Diversified Ping An warns of uncertainty after net jumps 140pc

Ping An Insurance (Group), the mainland's second-largest insurer, warned of uncertainty down the road after announcing a 140 per cent surge in first-half profit to 9.96 billion yuan on strong growth in investment income and expansion of its banking and investment businesses.

Chairman Ma Mingzhe said Ping An's second-half earnings should benefit from the country's economic growth but 'further escalation of market competition and fluctuations in the capital markets will also expose us to certain challenges and earnings volatility'.

The group is profiting from a decision earlier this year to develop into a full-service financial firm within the next three to five years by boosting its banking and asset management segments. While diversifying income source, this also will expose Ping An to market volatility.

The changes led to the non-insurance sector contributing 32 per cent to first-half profit, up from only 8 per cent in the same period last year.

The group last month announced that first-half net profit more than doubled, in line with regulations that mainland-listed companies must declare if they expect profits to fall or rise more than 50 per cent in any reporting period.

Consolidated investment income rose 167 per cent to 25.66 billion yuan in the first half. The total investment yield increased to 9.9 per cent from 5.8 per cent last year.