SHANGHAI/BEIJING – The third-quarter net loss of Peping An Insurance Group Co of China Ltd was 31.2%. This is due to a decline in premium income and losses on investments.

The net profit decreased to 23.6 Billion Yuan ($3.69 Billillion) over the 3 months ending September 30, compared to 34.4 Billion a year prior, as per company’s Wednesday exchange filing.

The company has suffered its worst quarterly loss since the beginning of 2020.

Ping An has seen its investment and insurance returns suffer due to weakness in China’s economy. It posted the slowest growth rate in one year during the third quarter, as power scarcity and concerns about property have taken a heavy toll.

Ping An’s confidence has fallen over the last year due to growing concern about Ping An’s investments in high-debted property developers. Many face liquidity problems as a result of Beijing crackdown on excessive borrowings within the sector.

Ping An stated in the filing that “The foundation of economic recovery must be further consolidated against the background of a complex international environment, sporadic COVID-19 epidemics in China and the effect of natural disasters such as floods.”

The report stated that the quarter-on quarter decline in household consumption had a negative impact on Ping An’s long-term protection business.

The yields from company’s portfolio of investment funds was also affected by capital market volatility, increasing impairment provisions and increased investment assets.

According to company filings, Ping An’s premium from life insurance declined by 3.5% in the first nine month to 364.5 billion Yuan. Meanwhile, property and casualty income dropped 9.2% to 191.3 billion yuan.

The shares in Hong Kong and Shanghai are both down 40% year to date, against a benchmark gain of 2.6% and loss of 6% during that same time.