Author | Xie Mei bath
Edit| Fu Ying
Source | Unicorn Finance
After the collapse of the trillion-dollar "Tomorrow System", once known as "the head of the 28 major clans of China's private finance", its important assets were disposed of to repay debts. As a very important part of it, the four insurance licenses also have their own different fates.
On May 9, Shenergy Property & Casualty Insurance Co., Ltd. (hereinafter referred to as "Shenergy Property & Casualty") officially opened in Shanghai Lingang Center. Shenergy P&C Insurance was formed after the restructuring of Tianan P&C Insurance, a subsidiary of the original "Tomorrow Department", and it took only 8 months from preparation to opening.
On July 17, 2020, the former China Banking and Insurance Regulatory Commission (CBIRC) took over six financial institutions of the "Tomorrow Department" in accordance with the law, including four insurances: China Life Insurance, Yi'an Property Insurance, Tianan Property Insurance, and Tianan Life. Thereafter, the receivership period was extended for one year, until July 16, 2022.
After the end of the receivership period, China Life Insurance, Tianan Life Insurance and Tianan Property Insurance have completed the reorganization, and the reorganized Ruizhong Life Insurance Co., Ltd. (hereinafter referred to as "Ruizhong Life"), Zhonghui Life Insurance Co., Ltd. (hereinafter referred to as "Zhonghui Life") and Shenergy Property Insurance have all commenced.
Yi'an Property Insurance, which was once held by the "Tomorrow Department", was acquired by BYD (002594.SZ) and renamed Shenzhen BYD Property Insurance Co., Ltd. (hereinafter referred to as "BYD Property Insurance").
According to the official account "Di Fan Home", on May 13, BYD property insurance has been issued, and the official account is "BYD Auto Fan Base Camp", which can be directly reached through its WeChat background to the official website of BYD Auto. However, the main body of the "Di Fan Home" certification is the Liancheng County Di Fan Home Network Studio, and industrial and commercial information shows that it has been cancelled in October last year.
Backed by the new owner of "either rich or expensive", can the original "tomorrow" insurance company learn a lesson and rejuvenate itself?
1
With the help of state-owned assets, tens of billions of Shenergy property insurance set sail
Tianan Property Insurance is the fourth property insurance company in China, with more than 18,000 employees and nearly 10,000 salesmen.
In 2020, Tianan P&C Insurance faced an unprecedented financial crisis due to a substantial default on the maturity of assets such as trust products held by Tianan Property Insurance, coupled with the revaluation of equity investment funds held by the investment according to the market value of the pledged shares, resulting in huge losses.
In July of that year, Tianan Property Insurance, China Life Insurance, Tianan Life Insurance, and Yi'an Property Insurance, four "tomorrow system" insurance companies, were formally taken over by the China Banking and Insurance Regulatory Commission (CBIRC) for violating the provisions of the Insurance Law.
By January this year, Shenergy Property Insurance, which was formed by the restructuring of Tianan Property Insurance, completed the industrial and commercial registration procedures with a registered capital of 10 billion yuan. The first chairman of Shenergy P&C Insurance is Gong Dexiong, vice president of Shenergy Group and secretary of the Party Committee of Orient Securities, who has more than 30 years of management experience in the financial industry, resigned as vice president of Guotai Junan in April last year and became secretary of the Party Committee of Orient Securities in September.
Source: Canned Gallery
Sheng Yafeng, who once served as the head of the custody team of Tianan Property Insurance, has become the first general manager of Shenergy Property Insurance.
According to public information, Sheng Yafeng was born in July 1965, worked in China Pacific Insurance, served as the general manager of CPIC property insurance from July 2018 to March 2021, and then served as the head of the custody team of Tianan Property Insurance, and concurrently served as the director of the Greater Bay Area Development of CPIC Group. According to CPIC's 2023 annual report, Sheng Yafeng worked in the industry risk management custody team during the reporting period, and his salary was received from the custody fee.
From the perspective of shareholder structure, Shenergy P&C Insurance was jointly established by eight state-owned enterprises, including Shenergy Investment Management Co., Ltd. (hereinafter referred to as "Shenergy Investment"), Shanghai International Group Co., Ltd. (hereinafter referred to as "Shanghai International Group"), Shanghai Lingang Yuanjin Investment Co., Ltd., and Taizhou State-owned Assets Investment Group Co., Ltd.
Shenergy (Group) Co., Ltd. (hereinafter referred to as "Shenergy Group") through Shenergy Investment, Shenergy Co., Ltd. (600642. SH), which holds a total of 50% equity of Shenergy P&C Insurance and becomes the actual controller of Shenergy P&C Insurance.
Shenergy Group is involved in the fields of electricity, gas, finance, and strategic emerging businesses, and has been ranked among the top 500 Chinese enterprises for 22 consecutive years. By the end of 2022, the group had nearly 300 wholly-owned and holding enterprises and nearly 20,000 employees.
At present, Orient Securities (600958. SH and 3958.HK) is one of the core assets of Shenergy Group in the financial industry. As of the first quarter of 2024, Shenergy Group holds 30.29% of the shares of Orient Securities and is the largest shareholder.
