Ping An Insurance of China : 2021 Annual Results Report

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Ping An Insurance (Group) Company of China, Ltd.

(A joint stock limited company incorporated in the People's Republic of China with limited liability)

(Stock Code: 2318)

ANNOUNCEMENT OF AUDITED RESULTS

FOR THE YEAR ENDED DECEMBER 31, 2021

The board of directors (the "Board") of Ping An Insurance (Group) Company of China, Ltd. ("Ping An" or the "Company") hereby announces the audited results of the Company and its subsidiaries for the year ended December 31, 2021. This announcement, containing the full text of the 2021 Annual Report of the Company, complies with the relevant requirements of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "HKEX") in relation to the information to accompany preliminary announcements of annual results.

Both the Chinese and English versions of this results announcement are available on the websites of the Company (www.pingan.cn) and the HKEX (www.hkexnews.hk). This results announcement is prepared in accordance with the International Financial Reporting Standards. The printed version of the Company's 2021 Annual Report will be delivered to the H shareholders of the Company and available for viewing on the websites of the HKEX (www.hkexnews.hk) and the Company (www.pingan.cn) before early April 2022.

By order of the Board

Ma Mingzhe

Chairman

Shenzhen, the PRC, March 17, 2022

As at the date of this announcement, the executive directors of the Company are Ma Mingzhe, Xie Yonglin, Tan Sin Yin, Yao Jason Bo and Cai Fangfang; the non-executive directors of the Company are Soopakij Chearavanont, Yang Xiaoping and Huang Wei; the independent non-executive directors of the Company are Ouyang Hui, Ng Sing Yip, Chu Yiyun, Liu Hong, Ng Kong Ping Albert and Jin Li.

Contents

ABOUT US	CORPORATE GOVERNANCE
i	Five-Year Summary	114	Corporate Governance Report
1	Introduction	133	Changes in the Share Capital and
2	Business Performance at a Glance		Shareholders' Profile
136	Directors, Supervisors, Senior Management
4	Chairman's Statement
	and Employees
MANAGEMENT DISCUSSION AND ANALYSIS	154	Report of the Board of Directors and
	Significant Events
		173	Report of the Supervisory Committee

8 Customer Development

14	Technology-Powered Business Transformation	FINANCIAL STATEMENTS
18	Healthcare as a New Driver of Value Growth
20	Business Analysis	176	Independent Auditor's Report
20	Performance Overview	184	Consolidated Income Statement
24	Life and Health Insurance Business	185	Consolidated Statement of Comprehensive
34	Property and Casualty Insurance Business		Income
186	Consolidated Statement of Financial Position
40	Investment Portfolio of Insurance Funds
188	Consolidated Statement of Changes in Equity
46	Banking Business
189	Consolidated Statement of Cash Flows
54	Asset Management Business
190	Notes to Consolidated Financial Statements
60	Technology Business
66	Analysis of Embedded Value	OTHER INFORMATION
76	Liquidity and Capital Resources
82	Risk Management	339	Ping An Milestones
	Sustainability
96	340	Honors and Awards
110	Prospects of Future Development	341	Glossary
		344	Corporate Information

Cautionary Statements Regarding Forward-Looking Statements

To the extent any statements made in this Report contain information that is not historical, these statements are essentially forward- looking. These forward-looking statements include but are not limited to projections, targets, estimates and business plans that the Company expects or anticipates may or may not occur in the future. Words such as "potential", "estimates", "expects", "anticipates", "objective", "intends", "plans", "believes", "will", "may", "should", variations of these words and similar expressions are intended to identify forward-looking statements.

These forward-looking statements are subject to known and unknown risks and uncertainties that may be general or specific. Readers should be cautioned that a variety of factors, many of which are beyond the Company's control, affect the performance, operations and results of the Company, and could cause actual results to differ materially from the expectations expressed in any of the Company's forward-looking statements. These factors include, but are not limited to, exchange rate fluctuations, market shares, competition, environmental risks, changes in legal, financial and regulatory frameworks, international economic and financial market conditions and other risks and factors beyond our control. These and other factors should be considered carefully and readers should not place undue reliance on the Company's forward-looking statements. In addition, the Company undertakes no obligation to publicly update or revise any forward-looking statement that is contained in this Report as a result of new information, future events or otherwise. Neither the Company nor any of its employees or affiliates is responsible for, or is making, any representations concerning the future performance of the Company.

Remaining true to our original aspiration and embarking on a new journey

At Nanhu began the CPC's magnificent centenary journey

At Shekou began Ping An's three-decade development history

In retrospect

We remain true to our original aspiration and fulfill our duties as an insurer By providing customers with heartwarming services

Today

We help transform the real economy and support small and micro-businesses By channeling trillions of renminbi into the real economy

So many years have passed

China's carbon peak and neutrality initiatives, and the Ping An Rural Communities Support

Building orchestrated ecosystems through high-quality development Being people-centric and customer-oriented

Strengthening business through reform, and simplifying finance with technology Finance + healthcare, a lighthouse for the future

A broad road, bright and far-reaching

To become a century-old venture, Ping An focuses on the long run A long, long journey under the shining stars

Ping An of China, for China's peace and security

Strives for national rejuvenation in sync with the times and people Looking forward together

