Oct. 27 (Bloomberg) -- Ping An Insurance (Group) Co., China’s second-biggest insurer, said third-quarter profit fell 44 percent from a year earlier as stock-market declines led to lesser investment income.
Net income dropped to 1.76 billion yuan ($277 million), or 0.22 yuan a share, from 3.15 billion yuan, or 0.41 yuan, a year earlier, the Shenzhen-based company said in a filing to the Shanghai stock exchange yesterday.
Ping An joins smaller rival China Pacific Insurance (Group) Co. in suffering on investment income after a 15 percent decline in the benchmark Shanghai Composite Index. Net premiums earned in July to September rose to 39.63 billion yuan from 31.2 billion yuan a year earlier, the insurer said.
Investment income slumped 43 percent to 5.2 billion yuan from a year earlier, it said. Fair-value losses on investments were 251 million yuan, turning from gains of 581 million yuan a year earlier, Ping An reported.
Banking profit for the first nine months reached 5.32 billion yuan, after unit Shenzhen Development Bank Co. reported a 74 percent jump in third-quarter net income as loans expanded.
Ping An said in August it would spend as much as 20 billion yuan to bolster its stake at Shenzhen Development Bank to at least 59 percent from 52 percent. The deal still needs approval from regulators, Ping An said yesterday.
--Dingmin Zhang, with assistance from Chua Baizhen in Beijing. Editors: Richard Frost, Andreea Papuc
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