Wen | Ni Yuping, a weekly magazine of "Finance and Economics"
Edited | Sun Yue
Recently, Shanghai Aijian Group Co., Ltd. (hereinafter referred to as "Aijian Group") issued an announcement on the transfer of huagui life shares. According to the announcement, Aijian Group intends to transfer 100 million shares of Huagui Life held by Tibet KuaiAi Communications Co., Ltd., accounting for 10% of the total share capital, for 128 million yuan. After the completion of the transfer, it will hold 10% of the equity of Huagui Life, which is its fourth largest shareholder.
Huagui Life, which has undergone changes in shareholders, has just undergone the adjustment of the new regulations on Internet life insurance, a number of term life insurance products have been removed from the shelves or adjusted to the Exclusive Internet version, and a number of insurance products such as participating insurance, accident insurance and annuity insurance are also suspended.
It is worth noting that Huagui Life's official website is a national life insurance company, but driven by changes in the industry, its fewer branches and insufficient solvency indicators may restrict its future development.
The fourth largest shareholder has changed
(Source: Aijian Group Announcement)
The announcement pointed out that the transaction was carried out in the form of cash transfer, and the transfer price was 1.28 yuan per share, a total of 128 million yuan. The transaction does not need to be submitted to the company's general meeting of shareholders for consideration, and other shareholders with preferential transfer rights of the target company are still required to waive the right of pre-emption, and the approval of the China Banking and Insurance Regulatory Commission or other dispatch agencies is still required.
Aijian Group said that the transfer of part of the equity of Huagui Life is in line with the company's strategic positioning of finance as the main business, which can further enrich the company's financial business sector, supplement the company's financial business structure, and improve the financial business chain.
According to public information, Huagui Life is a national life insurance company founded in 2017. It was jointly funded by 11 units such as Moutai Distillery (Group), Huakang Group, Guizhou Gui'an Financial Investment and Guizhou Financial Holding Group.
In recent years, the shareholders of Huagui Life have been constantly adjusted. In August 2019, Guizhou Guimin Development and Investment Co., Ltd. transferred its 100 million shares of Huagui Life to Guizhou Financial Holding Group Co., Ltd. (hereinafter referred to as "Guizhou Financial Holdings") free of charge; in March 2021, Guizhou Guian Financial Investment Co., Ltd. transferred 110 million shares held by Guizhou Guizhou Financial Investment Co., Ltd. to Guizhou Financial Holdings without compensation, so that the shareholding ratio of Guizhou Financial Holdings increased to 21%, becoming the largest shareholder of Huagui Life. Moutai Group holds 20% of the shares, from the largest shareholder to the second largest shareholder.
There have also been changes in management. In January 2020, General Manager Liu Weiping resigned as general manager of the company for personal reasons, and Chairman Wang Zhenwu acted as the interim person in charge of the general manager' duties; 10 months later, Luo Zhenhua was appointed as general manager and obtained regulatory approval.
Lower solvency There is only one branch outside the province
In the early days of its establishment, Huagui Life quickly opened up the situation in the Internet channel with the help of term life insurance. According to the annual report, from 2017 to 2020, the life insurance premium income was 412 million yuan, 479 million yuan, 408 million yuan and 1.118 billion yuan. In the total premium income, it accounted for 97.4%, 74.1%, 37.4% and 55.5% respectively. As premium income grew, the proportion of life insurance business declined, but it still accounted for more than half in 2020. Participating insurance has also become an important type of insurance that drives premium income, with participating insurance premium income reaching 856 million yuan in 2020, accounting for 42.5%.
However, in October last year, the China Banking and Insurance Regulatory Commission (CBIRC) issued the Notice on Matters Related to Further Regulating the Internet Life Insurance Business of Insurance Institutions, which puts forward operational requirements for the Internet life insurance business operated by insurance companies, and those who do not meet the relevant conditions shall not carry out Internet life insurance business.
This new regulation has affected the development of small and medium-sized insurance companies to varying degrees. Huagui Life previously announced that from January 1, 2022, the company's Internet life insurance business scope was adjusted to: term life insurance, accident insurance, health insurance (except nursing care insurance). Its popular network of luxury barley term life insurance and other products were removed from the shelves before 2022, but then, the 2022 version of the luxury barley term life insurance has been launched again. According to the official website, there are currently 4 Internet-exclusive term life insurance products launched. The official website also shows that among the 23 products discontinued, it involves term life insurance, two-way insurance, serious illness insurance, medical insurance, accident insurance, annuity insurance and other insurance types.
It is worth noting that only one of the five branches of Huagui Life is established in Hebei Province, and the remaining four are branches in Guizhou Province. For products that need to be transferred to offline, the laying and support of branches is also indispensable.
Aijian Group also hinted in the announcement that the target of this transaction, Huagui Life, is a local insurance company, and its business strategy is positioned as an Internet platform insurance company with leading products and services, and the future development of its industry may produce a risk of being greatly affected by the macroeconomic situation at home and abroad, regulatory regulations and local policies.
In response to the product adjustment and business direction under the new Internet regulations, Caijing Tianxia Weekly contacted Huagui Life, but failed to get a reply.
In addition, the development of the business has also brought about a rapid consumption of capital. The solvency indicator of Huagui Life fell from 701% in the early days of its establishment to 181.77% in 2020. In this regard, Huagui Life said in its annual report that in 2020, its actual capital decreased by 97.3386 million yuan, and at the same time, due to the increase in the company's liability business and investment assets, as well as the adjustment of investment structure, the minimum capital increased by 71.3647 million yuan compared with 2019. In the third quarter of 2021, the solvency index of Huagui Life dropped to 150.06%.