More important to humanity than fire

James Soutter

K2 Asset Management

The CEO of Google, Sundar Pichai, recently said that Artificial Intelligence (AI) is: "one of the most important things humanity is working on, it is more profound than electricity or fire". 

A big call perhaps, but there is no denying that it is engulfing our lives. Most are blissfully unaware of its silent influence, and even fewer are invested.

A new frontier of AI is rapidly developing in Asia. Two of China’s most successful companies, Alibaba and Tencent are leaders in AI, spurring future GDP forecasts for Asia.

For Chinese insurance company Ping-An, its focus on AI is already yielding benefits:

  • Policy Pricing: The "Internet of Things" sensors capture data, allowing safer drivers, and those with healthier lifestyles, access to lower insurance premiums.
  • Tailored Policies:  AI chatbots analyse customers’ geographic and social data for personalised interactions.
  • Claims Settlement: Online interfaces and virtual claims adjusters improve efficiency, while decreasing the likelihood of fraud.

Undemanding valuation for an impressive portfolio

Ping-An’s AI portfolio includes; Good Doctor (listed, market cap US$6.5bn) and Lufax, China’s biggest peer-to-peer lender; both unicorns, companies valued over US$1 billion.

Trading on 10x P/E with 20% forecast EPS growth, Ping-An is an inexpensive way to access the cutting edge of AI. The K2 international funds are holders of Ping-An.

James Soutter
James Soutter
Joint Chief Investment Officer
K2 Asset Management

James is the joint-CIO for the K2 investment funds. In conjunction with his responsibilities as joint-CIO, James dedicates his time managing an allocation of the Asian and international equity strategies.

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