Source: Wind data
In addition, Shenergy Group also holds a stake in China Pacific Insurance (601601. SH, 2601.HK) 14.05% of the shares, shares in Guotai Junan (601211. SH, 2611.HK), Haitong Securities (600837. SH, 6837.HK), China Everbright Bank (601818. SH, 6818.HK) and other companies.
Now Shenergy P&C Insurance has officially opened, further improving the layout of Shenergy Group's financial industry. It is worth mentioning that Shenergy Group is focusing on building new energy business, and based on the shareholder development strategy, Shenergy P&C Insurance is also focusing on green insurance.
Bai Wenxi, chairman of the China Enterprise Capital Alliance, believes that Shenergy's focus on green insurance is in line with the current national policy direction of promoting green finance and technology finance, and is expected to make a breakthrough in the field of green and technology insurance products. Relying on the institutional advantages and industrial characteristics of the Lingang New Area, Shenergy P&C Insurance has a large space for development in financial innovation and business development in the future.
Source: Canned Gallery
In addition to Shenergy Group, the strength of Shanghai International Group, which has a stake in Shenergy Property Insurance, should not be underestimated, with a registered capital of 30 billion yuan, and its main business is financial holding, investment and asset management, as well as state-owned capital investment and operation, accounting for more than 60% of the total state-owned equity of Shanghai's financial institutions, and is the largest shareholder of Shanghai Pudong Development Bank (600000.HK). SH), Guotai Junan, Shanghai Rural Commercial Bank, and one of the major shareholders of CPIC.
2
The "China Life Department" was dismissed from the helm of Ruizhong Life
Prior to the opening of Shenergy Property Insurance, on June 28, 2023, Zhonghui Life Insurance, which was formed after the restructuring of Tianan Life Insurance, was also approved for operation and was subject to the territorial supervision and management of the Beijing Banking and Insurance Regulatory Bureau.
Zhonghui Life Insurance has a registered capital of 33.2 billion yuan, of which Central Huijin Investment Co., Ltd. (hereinafter referred to as "Central Huijin Company") contributed 26.56 billion yuan, holding 80% of the shares; China Insurance Security Fund Co., Ltd. (hereinafter referred to as the "Insurance Security Fund") invested 6.64 billion yuan, holding 20% of the shares. After the establishment of Zhonghui Life, Central Huijin has gathered two life insurance licenses.
On the same day as Zhonghui Life Insurance, Ruizhong Life Insurance was also approved to open. It is worth mentioning that the registered capital of Ruizhong Life Insurance reached 56.5 billion yuan, becoming the first registered capital of China's life insurance industry, more than 20 billion yuan higher than Ping An Life, which ranked second.
China Life Insurance, the predecessor of Ruizhong Life Insurance, has always been the core financial asset of Tomorrow Group. As of the end of September 2023, China Life's cumulative total premiums were RMB229.26 billion, ranking third in the market. In 2019, before it was taken over, China Life's total assets reached 587.3 billion yuan, and it entered the world's top 500 for two consecutive years from 2019 to 2020.
Source: Canned Gallery
This also means that in order to take over China Life, the capital reserves need to be very sufficient. In 2017, Zhongtian Financial Group Co., Ltd. (hereinafter referred to as "Zhongtian Financial"), under the command of Luo Yuping (also known as "Luo Bancheng"), the former "richest man in Guizhou", wanted to "swallow" China Life Insurance and paid a deposit of 7 billion yuan.
The company's net profit in 2016 was less than 3 billion yuan, and the deposit of up to 7 billion yuan caused liquidity pressure on the company, and since then the performance has continued to decline, and the debt problem has been highlighted.
By 2020, China Life Insurance has also undergone takeover and restructuring. On June 30, 2023, as the stock price continued to be lower than 1 yuan, Zhongtian Financial was officially delisted. On May 9, Zhongtian Financial announced that the acquisition of the equity of Huaxia Life Insurance could not be achieved, and the company would face a significant risk of losing the deposit.
Today, China Life Insurance is taken over by Ruizhong Life Insurance, and its shareholder behind it, Kyushu Qihang (Beijing) Equity Investment Fund (Limited Partnership) (hereinafter referred to as "Kyushu Qihang Fund"), has invested 33.9 billion yuan, with a shareholding ratio of 60%; The Insurance Security Fund invested 22.6 billion yuan, holding 40% of the shares.
The Kyushu Qihang Fund is funded by 11 state-owned holding life insurance companies, of which Chinese Life has the highest proportion of investment, accounting for 33.33% of the total shares.
It is worth noting that Ruizhong Life Insurance has recently undergone important personnel changes. On May 6, Ruizhong Life announced that the company designated Vice President Yu Deben as the interim person in charge and acted as the president. According to the usual practice, after the resolution of the board of directors is passed and the State Administration of Financial Supervision is approved, Yu Deben may officially take over the position of president.
Yu Deben was born in the "China Life Department" and was appointed as the deputy general manager of Ruizhong Life Insurance on March 7, 2024. He served as the general manager of Chinese Life Jiangsu Branch and was also the head of Chinese Life Insurance (Overseas) Co., Ltd. (hereinafter referred to as "China Life Overseas").
