Following Ren Ruihong's promotion from the position of general manager to chairman in May 2023, the position of general manager of Jintai Property Insurance has been vacant for one year. Just while waiting for the general manager to be decided, other executives of Jintai Property Insurance left one after another.
On April 28, Jintai Property Insurance announced the solvency report for the first quarter of 2024, showing that in the first three months of 2024, three senior executives resigned, including Deputy General Manager Hu Ke, Deputy General Manager Xiong Yan, and Deputy General Manager and Secretary of the Board of Directors Wu Runlong, either due to the expiration of the suspension period or due to personal reasons.
For enterprises, talent is the foundation of all development. Jintai Property Insurance, which has lost three vice presidents in a row, is also trying to fill the gap. For example, in Jintai P&C's latest updated list of executives, a vice president, Zhu Xuefeng, has been in office since April, while the qualifications of Li Tao, the head of compliance, have also been approved in February.
It is worth mentioning that in addition to the personnel aspect, this local state-owned insurance company located in a corner of Shu is also seeking capital support. It is reported that Jintai Property Insurance issued a total of 1.279 billion shares to 8 investors in the form of stock directional issuance, raising nearly 2.098 billion yuan, which was announced in March this year.
While promoting capital increase and share expansion, it also has to deal with management changes, and this 13-year-old insurance company is experiencing uncertainties.
The president is not decided
The vice president has left
Since Ren Ruihong resigned as general manager in May 2023 and became the new chairman of Jintai Property Insurance, this position has been vacant for one year.
Jintai Property Insurance, which urgently needs to be replaced by the president, has left three vice presidents in the first quarter, which is rare in the insurance industry, and for Jintai Property Insurance, which is not in line with the original senior management team, such changes may add more variables to its development.
Specifically, from the perspective of the three vice presidents who resigned, one is a "post-80s" and two are "post-70s", some have been in office for less than a year, and some have served in Jintai Property Insurance for more than five years.
For example, Hu Ke has been with Jintai Property Insurance for less than a year. According to the data, Hu Ke, born in January 1986, is only 38 years old, he has served as the trust director of the innovation business department of SDIC Taikang Trust Co., Ltd., and entered the strategic customer department of China Taiping in June 2016, and has successively served as the manager of the first customer department, the first manager of the customer, and the director of the financial institution division.
In April 2023, Hu Ke began to participate in the relevant work of Jintai Property Insurance as the proposed deputy general manager of Jintai Property Insurance, and in June 2023, his qualification as deputy general manager of Jintai Property Insurance was approved. However, he has served in Jintai Property Insurance for less than a year, and resigned in January 2024 due to the expiration of the temporary period. During his tenure, Hu Ke mainly assisted in the management of group business, health insurance business and credit insurance business.
Look at the other two vice presidents who have left, Xiong Yan and Wu Runlong, both of whom have worked in Jintai Property Insurance for more than five years.
Xiong Yan, born in April 1970, has worked for Bank of China Wuhan Branch, Ping An Property & Casualty, and Ping An Group. From November 2005 to December 2017, he successively served as the information director and assistant to the president of Huaan Property Insurance, joined Jintai Property Insurance in September 2018, and served as the deputy general manager of Jintai Property Insurance in January 2019. Xiong Yan is mainly responsible for group business, health insurance business and credit insurance business.
Wu Runlong, born in July 1979, has worked for PICC Group, Orient Asset Management and China Insurance Group. From June 2015 to October 2018, he served as the executive deputy general manager (general manager level) of the credit insurance department of China Property & Casualty Insurance, joined Jintai Property & Casualty Insurance in November 2018, served as the deputy general manager of Jintai Property & Casualty Insurance from March 2019 to March 2024, and served as the secretary of the board of directors of Jintai P&C Insurance and the chief information officer in September 2019, during which he was responsible for corporate governance, administrative management, consumer rights protection and information management.
AT PRESENT, THERE ARE 5 SENIOR EXECUTIVES OF JINTAI PROPERTY INSURANCE, INCLUDING HE LIN, FULL-TIME DEPUTY SECRETARY OF THE PARTY COMMITTEE AND PERSON IN CHARGE OF AUDITING, SONG SHAOFU, DEPUTY GENERAL MANAGER (PRESIDING OVER THE WORK), ZHU XUEFENG, DEPUTY GENERAL MANAGER, YU TING, CHIEF ACTUARY AND FINANCIAL DIRECTOR, AND LI TAO, HEAD OF COMPLIANCE. At present, Song Shaofu is mainly responsible for personal business, agricultural insurance business, strategic planning, asset management, etc.
