Shares of Ping An Insurance (Group) yesterday dropped by the most in a week on concerns that the mainland's second-largest insurer will record a loss for this year following a hefty provision for its 4.99 per cent stake in troubled European financial group Fortis. The company's H shares fell 8 per cent to HK$46, erasing a rally attempt last week when the Shenzhen-based insurer scrapped a separate Euro2.15 billion (HK$22.66 billion) deal to buy half of Fortis' asset management unit. Its A shares in Shanghai edged up 1 per cent to close at 33.40 yuan (HK$37.92). After the governments of Belgium, the Netherlands and Luxembourg failed to rescue Fortis, Ping An said on Sunday it would book an impairment charge of 15.7 billion yuan in the third quarter. The charge far exceeds Ping An's 9.49 billion yuan net profit for the first half, suggesting the insurer is likely to book a loss for the first three quarters unless it makes other significant gains. Goldman Sachs and Citigroup slashed earnings estimates for Ping An for the full year by 97 per cent and 94 per cent respectively in light of the insurer's recognition of the Fortis share losses. 'Ping An will not further increase its stake in Fortis shares and is likely to reduce its investment in Fortis in the medium term,' said Citigroup in a research report. 'We expect Ping An's stock price to be under short-term pressure as investors adjust earnings expectation and digest 'new Ping An' from a strategy perspective.' In its maiden overseas acquisition, Ping An paid US$2.7 billion for a 4.2 per cent stake in Fortis in November last year and boosted that stake to 4.99 per cent in March. China International Capital Corp estimates Ping An's almost 5 per cent share in Fortis would be halved. The insurer had planned to venture into the global asset management business by buying half of the stake at Fortis Investment in March.