Live Performance Meeting | Ping An of China Guo Xiaotao: The core investment approach this year is "finding certainty in uncertainty"

Every reporter｜Pan Ting Every editor｜Huang Bowen

On March 27, Ping An of China held its 2025 annual performance press conference, where the management team responded to hot topics of market concern.

“Looking back at 2025, faced with changing and complex opportunities and challenges, Ping An delivered a report of steady growth.” Ping An’s Deputy General Manager Fu Xin used the term “steady growth” to evaluate Ping An’s operational performance in 2025 during the performance report at the conference.

On performance: Over 90 billion yuan in unrealized gains not included in current profits

Fu Xin stated, “Under the current accounting classification, Ping An has over 90 billion yuan in unrealized gains not included in current profits, but it has significantly strengthened our balance sheet, laying a very solid foundation for future development, sustainable profit release, and stable dividends.”

Data shows that 57% of Ping An’s stocks are classified as FVTOCI (measured at fair value with changes recognized in other comprehensive income), contributing over 90 billion yuan in pre-tax unrealized gains, which are not included in profits but directly enhance net assets.

In 2025, Ping An achieved operating profit attributable to shareholders of the parent company of 134.415 billion yuan, a year-on-year increase of 10.3%; the net profit attributable to shareholders of the parent company after deducting non-recurring gains and losses was 143.773 billion yuan, up 22.5%; operating income was 1,050.506 billion yuan, a year-on-year increase of 2.1%. By the end of 2025, the equity attributable to shareholders of the parent company exceeded 1 trillion yuan for the first time, reaching 1,000.419 billion yuan, an increase of 7.7% compared to the beginning of the year.

On dividends: Total dividends distributed over the past decade exceed 370 billion yuan

“In the past decade, our dividends have consistently increased, with a total of over 370 billion yuan distributed in the last ten years.” Fu Xin said, “Such a dividend payout and our dividend yield are worth continuous attention from investors and shareholders, whether in the A-share or H-share market.”

Data shows that based on steady performance, in 2025, Ping An plans to distribute an annual dividend of 2.70 yuan per share, a year-on-year increase of 5.9%, with a total cash dividend of 48.891 billion yuan, marking the 14th consecutive year of increase.

On investment: Seeking certainty amid uncertainty

“Ping An is long-term capital, patient capital, so in our investment process, short-term fluctuations are not important to us. What matters more is how to navigate through cycles and provide long-term, steady, and sustainable returns for our clients and shareholders. This is a very important thought and principle.” Ping An’s Co-CEO Guo Xiaotao said.

Regarding investment strategy, Guo Xiaotao introduced, “Our investments must closely align with the liability side, which is why we talk about the ‘five matches’: duration match, cost match, product match, economic cycle match, and regulatory requirement match. The ‘five matches’ are our important guiding principles for asset allocation.”

“Our core investment idea this year is ‘seeking certainty amid uncertainty.’” Guo Xiaotao pointed out that for patient capital like Ping An, the most important thing in investment is to be fully aligned with the direction of national economic development.

At the same time, Guo Xiaotao also mentioned that gold is an important asset class in the overall asset allocation. Ping An began to allocate a certain amount of gold investments starting early 2025. “In such a macro environment, the investment returns brought by gold have also met our expected results.”

Data shows that in 2025, Ping An’s insurance fund investment portfolio achieved a comprehensive investment return rate of 6.3%, an increase of 0.5 percentage points year-on-year. In addition, Ping An’s average net investment return rate over the past 10 years was 4.8%, and the average comprehensive investment return rate over the past 10 years was 4.9%, exceeding the long-term investment return assumptions for embedded value.

On integrated finance: “Nine to One”

“AI is a major trend in global technological development. For Ping An Group, we have always led the industry in technology investment and innovation. AI is not a multiple-choice question for us, but a mandatory question, and our investment in AI and technology has been consistent.” Guo Xiaotao stated at the press conference.

He introduced that Ping An has a significant technology platform upgrade this year—integrated finance “Nine to One,” which aims to create a comprehensive solution of “one customer, multiple accounts, multiple products, and one-stop service,” integrating all offline apps into one large entry or platform, achieving the integration of traffic, entry, customer service experience, and data across the entire group.

It is understood that Ping An’s integrated financial model has unique advantages. The four categories of products—protection, assets, credit, and services—meet customers’ comprehensive needs. Data shows that among Ping An’s customers, the retention rate of clients holding three or more products reaches 99%, significantly enhancing customer loyalty; service-related products increase customer stickiness, with a retention rate of 93% for customers enjoying healthcare and elderly care ecosystem service rights in 2025.

On stock price performance: Measuring from the industry, company, and valuation perspectives

“Recently, due to fluctuations in the capital market, including some geopolitical fluctuations, I believe that not only Ping An but also many other companies and the entire market’s stock price fluctuations will also be exacerbated. We have also paid attention to relevant information on the investment side.” Fu Xin stated.

Regarding Ping An’s stock price performance, Fu Xin said it should be measured from three perspectives.

First, look at the industry. In the industry where Ping An operates, life insurance has entered a golden development period, and the integrated finance and healthcare sectors are also the most important areas and directions for industry development potential. The industry in which Ping An operates lays the foundation for the company’s sustainable growth in the next 3 to 5 years and 5 to 10 years.

Second, look at the company. From the performance of Ping An, the company’s development is very steady, with forward-looking indicators of operating profit and future profits, including NBEV (new business embedded value), CSM (contractual service margin), etc., all of which reflect the very good operational and business status of the company.

“From the company’s perspective, Ping An is also a high-value company with steady operations, continuous improvements and optimizations in operations, and good quality.” Fu Xin stated.

Third, look at the valuation. “Gold will always shine. In recent years, the market and investors have recognized Ping An very much, and its valuation is still at a low level. I believe that with more investors’ recognition, the shine of gold will become brighter.” Fu Xin believes.

Cover image source: Zhang Yi