In the nearly 10 years since its establishment, the position of general manager of Pearl River Life Insurance Co., Ltd. (hereinafter referred to as Pearl River Life) has changed for the first time. According to China Securities News, Fu Anping, general manager of the risk management department of Chinese Insurance Group, may take over as president of Pearl River Life.
The new coach is about to take office, but there are many old problems.
In recent years, Pearl River Life has been in turmoil, and has been repeatedly punished by the Banking and Insurance Regulatory Commission and included in the negative watch list by United Credit Appraisal Co., Ltd. (hereinafter referred to as United Credit). In terms of solvency, Pearl River Life's comprehensive risk rating in the third quarter of 2021 was downgraded to "Class C", facing greater pressure on capital replenishment.
Fu Anping intends to assume the position of president
It is reported that Fu Anping has actually carried out work, and there have been meetings within Pearl River Life. Zhujiang Life revealed to China Securities News that at the meeting, Fu Anping pointed out his administrative program, which will increase the construction strength of the self-operated team, and independent agents are the key direction, which will change the model of Pearl River Life's relatively high dependence on bancassurance.
According to public information, Fu Anping was born in 1963 and was the first actuarial graduate student of Nankai University and the first actuary in China. He joined the insurance work in 1982 and successively served as the deputy director of the Insurance Department of the Chinese Bank, the director of the Life Insurance Division, the deputy director of the Life Insurance Supervision Department of the China Insurance Regulatory Commission, and the deputy director of the Beijing Insurance Regulatory Bureau. In 2015, he served as the general manager of PICC Life Insurance, and in 2021, he stepped down as the party secretary and president, and was appointed as the general manager of the risk management department of Chinese Insurance Group.
It is worth mentioning that this is the first time that the president has been changed since the establishment of Pearl River Life, and Hu Guoping has served as the president of Pearl River Life for nearly ten years.
Hu Guoping, 62, has been in the insurance industry since 1995 and has nearly three decades of experience in the insurance industry. Hu Guoping worked at Ping An Life from 1995 to 2005, successively serving as assistant general manager of Ping An Life Nanjing Branch, deputy general manager of Shanghai Branch and general manager of Guangdong Branch. From 2005 to 2011, he worked at United Life, Guohua Life and Xincheng Life, successively serving as deputy general manager of United Life, executive director and executive deputy general manager of Guohua Life, deputy general manager and chief marketing business officer of Xincheng Life.
"Stepping on the Thunder" real estate,
It is placed on the negative watch list by Joint Credit
Pearl River Life was established in September 2012 and is headquartered in Guangzhou. Pearl River Life, which is keen on aggressive real estate investment, has frequent problems in recent years.
On March 31 this year, the official website of United Credit Released pearl river life quarterly tracking rating announcement. According to its disclosed report, in terms of investment business, the scale of Pearl River Life's real estate investment and investment assets such as funds and trust plans involving the real estate industry is relatively large, and some trust plans related to the real estate industry are overdue, and there is a certain risk exposure.
According to the rating announcement, through a comprehensive risk investigation, Pearl River Life found that in the fourth quarter of 2021, it was found that a real estate industry project invested by the equity fund was overdue, with a scale of 350 million yuan. In terms of solvency, Pearl River Life's solvency adequacy index has dropped to a level close to the regulatory red line, and the comprehensive risk rating has been downgraded, facing greater pressure on capital replenishment.
Based on the above, Joint Credit determined that the long-term credit rating of the main body of Pearl River Life was AA-, "19 Pearl River Life 01", "19 Pearl River Life 02", "19 Pearl River Life 03" and "20 Pearl River Life 01" credit rating was A+, which was included in the negative watch list.
The risks of Pearl River Life's real estate investment have long been hinted at.
In March 2021, the China Banking and Insurance Regulatory Commission imposed administrative penalties on Pearl River Life for the existence of three issues in which the financing loan of the project subsidiary exceeded the regulatory ratio, the insurance funds were used to pay the project auction deposit in violation of the law, and the related parties occupied the insurance funds for a long time, and fined them a total of 900,000 yuan. The company's general manager, deputy general manager, board secretary and financial director and general manager of the real estate investment department and other senior executives as relevant responsible persons, a total of 480,000 yuan was fined.
Earlier, in November 2019, Pearl River Life received a decision on administrative regulatory measures issued by the China Banking and Insurance Regulatory Commission. At the end of the second quarter of 2019, the company's real estate assets accounted for 30.72% of the total assets at the end of the previous quarter, violating the relevant provisions of the Notice on Strengthening and Improving the Supervision of the Proportion of Insurance Funds Utilized.
solvency is not up to standard,
Facing greater pressure on capital replenishment
According to the official website of Pearl River Life, the company has a registered capital of 6.7 billion yuan, which is jointly invested by 7 shareholders, including Guangdong Zhujiang Investment Holding Group Co., Ltd., Guangzhou Financial Holding Group Co., Ltd., Guangdong Hanjian Investment Co., Ltd., Guangdong New South Group Co., Ltd., Hengyang Hechuang Real Estate Development Co., Ltd., Guangdong Zhuguang Group Co., Ltd. and Guangdong Yuecai Trust Co., Ltd.
It is worth noting that 7 of its current shareholders are engaged in or invested in the real estate industry, and the business business of its subsidiaries is related to real estate.
According to the annual report data, the income of Pearl River Life Insurance business has begun to shrink for many years since it peaked at 15.1 billion yuan in 2016. In 2019, the insurance business revenue fell from 4.216 billion yuan in 2018 to 3.335 billion yuan, a year-on-year decrease of 21%, and the market share also fell from 0.7% in 2016 to 0.11%. Until 2020, the insurance business revenue was 7.273 billion yuan, up 118% year-on-year. In 2021, the original insurance premium income was 13.092 billion yuan, an increase of 79.60% over the previous year, and the market share was 0.39%.
(Picture note: Insurance company high ginseng based on public data)
In terms of net profit, Pearl River Life achieved profitability in the third year after its establishment. Pearl River Life turned a profit in 2015, and although it was not stable, it has been profitable for the next six years. From 2015 to 2020, Pearl River Life achieved net profits of RMB0.42 billion, RMB538 million, RMB287 million, RMB103 million, RMB374 million and RMB343 million, respectively. The loss in 2021 is 0.7 billion yuan.
(Picture note: Insurance company high ginseng based on public data)
In terms of solvency, at the end of 2021, the capital adequacy ratio indicator of Pearl River Life has dropped significantly from the end of the previous year, facing greater pressure on capital replenishment. Its core solvency adequacy ratio is 52.02% and its comprehensive solvency adequacy ratio is 104.04%. Affected by the decline in solvency, Pearl River Life's comprehensive risk rating in the third quarter of 2021 was downgraded to "Class C", which is an insurance company that does not meet the solvency standards according to the "Regulations on the Administration of Solvency of Insurance Companies".
In the rating report, United Credit clearly pointed out that the scale of Pearl River Life's real estate-related investment is relatively large, the scale of overdue investment assets is relatively high and there is a gap in the impairment provision, and the relevant risks need to be paid attention to; As the solvency adequacy index fell to a level close to the regulatory red line, the comprehensive risk rating was downgraded, facing greater pressure on capital replenishment.
This article originated from the insurance company Gao Ginseng