Research On The Motiation And Performance Of Ping An Insurance(group) Company Of China Financial Business Diversification

Academic circles have always paid attention to the motivation of enterprise diversification and its impact on enterprise development,but there is no unified conclusion on this research hotspot.Why enterprises are diversified and how diversification affects enterprise performance still have exploration value.From2003 to 2017,Ping An of China realized the coordination of comprehensive financial diversified businesses through the acquisition of banks,the acquisition of auto home,the establishment of financial technology companies and other measures.The group business led by banks provided the allocation of insurance funds,and obtained key traffic entrances and content factories in the automotive,medical and financial service ecosystems through Internet technology.At present,Ping An has three major businesses: insurance,banking and investment,At the same time,the Internet financial business is full of vitality.The core financial business and the Internet financial business work together to help Ping An become the leader in the domestic industry.This paper combs and summarizes the research results of diversification concept,motivation and performance through literature research method,analyzes the motivation and characteristics of Ping An’s diversified financial business development by using case study method,studies the performance of Ping An’s single financial business and the synergy of diversified business,and uses financial analysis method to compare and analyze the horizontal and vertical performance of Ping An,It also analyzes the short-term and long-term market performance of Ping An financial business diversification in China,so as to illustrate the performance impact of financial business diversification.In terms of financial performance,the insurance business is still at the core,the asset management business is developing steadily,the banking business is growing steadily,and the Internet financial business has broad prospects.At the same time,enterprise business synergy is increasing,which is reflected in the increase in the number of customers,the increase in the frequency of cross selling and the decrease in the rate of administrative expenses.Through the analysis of horizontal and vertical performance comparison,it is found that the development of diversified financial business has made Ping An China obtain a good market response,which has little effect on Ping An’s operating capacity.However,Ping An’s profitability has been greatly improved,its solvency is stable,and its growth ability is excellent.In general,the development of financial business diversification has a positive performance impact on Ping An.