On November 18, the official website of China Post Life insurance announced that after the resolution of the third board of directors of the company, from November 11, 2021, Li Xuejun was appointed as the interim head of the company, and Liu Wenjun, deputy general manager, will no longer preside over the work. It is understood that it is not surprising that the interim person in charge Li Xuejun will most likely become the new general manager of China Post Life.
Whether it is the introduction of AIA as a strategic investor or the open recruitment of general managers, it shows that the business ideas of China Post Life are undergoing subtle changes. As one of the most typical bank-based insurance companies in China, China Post Life has a unique network advantage and has maintained a rapid growth trend for a long time, but due to the insufficient business value ratio, transformation has become its most important development proposition at present.
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For the first time, China Post Life has introduced an external professional manager as the interim head
According to the data, Li Xuejun was born in 1970, bachelor degree in economics, senior economist, since 1997 has been working in Chinese, experience spanning a number of important departments, including education and training department, human resources department, market strategy department and Shanghai, Hunan and other branches.
Specifically, he has successively served as the deputy general manager of the Chinese Life Education and Training Department (presiding over the work), the assistant general manager of the Shanghai branch, the general manager of the human resources department, etc., in 2014, he was promoted to the general manager of the strategic marketing department of the head office, and in 2016, he went to the Hunan branch again to train and serve as the general manager.
After 20 years of Chinese life service, in April 2018, Li Xuejun left his job and joined the private Sunshine Insurance Group as a business director. However, this period of time was not long, and in November of the same year, he jumped to PICC Life Insurance as vice president - before he went to PICC Life Insurance, Miao Jianmin, the leader of his tenure at National Life Insurance, became the chairman of PICC Group in early 2018.
According to the disclosure of China Post Life, as early as September, Li Xuejun has been appointed deputy secretary of the party committee of China Post Life, and in November as the interim head of the company, it is not surprising that Li Xuejun will most likely become the new general manager of China Post Life.
At the end of 2020, Dang Junzhang, the former general manager of China Post Life, resigned, and subsequently, China Post Group issued the "Announcement on the Open Recruitment of General Manager of China Post Insurance" on its official website, which openly recruited the general manager of China Post Life for both inside and outside postal enterprises, which required that the internal personnel of the postal system need to serve as second-level deputy and above leadership personnel. The age of social recruitment personnel is generally not more than 50 years old, and especially excellent can be appropriately relaxed; with more than 8 years of financial work or more than 10 years of economic work experience. At the same time, it is necessary to meet the needs of serving as an insurance company executive for more than 2 years, and serving as a middle-level management position of an insurance company or a equivalent management position of a financial regulatory agency for more than 5 years.
Judging from the data, the successive chairmen and general managers of China Post Life are from the postal system, and there has been no introduction of external professional managers. After Feng Xinsheng and Liu Mingguang, Dang Xiurong took over the position of chairman, and Dang Xiurong served as the general manager of the company before becoming chairman, and the position was taken over by Dang Junzhang.
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Bancassurance is once again facing a period of strategic opportunities, can the more market-oriented China Post Life reach a higher level?
In recent years, the reform of state-owned enterprises has been deepening, and the news of mixed reform and war is often in the news, and China Post Life has also released a series of change signals, the most eye-catching of which is the introduction of AIA as an investor.
In April 2021, China Post Life announced a capital increase of 7.2 billion yuan and 24.99% of the shares on the Shanghai United Assets and Equity Exchange. However, unlike in the past, the capital increase of China Post Life for the first time will direct the capital increase plan to external investors of the postal department, and it is no longer funded by the shareholders of the postal department to replenish blood.
After 2 months, AIA issued an announcement that through its wholly-owned subsidiary AIA, it invested 12.033 billion yuan to subscribe for 24.99% of the invested equity of China Post Life, and the transaction was completed, and AIA became the second largest shareholder of China Post Life.
In addition to participating in the mixed reform, China Post Life changed the style of internal promotion of general managers in the past, turned to the public recruitment of general managers, and finally hired Li Xuejun, which also showed a different willingness to reform than before.
As an insurance company with unique channel advantages, China Post Life has maintained a high-speed development trend for a long time, established in August 2009, the premium has exceeded the 10 billion yuan mark in 2012, and the 20 billion yuan mark has exceeded the 20 billion yuan mark in 2014, after that, its premium scale has climbed all the way, from 2014 to 2016, the insurance business income is between 20 billion and 30 billion yuan; from 2017 to 2020, the insurance business income has reached 41.079 billion yuan and 57.663 billion yuan, respectively. 67.541 billion yuan, 81.996 billion yuan.
However, in 2021, the revenue growth rate of China Post Life Insurance business has slowed down significantly. According to the solvency report, the total insurance business income of 11 bank-affiliated insurance companies in the first three quarters was 262.193 billion yuan, a year-on-year growth rate of 10.63%, and China Post Life, Jianxin Life and ICBC AXA Insurance ranked in the top three, but from the perspective of growth rate, China Post Life only ranked 8th with 9.14%.
More importantly, due to the long-term focus on low-value business, the rapid growth of insurance business revenue has also accelerated the consumption of its capital. According to incomplete statistics, from 2012 to 2018, China Post Life carried out a total of 8 rounds of capital increases totaling 21 billion yuan, in addition to the capital increase, China Post Life also received a wholesale bank of 10 billion yuan of capital supplementary bonds at the end of 2020.
In the past two years, under the pressure of a series of systems, the bancassurance channel is undergoing a comprehensive turn, more emphasis on the development of value business, at the same time, with the personal insurance channel, the Internet channel encountered difficulties, the dominant position of the bancassurance channel has been further valued, in the face of historical opportunities and challenges, how to lead the more market-oriented China Post Life to the next level, is undoubtedly the most important task in front of Li Xuejun.
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