On December 15, Capital State learned that recently, Dinghe Property & Casualty Issued an announcement that it intends to add three shareholders, China Yangtze River Power Co., Ltd. (hereinafter referred to as Yangtze River Power), Guangzhou Development Zone Investment Group Co., Ltd. (hereinafter referred to as Guangzhou Development Investment), and China Huadian Group Capital Holding Co., Ltd. (hereinafter referred to as China Huadian), with a total investment amount of 6.45 billion yuan. After the completion of the capital increase, the three new shareholders will hold 15%, 15% and 5% of the shares respectively.
It is reported that after the capital increase, Dinghe Property & Casualty Insurance will issue an additional 1.625 billion shares on the basis of the original 3.018 billion shares. Changjiang Power and Guangzhou Development investment will be ranked side by side to become the largest shareholder of Dinghe Property & Casualty Insurance. The shareholding ratio of the original largest shareholder, China Southern Power Grid, will be diluted from the past 20% to 13%, falling to the third place of shareholders.
For the purpose of capital increase, Dinghe Property & Casualty insurance said that it is to supplement capital and ensure high-quality sustainable development; strengthen the combination of industry and finance, expand business scale, develop energy ecosystem, electric vehicle ecosystem, etc.; and accelerate digital transformation, forging new development capabilities and management capabilities through technology empowerment.
It is understood that at the beginning of this year, at the beginning of this year, Dinghe Property & Casualty Disclosed the proposed capital increase project on the Shanghai Stock Exchange, limiting the total shareholding ratio of new shareholders to no more than 50%, but not setting the amount of capital increase.
At that time, the industry unanimously agreed that as an insurance company in the power system, Dinghe Property & Casualty Insurance was a very high-quality investment target. Wang Xiangnan, deputy director of the Insurance and Economic Development Research Center of the Chinese Academy of Social Sciences, once said: "Power insurance companies have more high-quality business from shareholders; the main shareholders have a good reputation and are convenient for external business; the company's capital requirements and short-term profit pressure is small, and it can focus on improving products and services." ”
At the same time, industry insiders have also analyzed that the existing shareholders of Dinghe Property & Casualty Insurance have the strength to directly increase capital, so the choice to introduce strategic investors should be its measures to promote mixed reform. Attracting high-quality social capital can enhance the vitality of enterprises and enhance market competitiveness.
According to the official website, Dinghe Property & Casualty Insurance was established in 2008 and is a national property insurance company controlled by China Southern Power Grid and related parties. Since its inception, Dinghe property and casualty insurance business has continued to grow, with insurance business revenue increasing from 702 million yuan in 2010 to 4.956 billion yuan in 2019, and the company's insurance business revenue in 2020 was 4.785 billion yuan, a slight decrease of 3.45%. In recent years, the company's profitability has continued to improve, achieving a net profit of 806 million yuan in 2020.
As of the end of the third quarter of 2021, the comprehensive and core solvency adequacy ratios of Dinghe Property & Casualty Insurance were both 263.07%, up 11.97 percentage points from the end of the previous quarter.
This article originated from Capital State
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