PING An Insurance Group Co. of China Ltd., China’s largest insurer by market value, yesterday posted a forecast-beating 43 percent jump in annual net profit, boosted by strong growth in its life insurance business.

The firm navigated an intensifying crackdown on risk in the financial sector by leveraging its extensive network and diverse product range to post its highest profit since 2003.

Written premiums for life insurance rose 27 percent to 475.9 billion yuan, from 373.78 billion yuan, while profits from life and health insurance soared 44 percent, hitting 36.1 billion yuan.

Ping An made a net profit of 89.1 billion yuan (US$14.08 billion) in 2017, versus an average estimate of 75.5 billion yuan from 19 analysts polled.

But the insurer, along with its other domestic peers, face a tough year ahead as regulatory scrutiny on leveraged areas of business tightens amid an industry-wide crackdown on risk.

China said it will merge its banking and insurance regulators earlier this month in a long-awaited move to streamline and tighten oversight of the financial system in the world’s second-biggest economy.

China’s insurance firms saw their net operating cash flow slump 65 percent last year, a source said, underscoring the challenges facing the sector as it reels from a crackdown on sales of risky investment products. (SD-Agencies)