However, according to a report by Caixin's "Financial News", on July 27, 2022, before China Life Overseas held a business analysis meeting for the first half of 2022, Yu Deben, the company's main person in charge, had been dismissed. According to industry insiders, the reason for the adjustment was that it was found to have violated the spirit of the central government's "eight regulations" during the inspection and had the behavior of buying Moutai with public funds.
Bai Wenxi said that the behavior of corporate executives is often closely related to the company's governance structure and corporate culture, and for Ruizhong Life, how to ensure the transparency and standardization of corporate governance, repair the public image that may be damaged by this, and establish a more stringent internal management and supervision mechanism are the problems it needs to face and solve.
Source: Canned Gallery
In addition to Yu Deben, Zhao Lijun, chairman of Ruizhong Life Insurance, Li Yingjian, deputy general manager, and Tian Jinchao, chief actuary, are all from the "China Life Department". Zhao Lijun served as the deputy general manager and financial director of Chinese Life, became the head of the trusteeship team of China Life Insurance in 2020, and later served as the first chairman of Ruizhong Life.
In 2023, Ruizhong Life Insurance will achieve a total premium of 269.1 billion yuan, a year-on-year increase of 6%, ranking third in the market. Original premium income was RMB194.7 billion, up 7% year-on-year, new premiums reached RMB154.4 billion, up 9% year-on-year, and renewal premiums were RMB114.6 billion, up 3% year-on-year. Whether the leadership team of the "China Life Department" can lead Ruizhong Life to a higher level still needs time to verify.
3
The fate is very different, and Yi'an Property Insurance has become BYD Property Insurance
As an Internet insurance company with the strategic layout of the "Tomorrow Department", Yi'an Property Insurance, although its scale is smaller than the previous three, its final fate is not bad.
In 2017, the "Tomorrow Department" shouted 10 billion yuan to transfer Yi'an Property Insurance, although it held a precious Internet insurance license, but it was worried that there was a debt black hole, and no one took over. Yi'an Property Insurance, which was once known as the four major Internet insurance companies along with Zhongan Insurance, Anxin Insurance, and Taikang Online, is in such an embarrassing situation, which is embarrassing.
However, Yi'an property insurance has come hard, and now it has been owned by BYD, the "first brother" of the new energy car company. In May 2023, BYD spent 3.6 billion yuan to acquire 1 billion shares of Yi'an Property Insurance, and Yi'an Property Insurance was renamed BYD Property Insurance.
In November of the same year, BYD's property insurance business scope added "motor vehicle insurance, including compulsory motor vehicle traffic accident liability insurance and motor vehicle commercial insurance".
Source: Canned Gallery
Recently, BYD's auto insurance business has made progress again. On May 6, the State Administration of Financial Supervision approved BYD Property Insurance to use the national unified compulsory traffic insurance terms, basic insurance rates and corresponding rate floating coefficients in Anhui, Jiangxi and other places.
In addition, according to the official account "Di Fan Home", on May 13, BYD Insurance has issued a policy, involving 24 models of Dolphin Glory Edition 420km Free Edition, and the current guide price of the model is 112,800 yuan. According to reports, this insurance from Weihai, Shandong, for the first time on the new Dolphin insurance, the current car premium totals 3,900 yuan, including 2,950 yuan for commercial insurance, 950 yuan for compulsory traffic insurance.
Two months ago, BYD filled the senior management vacancy and appointed Wang Yong as the company's general manager. Wang Yong has extensive experience in the motor insurance business, having previously served as the General Manager of the Vehicle Insurance Department, the General Manager of the Auto Insurance Operation Department, the General Manager of the E-commerce Department and the General Manager of the New Channel Business Department of China United Property & Casualty Insurance Co., Ltd. (hereinafter referred to as "China Property & Casualty").
Source: Canned Gallery
According to the 2023 auto insurance data, 64 property and casualty insurance companies operate auto insurance, with a total premium of 877.9 billion yuan, a positive increase of 5.6%, and the overall underwriting profit has been halved, and only 16 underwriting profits.
Bai Wenxi believes that as a leader in the new energy vehicle industry, BYD has a large number of vehicle and driving data, can provide users with one-stop services, and has a loyal consumer group, so it has certain advantages in entering the car insurance. At the same time, it also faces challenges, including lack of professionalism, high compliance costs, and shortcomings in risk pricing and actuarial science.
In addition, the particularity of the new energy vehicle insurance market, such as high insurance rate, high maintenance costs, high loss ratio, etc., is also a problem that BYD property insurance needs to focus on and solve.
BYD Property Insurance's solvency report for the first quarter of 2024 shows that the company's insurance business income was 1,100 yuan and its net profit was 12,424,700 yuan. In the third and fourth quarters of 2023, the company's overall risk rating was B.
Source: BYD Property Insurance Solvency Report
Compared with the annual insurance business income of -6,857.87 yuan and the loss of 19,915,100 yuan in 2023, BYD's property insurance performance has begun to improve.
In the past, the four insurance companies of the "Tomorrow Department" have been reopened one by one, which one are you more optimistic about the development? Let's talk in the comment section.