Author | Xie Mei bath
Edit | Fu Ying
Source | Unicorn Finance
In the last month of 2014, on the Jiaodong Peninsula stretching out to the ocean, Huahai Property Insurance Co., Ltd. (hereinafter referred to as Huahai Property Insurance) officially opened with a "golden spoon".
At the beginning of its establishment, Huahai Property Insurance Co., Ltd. held the characteristic halo of marine insurance and Internet insurance, and its founding shareholders included 10 companies, including Laizhou Chengyuan Salinization Co., Ltd. (hereinafter referred to as "Laizhou Chengyuan"), Longkou Jiayuan Dongsheng Thermal Power Co., Ltd. (hereinafter referred to as "Longkou Jiayuan"), Xintai Hongtai Coal Co., Ltd. (hereinafter referred to as "Hongtai Coal"), with a registered capital of 850 million yuan. By September 2016, the registered capital of Huahai Property Insurance had increased to 1.2 billion yuan.
As of the fourth quarter of 2023, Huahai Property & Casualty Insurance has total assets of 3.264 billion yuan, a cumulative insurance liability of 10.82 trillion yuan, insurance compensation of 8.508 billion yuan, and various taxes of 4.364 billion yuan.
In 2023, Huahai Property & Casualty Insurance achieved a premium income of RMB2.158 billion and a net profit of RMB14.5061 million, with a comprehensive cost ratio of 97.76%, an improvement of 1.94 percentage points over the previous year.
However, Huahai P&C Insurance's profitability has not been optimistic. From 2015 to 2017, Huahai Property Insurance lost about 450 million yuan, and although it remained profitable from 2018 to 2023, it was far from making up for the previous losses.
In addition to performance, Huahai Property Insurance also faced the dilemma of equity disputes and lack of corporate governance. In 2019, after the qualifications of the former general manager Jiang Nan were revoked, the position of general manager of Huahai Property Insurance has been vacant.
Until recently, Huahai Property Insurance announced that the company hired Liu Ziliang as the general manager of the company on March 20, 2024. The deputy general manager of the "post-80s" generation has become a regular, does Huahai Property Insurance have a chance to break out of the encirclement?
1
Closing the vacancy of the last 5 years,
The new general manager of the "post-80s" generation is incubated internally
In July 2019, Huahai Property Insurance was fined 1.1 million yuan for illegal acts such as falsely listing expenses in the auto insurance business, hiring unqualified personnel as company executives, and illegally selling investment insurance products.
At the same time, Huahai Property Insurance was ordered to stop business and accept new commercial auto insurance business from its headquarters for three months, eight senior executives, including the chairman and general manager, were warned and fined 770,000 yuan, and Jiang Nan, the general manager at the time, was disqualified. Since then, the position of general manager of Huahai Property Insurance has been vacant.
Source: Canned Gallery
Until recently, Huahai Property Insurance announced that the company hired Liu Ziliang as the general manager of the company on March 20, 2024. Liu Ziliang is a post-80s generation born in 1984 with a master's degree.
In February 2016, Liu Ziliang was approved as the general manager of Huahai P&C Insurance Central Branch, in November 2018, Shandong Banking and Insurance Regulatory Bureau approved his qualification as general manager of Huahai P&C Insurance Provincial Branch, and since March 2020, Liu Ziliang has served as the deputy general manager of Huahai P&C Insurance, and until the end of 2023, Liu Ziliang has also served as the deputy secretary of the Party Committee and chief investment officer of Huahai P&C Insurance.
In addition, in recent years, Liu Ziliang has also served as the director of the office of the board of directors and the board of supervisors of Huahai Property & Casualty Insurance, the general manager of the asset management center, and the interim head of operation and management.
Last year, Huahai Property Insurance was warned and fined 10,000 yuan for the interim person in charge of overdue duties. Specifically, on July 7, 2021, Huahai Property Insurance reported to the Shandong Banking and Insurance Regulatory Bureau the "Report on Extending the Responsibility Period of the Temporary Person in Charge of Operation and Management of Liu's Company", clarifying that the deadline for the term of office of the interim person in charge of Liu Moumou is October 18, 2021, but from October 19, 2021 to December 14, 2021, Liu Moumou actually still performed his duties as the interim person in charge of operation and management.
