On August 21, Ping An Insurance (Group) Company Of China, Ltd. (SH601318, share price 53.35 yuan, total market value 966 billion yuan) convened its 2026 interim results conference, during which the group's management responded to pressing market questions. Regarding the half-year performance, General Manager Xie Yonglin stated that overall results were steady, with a series of reform initiatives yielding satisfactory outcomes. "In the second half, we will continue to adhere to the direction set by the board, further consolidating our business foundation and promoting growth through the sixteen-character guideline of high-value growth, service innovation, technological leadership, and legal compliance," he noted.

On the topic of performance, Xie highlighted that all eight core financial indicators achieved positive growth. Data shows that in the first half of 2026, Ping An recorded operating revenue of 575.138 billion yuan, up 15.0% year-on-year. Operating profit attributable to parent company shareholders reached 84.196 billion yuan, an increase of 8.3%, while net profit attributable to the parent surged 36.1% to 92.585 billion yuan. "Operating profit attributable to the parent, operating revenue, net profit, net assets, shareholder returns, comprehensive investment yield, new business value, and the property-casualty combined ratio all showed positive movement—these eight metrics are core to the group's financial health," Xie emphasized.

He added that the company's main business has grown steadily, with the diversified development of the life insurance segment clearly showing results. Non-agent channels now contribute nearly 40% of business, a very encouraging shift indicating more diversified and stable sources of life insurance revenue. In terms of product mix adjustments, the proportion of participating policies has risen significantly compared to the same period last year, as has the share of longer premium payment terms. Agent productivity and per-capita income have also improved markedly. The property-casualty segment posted a combined operating ratio of 95.1%, with new energy vehicle insurance performing notably well. The banking arm saw gains in both revenue and profit while maintaining stable asset quality. Xie also noted that the asset management segment's contribution to group revenue and profit has increased significantly this year. On service-driven value creation, the company aims to build sustainable competitiveness through differentiated offerings.

Turning to investment strategy for the second half, Co-CEO Guo Xiaotao addressed whether the approach would shift given the divergent A-share market and volatile tech stocks. He explained that investment is fundamentally about matching assets with liabilities to ensure returns that can withstand market cycles, supporting long-term healthy and sustainable development—this is Ping An's core investment philosophy. Under this framework, the company applies six matching principles: duration, yield, liquidity, capital, account, and regulatory alignment. "Our liability side has fully transitioned to participating products," Guo stressed. "Our investments do not exist in isolation; they are part of an asset-liability matching process. Participating, traditional, and universal accounts each have different investment requirements, hence the six principles."

Under these principles, the group's asset allocation consists of over 70% fixed income, roughly 20% equities, and about 7% alternative assets. "The stability of our investment returns stems from our balanced allocation strategy," Guo added. He expressed long-term optimism about the capital market as a barometer of China's economic development, noting that Ping An maintains a balanced allocation approach, using high-dividend stocks as a solid foundation while incorporating growth equities. Within growth stocks, the company is particularly bullish on technology, with favorable long-term views on tech, AI, high-end manufacturing, innovative drugs, healthcare, energy, and resources sectors. As of June 30, Ping An's insurance funds investment portfolio stood at 6.61 trillion yuan, up 1.9% from the start of the year. Over the past decade, the average net investment yield was 4.8%, with an average comprehensive investment yield of 4.9%.

Discussing life insurance trends, the company's life and health business posted operating profit of 55.872 billion yuan in the first half, up 2.3% year-on-year, with new business value reaching 24.847 billion yuan, a gain of 11.2%. Agent channel per-capita new business value rose 14.1% year-on-year, while bancassurance channel NBV increased 18.0%. Guo noted that low interest rates are a foreseeable long-term state, making spreads a critical indicator for the financial industry. As spreads continue to narrow, the broader financial sector is entering a phase of stock competition. The life insurance industry, however, is moving in the opposite direction—entering a golden period of development—because life insurance products offer long-term, stable guaranteed returns in a low-rate environment.

Guo outlined Ping An's group-level life insurance strategy: balanced channels, balanced products, differentiated services, and AI empowerment. "This series of strategies is crucial for ensuring sustainable growth in our life insurance performance, both now and in the future. We expect to achieve solid full-year growth and have strong confidence in this outlook," he said.

Regarding the company's share price, Vice President and CFO Fu Xin addressed the valuation question amid a broader pullback in financial and traditional sectors relative to tech stocks. "Market value management has always been a very important part of Ping An's work," Fu stated. She explained that the capital market has been complex and volatile, with rotation across financial sectors. "Based on valuations from several major banks, the current share price does not reflect Ping An's true worth. To assess the stock, first look at the industry: China's life insurance sector holds enormous potential and is in a golden development phase. Second, look at the company: our strategy is clear, and the integrated finance plus healthcare and eldercare model generates diversified revenue streams, making our development very stable—this forms the foundation of the share price. Third, look at value: the current price does not reflect our real value. Gold always shines; as Ping An continues its steady growth, the share price will ultimately reflect its true worth."

On AI investment returns, as of June 30, Ping An's AI agents facilitated sales of 57.313 billion yuan, with daily token consumption surging from 30 billion in December 2025 to over 120 billion by June 2026. Guo addressed the company's AI computing power spending strategy and value assessment: "AI success depends on four factors—data, algorithms, computing power, and scenarios. Ping An's strengths lie in data and scenarios." He emphasized that the company's technology and AI initiatives are not pursued for their own sake but rather to leverage vertical-domain data advantages across various business scenarios, empowering operations. "Our core AI development focuses on five areas: intelligent operations, intelligent management, intelligent business, intelligent services, and intelligent marketing," Guo added. In terms of cost reduction and efficiency gains, Ping An has achieved significant results over the past two to three years. Through the transition from digitalization to intelligent transformation, the company has accumulated experience in identifying which scenarios and data types can best enhance customer value. "The AI infrastructure is complete; we are now in the stage of AI-empowered value creation," he concluded.