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BEIJING/SHANGHAI, April 23 (Reuters) - Ping An Insurance's first-quarter net profit fell 4.3%, hit by shrinking returns from property and casualty insurance as well as its asset management operations, the Chinese insurance giant reported on Tuesday.
Turbulence in China's stock market, declining interest rates and the country's property sector woes have dragged on insurance companies. Ping An Trust failed to repay a roughly $107 million trust product on time this month, adding to signs of spreading stress in China's financial markets.
"China's economy is recovering, but the foundation for sustainable recovery needs to be further consolidated, and there are still challenges to enterprises seeking steady development," Ping An Insurance's said as it posted first-quarter net profit of 36.71 billion yuan ($5.07 billion), down from 38.35 billion yuan a year earlier.
Group operating profit was down 3% at 38.71 billion yuan, with the property and casualty insurance business registering a 14.4% decline to 3.87 billion yuan while its core life and health insurance business grew by 2.2%.
Operating profits of its asset management business, including Ping An Securities and Ping An Trust and other asset management subsidiaries, fell 30.3% year on year to 910 million yuan.
Ping An Bank , meanwhile, lifted first-quarter net profit by 2.3% to 14.93 billion yuan.
($1 = 7.2468 Chinese yuan renminbi)
(Reporting by Ziyi Tang and Engen Tham Editing by Louise Heavens and David Goodman)
((Ziyi.Tang@thomsonreuters.com;))
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