To happy life, a new chapter of prosperity

Five-Year Summary

	2021/	2020/	2019/	2018/	2017/
	December	December	December	December	December
(in RMB million)	31, 2021	31, 2020	31, 2019	31, 2018	31, 2017
CUSTOMER DEVELOPMENT
Number of internet users (in million)	647.32	598.04	515.50	443.59	429.51
Number of retail customers (in million)	227.31	218.43	200.48	180.22	156.90
Number of contracts per customer (contract)	2.81	2.76	2.64	2.54	2.38
Operating profit per customer (in RMB)	571.89	563.00	612.54	542.28	474.99
Proportion of retail customers holding multiple contracts	39.3
with different subsidiaries (%)	38.0	36.8	34.3	29.6
Proportion of new customers sourced from the Group' s	35.8
internet user base (%)	36.0	40.7	34.4	37.2
THE GROUP
Operating profit attributable to shareholders of the parent	147,961
company	139,470	132,955	112,573	94,708
Operating ROE (%)	18.9	19.5	21.7	21.9	22.0
Basic operating earnings per share (in RMB)	8.40	7.89	7.48	6.31	5.31
Dividend per share (in RMB)	2.38	2.20	2.05	1.72	1.50
Net profit attributable to shareholders of the parent	101,618
company	143,099	149,407	107,404	89,088
Equity attributable to shareholders of the parent company	812,405	762,560	673,161	556,508	473,351
Group comprehensive solvency margin ratio (%)	233.5	236.4	229.8	216.4	214.9
Total assets	10,142,026	9,527,870	8,222,929	7,142,960	6,493,075
Total liabilities	9,064,303	8,539,965	7,370,559	6,459,317	5,905,158
LIFE AND HEALTH INSURANCE BUSINESS
Operating return on embedded value (%)	11.1	14.5	25.0	30.8	35.5
Embedded value	876,490	824,574	757,490	613,223	496,381
New business value	37,898	49,575	75,945	72,294	67,357
Operating profit	97,075	93,666	88,950	71,345	52,824
Residual margin	940,733	960,183	918,416	786,633	616,319
Comprehensive solvency margin ratio of Ping An Life (%)	230.4	241.8	231.6	218.8	234.1
PROPERTY AND CASUALTY INSURANCE BUSINESS
Net profit	16,192	16,159	22,808	12,274	13,372
Combined ratio (%)	98.0	99.1	96.4	96.0	96.2
Comprehensive solvency margin ratio (%)	278.4	241.4	259.2	223.8	217.5
BANKING BUSINESS
Net profit	36,336	28,928	28,195	24,818	23,189
Net interest margin (%)	2.79	2.88	2.95	2.35	2.37
Cost-to-income ratio (%)	28.30	29.11	29.61	30.32	29.89
Non-performing loan ratio (%)	1.02	1.18	1.65	1.75	1.70
Provision coverage ratio for loans more than 60 days	338.22
overdue (%)	219.78	190.34	141.24	N/A
Core tier 1 capital adequacy ratio (%)	8.60	8.69	9.11	8.54	8.28
ASSET MANAGEMENT BUSINESS
Trust business net profit	229	2,479	2,598	3,012	3,957
Securities business net profit	3,829	3,102	2,376	1,680	2,123
TECHNOLOGY BUSINESS
Operating profit	9,448	8,221	4,661	7,748	5,488

Note: Some indicators have been disclosed for less than five years. Certain figures have been reclassified or restated to conform to relevant periods' presentation.

i

Introduction

ABOUT US

Ping An strives to become a world-leading retail financial services group. Ping An actively responds to China's 14th Five-YearPlan, and serves the real economy and national strategies including "Digital China" and "Healthy China" via financial services. Ping An advances the "integrated finance + healthcare" strategic upgrade, builds the "integrated finance + HMO managed care" service system, develops the "finance + eldercare" and "finance + healthcare" industry ecosystems, and provides professional "financial advisory, family doctor, and eldercare concierge" services. Ping An advances smart, digital transformation, and employs technologies to improve the quality and efficiency of its financial businesses and enhance risk management. Moreover, Ping An applies innovative technologies to "financial services, healthcare, auto services, and smart city" ecosystems. Ping An develops heartwarming products and services by leveraging fintech and its healthcare ecosystem. By doing so, Ping An empowers financial services with technologies, empowers ecosystems with technologies, and empowers financial services with ecosystems. Ping An continuously optimizes its integrated financial business model of "one customer, multiple products, and one-stopservices," leveraging local advantages while adhering to global standards for corporate governance and business management. Ping An provides diverse products and convenient services to over 227 million retail customers and over 647 million internet users. While remaining focused on retail business, Ping An extends its "1 + N" services model to its corporate business to meet customer demands for integrated financial services. In this way, Ping An increases the value of its corporate customers and the contribution of its corporate business.

World-leading

Retail Financial Services Group

Integrated Finance	Healthcare

Finance + Technology	Finance + Ecosystem

Insurance Banking Asset Management

Financial		Healthcare		Auto		Smart
Services			Services		City
	Ecosystem
Ecosystem			Ecosystem		Ecosystem

Annual Report 2021

Ping An Insurance (Group) Company of China, Ltd. 1