First Targeted Financing
2. Shareholders or translocation
In addition to personnel changes, another important thing for Jintai Property Insurance is to increase capital and shares.
In March this year, Jintai Property Insurance issued an announcement on the results of the solicitation of investors for the directional issuance of shares, and determined to implement capital increase and share expansion by means of directional issuance of shares. In this round of capital increase and share expansion, Jintai Property Insurance plans to issue an additional 1.279 billion shares, raising nearly 2.098 billion yuan, which is jointly funded by 8 investors, of which 3 are original shareholders and 5 are new shareholders.
The original shareholders include Chengdu Jiaozi Financial Holding Group Co., Ltd., Chengdu Environmental Investment Group Co., Ltd., and Chengdu Yimin Investment Group Co., Ltd., and the new investors are Chengdu Industrial Capital Holding Group Co., Ltd., Chengdu Xingcheng Investment Group Co., Ltd., Chengdu High-tech Investment Group Co., Ltd., Sichuan Jianzhou Airport Agricultural Investment and Development Group Co., Ltd., and Guang'an Jincai Investment and Financing (Group) Co., Ltd.
Jintai Property Insurance said that the proposed issue price of the shares is based on the actual situation of the capital market and the company, and is priced at a price not lower than the appraisal price filed by Chengdu Jiaozi Financial Holding Group, and the issue price per share is determined to be 1.64 yuan, and the original shareholders and intended investors are subscribed according to the principle of the same price of the same shares.
"A Smart Insurance" noted that Chengdu Jiaozi Financial Holding Group is the largest shareholder of Jintai Property Insurance, and after the capital increase, the equity of Jintai Property Insurance held by Chengdu Jiaozi Financial Holding Group remains unchanged, still 33%, ranking as the largest shareholder. However, Jintai P&C Insurance's second largest shareholder may be "translocated" from Chengdu Environmental Investment Group to Chengdu Industrial Capital Holding Group.
Specifically, in this capital increase and share expansion, Chengdu Environmental Investment Group will subscribe for 147.11 million newly issued shares of Jintai Property Insurance, plus the previous shares, the total proportion of shares held by Jintai Property Insurance remains unchanged at 11.5%. Chengdu Industrial Capital Holding Group subscribed for 288.29 million newly issued shares of Jintai Property Insurance, and will hold 12.12% of the equity of Jintai Property Insurance, ranking second as the largest shareholder, followed by Chengdu Environmental Investment Group, ranking third.
Jintai Property Insurance said that the three original shareholders all participated in the directional offering by exercising their preemptive subscription rights. Moreover, after the capital increase, the company's share capital scale and shareholder shareholding ratio will change, but it will not lead to changes in the company's control and management, will not change the company's current main business, and will not have a significant impact on the company's daily operations.
In addition, since its listing on the National Equities Exchange and Quotations (NEEQ) on December 15, 2016, Jintai Property Insurance has not carried out stock issuance financing. If the capital increase and share expansion are successful, it will also be the first time for Jintai Property Insurance.
However, it should be noted that in August 2023, Jintai Property Insurance disclosed the capital increase and share expansion project, and in December of that year, Jintai Property Insurance issued a stock directional prospectus, at that time, Jintai Property Insurance had planned to raise 2.624 billion yuan, but from a practical point of view, the amount of the capital increase has not yet reached the expected target.
Local state-owned assets have been increased
Indirect holding of more than 80%
If the capital increase is successful, the proportion of Jintai property insurance shares actually controlled by Chengdu SASAC will also increase from 77.27% to 80.47%, and the control will be further strengthened.
For the increase of Chengdu State-owned Assets Supervision and Administration Commission, the industry may have long expected. After all, as the first insurance company listed on the New Third Board in the central and western regions, the importance of Jintai property insurance is self-evident. In an equity transfer last year, Chengdu State-owned Assets Supervision and Administration Commission (SASAC) further increased its holdings in Jintai Property Insurance through its holding company.
In May 2023, the former second largest shareholder of Jintai Property Insurance, State Investment Capital Holdings Co., Ltd. (hereinafter referred to as "State Investment Capital"), listed and transferred its 20% equity interest in Jintai Insurance through the property rights exchange, with a reserve price of 353 million yuan. Subsequently, Jintai Property Insurance solicited joint interested parties, Chengdu Jiaozi Financial Holding Group and Chengdu Environmental Investment Group, to acquire 8.5% and 11.5% of the shares respectively.
May 25, 2023
Jintai Property Insurance is going to do "four major things" this year! The two shareholders plan to leave, why don't they play?