Source: Official website of the State Administration of Financial Supervision and Administration
It is worth noting that before Liu Ziliang, Huahai Property Insurance had entrusted Shi Xiang, who was also a "post-80s", with important responsibilities.
In May 2016, Shi Xiang's qualifications to serve as the assistant general manager of Huahai P&C Insurance were approved, in January 2018, Shi Xiang was officially appointed as the chief actuary of Huahai P&C Insurance, and in April 2020, Shi Xiang's qualifications to serve as the deputy general manager (in charge of work) of Huahai P&C Insurance were approved.
However, Shi Xiang has not taken root in Huahai Property Insurance, and has now become the general manager of another Shandong insurance company, Zhonglu Property Insurance Co., Ltd., which was officially approved in December last year.
At present, the senior management team of Huahai Property Insurance is composed of General Manager Liu Ziliang, Deputy General Manager Feng Mingchang, Chief Assistant and Head of Compliance and Secretary of the Board of Directors Peng Xingang, Audit Manager Fang Shenyan and Chief Actuary Luo Baiwen.
2
The premium income was maintained at 2 billion,
Why is it difficult to make a profit with high government subsidies?
Now that he has officially taken the position to lead Huahai Property Insurance, the young Liu Ziliang has a heavy burden on his shoulders.
In terms of business, as the first marine professional property insurance company in China, Huahai Property Insurance has not carried forward its marine characteristics.
According to the annual report of Huahai Property Insurance, in 2015 and 2016, ship insurance ranked fourth among the top five types of insurance of Huahai Property Insurance, with premium income of 15.15 million yuan and 18.71 million yuan respectively, and underwriting losses of 3.97 million yuan and 8.84 million yuan respectively. Since then, ship insurance has been withdrawn from the top five types of insurance in terms of premium income of Huahai Property Insurance.
The auto insurance business, which has always been the largest insurance type of Huahai Property Insurance, has been on a "roller coaster". The annual report shows that from 2015 to 2021, the company's auto insurance business only made a profit of 14.1381 million yuan in 2019, with a cumulative loss of about 625 million yuan. However, in 2022, Huahai Property Insurance's auto insurance business bucked the trend and made a profit of 136 million yuan, a record high.
In 2023, the comprehensive cost ratio of Huahai P&C Insurance will be 97.76%, an improvement of 1.94 percentage points from the previous year. By the end of 2023, Huahai Property & Casualty Insurance has assumed a total of 10.82 trillion yuan of insurance liability, 8.508 billion yuan of insurance compensation, and 4.364 billion yuan of various taxes.
In addition, Huahai Property & Casualty Insurance has maintained an average premium of more than 2 billion yuan in the past six years, and has achieved operating profitability. In 2023, Huahai Property Insurance will achieve a premium income of 2.158 billion yuan and a net profit of 14.5061 million yuan.
However, Huahai Property Insurance has made a cumulative profit of about 73.41 million yuan in the past six years, which is still far from making up for the loss of 450 million yuan from 2015 to 2017.
Source: Wind data
It is worth mentioning that the government subsidies received by Huahai Property Insurance also far exceeded its net profit since its establishment.
Specifically, from 2017 to 2019, Huahai Property Insurance received government subsidies of 236 million yuan, 257 million yuan and 153 million yuan respectively, and then significantly reduced to 30.1717 million yuan, 13.3414 million yuan and 7.7251 million yuan from 2020 to 2022.
In recent years, Huahai Property Insurance has also incurred significant losses in its investment actions. In 2023, Huahai Property Insurance's investment return will drop to negative at -1.05%, down 2.25 percentage points year-on-year.
According to the announcement issued by Huahai Property Insurance in November last year, the company's Hezhong-Peking University Resources Qingdao Commercial Real Estate Debt Investment Plan and Chang'anning-Dalian Xinghaiwan Collective Capital Trust Plan both failed to repay the company's principal on time, constituting a breach of contract.
The above-mentioned real estate debt investment losses led to a decrease of 12.51 percentage points in the solvency adequacy ratio of Huahai Property Insurance, with an impairment provision of RMB 28 million at the end of 2021, and a loss on trust investment led to a decrease of 7.62 percentage points in the company's solvency adequacy ratio, with an impairment provision of RMB 35 million at the end of 2021.
In addition to performance, Huahai Property Insurance frequently stepped on the regulatory red line and faced a governance dilemma.
