReginfo - 8a6a4565-7a98-4c11-9c5f-22ab6ec9c044 Introduction ABOUT US Ping An strives to become a world-leading technology- powered retail financial services group. Under the “finance + technology” and “finance + ecosystem” strategies, Ping An focuses on two major industries of pan financial assets and pan health care. Ping An applies new technologies to traditional financial businesses and five ecosystems, namely financial services, health care, auto services, real estate services, and smart city services. Ping An is empowering financial services with technologies, empowering ecosystems with technologies, and empowering financial services with ecosystems. Ping An exploits local advantages while adhering to global corporate governance standards. Ping An provides 196 million retail customers and 576 million internet users with financial products and services under an integrated financial business model of “one customer, multiple products, and one-stop services.” In the first half of 2019, the Group’s Operating profit after tax of the life and operating profit attributable to health insurance business rose 36.1% year shareholders of the parent company on year to RMB48,433 million. Benefiting rose 23.8% year on year to RMB73,464 from our transformation toward high- million. The unannualized operating ROE value business and the improved business was 12.3%. The net profit attributable to shareholders of the parent company rose portfolio, our new business value (NBV) 68.1% year on year to RMB97,676 million. margin rose 5.7 pps year on year to 44.7% and NBV grew by 4.7% year on year. Our With strong operating profit growth, Ping technology-powered transformation An continues to increase cash dividends. An interim dividend of RMB0.75 per share continued. AI was applied to 100% of sales will be paid in cash, up 21.0% year on year. agent recruitment interviews. Our smart chatbot AskBob answers agents’ inquiries Customer development yielded strong with an accuracy rate of 95%. results. Operating profit of retail business rose by 32.1% year on year to RMB66,576 Ping An Property & Casualty’s operating million, accounting for 90.6% of operating profit grew by 69.5% year on year to profit attributable to shareholders of RMB10,039 million. The combined ratio the parent company. Retail customers was 96.6%, indicating excellent business grew by 6.6% from the beginning of 2019 quality. Ping An Property & Casualty is the to 196 million. In the first half of 2019, the Company acquired 20.09 million new industry leader for online claims services. customers, 33.8% of whom were sourced We developed AI-powered image-based from internet users within the Group’s five loss assessment and precise customer ecosystems. Operating profit per customer profiling technologies. Capitalizing on gained 20.9% year on year to about these technologies, we launched the RMB340. As of June 30, 2019, contracts per “Ping An Motor Insurance Trust Claim” customer rose by 0.05 from the beginning service for auto owners with safe driving of 2019 to 2.58. About 69.37 million retail behaviors. Through this service, we settle customers held multiple contracts with different subsidiaries, an increase of a claim within an average of 168 seconds 9.0% from the beginning of 2019. These with no back-end manual operation customers accounted for 35.4% of total involved. customers, up 0.8 pps from the beginning of 2019. WorldReginfo - 8a6a4565-7a98-4c11-9c5f-22ab6ec9c044 Interim Report 2019 Ping An Insurance (Group) Company of China, Ltd. 1 Introduction Ping An Bank maintained stable, healthy With increasing brand value, the Company business growth. The Bank realized a ranked 29th on the Fortune Global 500 list, net profit of RMB15,403 million, up 15.2% 7th on the Forbes Global 2000 list, 40th on year on year due to steady increases in the BrandZTM Top 100 Most Valuable Global net interest margin (NIM) and net non- Brands list, and again 1st among global interest revenue. Ping An Bank furthered insurance conglomerates. its retail transformation. Retail banking We proactively fulfill our responsibilities accounted for 56.9% of revenue (up 5.7 to all stakeholders. Regarding sustainable pps year on year) and 70.2% of net profit development as a strategy of the (up 2.3 pps year on year). The balance of Group, Ping An has fully integrated ESG retail deposits increased by 17.2% from the (Environment, Social and Governance) beginning of 2019. Ping An Bank continues standards into business operations to de-risk itself. Both the non-performing and established the ESG policy regime loan ratio and the percentage of special to ensure long-term steady growth. mention loans dropped by 0.07 pps and Also, we have furthered the Ping An 0.25 pps respectively from the beginning of Rural Communities Support comprising 2019. the Village Officer Program, Village Ping An continued to develop Doctor Program and Village Teacher technological strengths. As of June Program for smart poverty alleviation 30, 2019, Ping An’s technology patent via industry promotion, health care and applications increased by 5,779 from the education support. As of June 30, 2019, beginning of the year to 18,050, more than we had implemented the Ping An Rural most international financial institutions. Communities Support in 13 provinces or The applications include 3,959 filed under autonomous regions across China. We the Patent Cooperation Treaty (PCT) had input RMB10,373 million for poverty and abroad. Our technological strengths alleviation, built or upgraded 622 rural clinics received further global recognition as we and 607 rural schools, and trained 6,926 have won awards in the fields including village doctors and 5,898 village teachers. financial services, health care and smart city services. Operating Profit Attributable to Shareholders of Basic Operating EPS (in RMB) the Parent Company (in RMB million) 1H 2019 73,464 1H 2019 4.12 1H 2018 59,339 1H 2018 3.33 Equity Attributable to Shareholders Embedded Value (in RMB million) of the Parent Company (in RMB million) Jun 30, 2019 625,327 Jun 30, 2019 1,113,181 Dec 31, 2018 556,508 Dec 31, 2018 1,002,456 Total Revenue (in RMB million) Total Assets (in RMB million) 1H 2019 690,246 Jun 30, 2019 7,562,398 1H 2018 588,901 Dec 31, 2018 7,142,960 New Business Value(1) (in RMB million) Interim Dividend per Share (in RMB) 1H 2019 41,052 1H 2019 0.75 1H 2018 39,209 1H 2018 0.62 Note: (1) The assumptions and method used for 2018 year-end NBV are applied