After the successful equity transfer, Chengdu Jiaozi Financial Holding Group's shareholding in Jintai Property Insurance changed from 24.5% to 33%, continuing to be the largest shareholder, while Chengdu Environmental Investment Group held 11.5% of the shares, ranking as the second largest shareholder of Jintai Property Insurance at that time.
It should be noted that the controlling shareholders of Chengdu Jiaozi Financial Holding Group and Chengdu Environmental Investment Group are both Chengdu State-owned Assets Supervision and Administration Commission. Prior to this, Chengdu SASAC indirectly controlled a total of 57.27% of the equity of Jintai Property Insurance, but after the two shareholders took over the 20% equity of Jintai Property Insurance held by the State Investment Capital, the equity of Jintai Property Insurance indirectly controlled by Chengdu SASAC at that time also became 77.27%.
Today, with the advancement of Jintai Property Insurance's capital increase and share expansion, Chengdu State-owned Assets Supervision and Administration Commission continues to increase its weight.
Determine the direction of the lifting capacity
We are committed to differentiated management
As a property insurance company located in Sichuan, Jintai Property Insurance has been highly valued by the local government since its establishment. From the rapid expansion at the beginning of the opening to the gradual nationwide, the growth of Jintai Property Insurance is obvious.
Deng Mingxiang, the former chairman of Jintai Property Insurance, once described the layout of Jintai Property Insurance in this way, that is, within two years, the branches and business tentacles will be extended to the whole province of Sichuan, and the third year will be the beginning of the pace of the layout of the whole country. From today's Jintai Property Insurance, it has set up more than 130 branches at all levels in 9 provinces and cities including Sichuan, Guizhou, Shaanxi, Chongqing, Gansu, Yunnan, Hubei, Henan and Hebei, and has achieved full coverage of institutions in cities and counties in Chengdu and cities and prefectures in Sichuan.
However, from a business perspective, Jintai Property Insurance, like other property insurance companies, has also mainly relied on auto insurance to grow. Due to the fierce competition in the auto insurance market, the survival of small and medium-sized insurance companies is more difficult, so Jintai Property Insurance proposes to vigorously develop the "four pillars" of agricultural insurance, credit guarantee insurance, liability insurance and health insurance while consolidating and upgrading traditional businesses such as auto insurance.
Jintai Property Insurance's latest performance report shows that the net profit in 2023 will be 73.58 million yuan, a year-on-year increase of 128%, deducting the fair value change profit and loss of available-for-sale financial assets, the total comprehensive income will be 44.56 million yuan, and this accounting item in the previous year was a loss. The top 5 commercial insurances in terms of original premium income this year were motor vehicle insurance (including compulsory traffic insurance), short-term health insurance, agricultural insurance, liability insurance, and credit guarantee insurance.
Of course, if you want to deepen the road of differentiation, it is indeed difficult to avoid the initial capital investment, which may also be one of the important reasons for Jintai Property Insurance to raise funds.
According to Jintai Property Insurance, small and medium-sized insurance companies urgently need to transform to non-auto insurance business, but compared with traditional auto insurance business, non-auto insurance specialty businesses such as agricultural insurance, liability insurance and credit guarantee insurance have higher requirements for insurance companies due to the higher average risk protection amount per unit.
"The company landed in the capital market late, and was subject to the limited financing channels in the early stage, and the company's capital scale was low. With the continuous expansion of the company's business scale and the deepening of the transformation of the characteristic business of non-auto insurance, the company's solvency adequacy ratio is facing great downward pressure, which has formed a certain obstacle to the rapid development of its own underwriting capacity, the winning rate of major projects and major business cooperation projects, and the underwriting capacity and profitability improvement of characteristic businesses such as agricultural insurance, liability insurance and credit guarantee insurance are limited, which cannot fully meet the needs of the company's characteristic operation and development. ”
Jintai Property Insurance said that all the funds raised in this offering will be used to replenish capital, which can better meet the company's future premium growth needs and support the company's future business development.
As for how to develop this year, Ren Ruihong, chairman of Jintai Property Insurance, said at the 2024 annual work meeting that there are seven main aspects, focusing on refinement, internal reform, innovation and development, organized sales and operations, modern governance capacity building, internal control and compliance construction, and party building.
These established directions are mainly to enhance the profitability of underwriting, enhance the vitality of development, enhance the driving force of development, enhance the ability of overall coordination, etc., and the premise of all this is to have an efficient and coordinated leadership team. From the end of the first quarter, several core departments such as Jintai Property Insurance, Health Insurance, and Credit Insurance have not yet formally determined the management candidates.