Source: Canned Gallery
In 2023, Huahai Property Insurance will frequently collect fines. In March 2023, he was warned and fined 800,000 yuan for compiling false financial and business information, and the temporary person in charge was overdue for performing his duties, etc., and 3 relevant responsible persons were warned and fined a total of 220,000 yuan.
In the same year, Huahai P&C Insurance Shandong Branch was warned and fined 500,000 yuan and fined 100,000 yuan to the relevant responsible person for compiling false business and financial information, and Qingdao Branch of Huahai Property Insurance was warned and fined 380,000 yuan and 50,000 yuan for violating internal regulations for falsely listing business and management fees, falsely listing intermediary arbitrage fees for direct sales business, and violating internal regulations to underwrite compulsory traffic insurance business.
On February 22 this year, the Henan branch of Huahai Property Insurance Co., Ltd. was warned and fined 600,000 yuan for preparing or providing false reports, statements, documents and materials, and for failing to obtain senior management qualifications for the actual performance of duties, and warned two relevant responsible persons with a total fine of 340,000 yuan.
3
Behind the support of 11 shareholders,
The situation remains "volatile"
The main shareholders of Huahai Property Insurance are strong entities in the coastal areas and marine fields.
However, Huahai P&C's equity lineup is not very stable. According to the announcements disclosed on the official website of Huahai Property Insurance, since 2016, the company has made a total of 8 announcements on equity changes, but only two of them have been successfully implemented.
On October 26, 2016, Laizhou Chengyuan transferred 120 million shares of Huahai Property Insurance held by Yantai Chengtai Investment Co., Ltd. (hereinafter referred to as "Chengtai Investment").
On May 10, 2018, Nagqu Ruichang Coal Transportation and Marketing Co., Ltd. (hereinafter referred to as "Nagqu Ruichang") increased its capital to Huahai Property Insurance by 180 million shares as a new shareholder, with a shareholding ratio of 15%, becoming the largest shareholder.
Source: Canned Gallery
At the same time, Huahai Property Insurance received the "Decision on Revocation of Administrative License" issued by the former Insurance Regulatory Commission, and the company's original shareholders Qingdao Shenzhou Wanxiang Culture Communication Co., Ltd. and Qingdao Lebao Internet Technology Co., Ltd. concealed their affiliation and provided false materials in the 2016 capital increase application, and all the shares held by the two companies were registered and cancelled.
It is worth noting that one month before Naqu Ruichang became a shareholder of Huahai Property Insurance, Zhengzhou Zhongrui Industrial Group (hereinafter referred to as "Zhongrui Industrial") planned to increase its capital by 180 million shares at a price of 1 yuan per share, holding 15% of the shares. And Naqu Ruichang is a subsidiary of Zhongrui Industrial Ruimaotong (600180.HK). SH).
The most recent announcement of the equity change was issued in February 2023, and Longkou Jiayuan intends to transfer its 120 million shares to Yantai Ruituo Investment Co., Ltd. (hereinafter referred to as "Ruituo Investment").
Ruituo Investment was established in August 2012, the legal representative is Li Guangsi, and the registered capital is 50 million yuan. According to the Yangtze River Business Daily, Ruituo Investment has cooperated with Yantai Vanke Enterprise Co., Ltd. (hereinafter referred to as "Yantai Vanke") for 11 years, and the two parties jointly established Yantai Wantuo Real Estate Development Co., Ltd. in 2021. In April last year, Ruituo Investment sued Yantai Vanke for a dispute over liability for harming the interests of shareholders.
However, as of the end of the third quarter of 2023, the shareholder lineup of Huahai P&C Insurance has not changed, and the equity to be transferred by Longkou Jiayuan has been pledged.
Source: Huahai Property & Casualty Solvency Report
In addition, Qitaihe Lushan High-quality Coal Co., Ltd. (hereinafter referred to as "Lushan High-quality Coal") has failed to transfer 120 million shares of Huahai Property Insurance several times since 2017.
In September 2017, Beijing Starlink Mango Investment Holding Co., Ltd. intended to take over, in May 2019, Henan New Oriental Real Estate Co., Ltd. planned to be transferred, and in December 2021, Naqu Ruichang, as the largest shareholder of Huahai Property Insurance, planned to take over. In the end, it was all gone.
In the face of poor profitability and internal control and governance problems, the general manager of the "post-80s" generation took office, can Huahai Property Insurance be reborn?