Ping An Insurance posts 8.8pc fall in first-half profit

China's Ping An Insurance (2318) reported an 8.8 percent drop in first-half net profit on Tuesday, hit by sluggish investment returns and weaker earnings at its banking unit amid a slowing economy.
The insurance giant had a net profit of 68 billion yuan (HK$74.08 billion), down from 74.62 billion yuan in the same period last year.
China's economy still faces "short- and medium-term challenges including a complex, severe international environment and lackluster domestic demand," a filing said.
Total investment income fell 30.2 percent to nearly 6 billion yuan in the first half, the filing showed.
The insurer's banking unit, Ping An Bank, reported a 3.9 percent decline in net profit year-on-year to 24.87 billion yuan in the first half, as sluggish loan demand weighed on its performance.
But new business in the value of life and health insurance segment, which measures the profitability of new policies sold, grew 39.8 percent to 22.3 billion yuan.

REUTERS