Solvency Report of Insurance Enterprises: 25 Life Insurance Companies still Loss 15 Capital Urgent

category:Finance
 Solvency Report of Insurance Enterprises: 25 Life Insurance Companies still Loss 15 Capital Urgent


According to the second quarter solvency report of 69 life insurance companies and 71 property insurance companies, Huaxia Life and Qianhai Life exceeded 100 billion yuan in premium income in the first half of this year, surpassing Xinhua Insurance, which ranked sixth in premium income in 2018. In addition, in terms of net profit, there are still 25 life insurance companies and 29 property insurance companies with losses.

Life insurance position changes again

As for life insurance companies, premium income is better than last years, but the rank changes again. According to the disclosure of listed insurance companies, in the first half of this year, China Ping An, China Life Insurance, China Insurance, China Pacific Insurance and Xinhua Insurance realized the original premium income of 446.24 billion yuan, 378.2 billion yuan, 321.382 billion yuan, 207.25 billion yuan and 73.994 billion yuan respectively. Because some companies are comprehensive statistics, they can not reflect the ranking of life insurance business. But we can see the changes in the industry in the disclosure of unlisted insurance companies.

According to the reported solvency report for the second quarter, the premium income of Huaxia Life and Qianhai Life are all over 100 billion yuan, followed by Taikang Life, Fude Life and Tianan Life, with premium income of 56.8 billion yuan, 55 billion yuan and 39.6 billion yuan respectively. The original premium income of Xinhua Insurance in the first half of this year was 73.994 billion yuan, which means that the scale of life insurance premiums of Cathaysia and Qianhai has ranked ahead of Xinhua Insurance. In addition, the premiums of Tianan Life Insurance Company, ICBC AXA, China Post Life Insurance Company, Fude Life Insurance Company and Centennial Life Insurance Company all exceed 30 billion yuan.

In 2018, the top ten premium income of life insurance business is life stock, Ping An Life, Tai Bao Life, Huaxia Life, Taiping Life, Xinhua Insurance, Taikang Life, Life Insurance, Fude Life and Tianan Life. The original premium is 536.21 billion yuan, 446.88 billion yuan, 2013.44 billion yuan, 158.28 billion yuan, 123.66 billion yuan, respectively. 120 million yuan, 122.29 billion yuan, 117.36 billion yuan, 93.72 billion yuan, 71.73 billion yuan and 58.57 billion yuan.

In property insurance, the market concentration is still high. Data show that in the first half of the year, premium income of the old three property insurance companies reached 433.618 billion yuan, with an average growth rate of 12.9%, higher than the industry average. Among them, the premium income of PICC was 235.335 billion yuan, an increase of 1.492%; the premium income of Ping An property insurance was 130.466 billion yuan, an increase of 9.75%; the premium income of PICC property insurance was 68.598 billion yuan, an increase of 12.28%. The total market share of the three companies is 64.66%. In addition, the premium income of Huaan Property Insurance, National Life Property Insurance, China Property Insurance and Sunshine Property Insurance is over 10 billion yuan.

Loss of 25 life insurance companies

According to the disclosed solvency report for the second quarter, 25 life insurance companies handed in their loss report in the first half of the year. Happy Life, Hongkang Life, Tianan Life, Love Life, Merchants Ren and Life, Junlong Life, Hengqin Life, Fuxing Baodexin Life, HSBC Life occupied an important position in the loss list. Among them, Happy Life, Hongkang Life and Tianan Life lost more than 100 million yuan.

It is worth noting that at the end of 2018, Happy Life once handed in billions of loss report cards and aroused great concern in the market. For the first time in 2019, the company turned over losses, and for the second quarter, it fell into losses.

In early July this year, China Sinda Asset Management Co., Ltd. (hereinafter referred to as China Sinda) issued a notice that it intends to liquidate all its shares in Happy Life. On July 29, 2019, Joint Credit Assessment Co., Ltd. announced that the main long-term credit rating of Happy Life Insurance Co., Ltd. was reduced to AA+, and the credit rating of capital supplementary bonds (18 Happy Life) was reduced to AA in 2018.

While 25 life insurance companies are losing money, many insurance companies have released good news. Earlier, for example, several large listed insurance companies issued performance forecasts for the first half of the year: Xinhua Insurance Net Income Forecast increased by 80%, China Life Net Income Forecast increased by 115% to 135%, China Insurance Forecast increased by 40% to 60%. The profits of insurance companies have increased dramatically, thanks to the impact of non-recurrent profits and losses. Previously, the Ministry of Finance and the State Administration of Taxation issued the Announcement on the Policy of Pre-tax Deduction of Procedure Fees and Commission Expenditures of Insurance Enterprises, which resulted in the release of profits due to the substantial reduction of enterprise income tax payable by insurance enterprises in 2018. In addition, the increase of investment income benefiting from equity market is also beneficial to the growth of profits.

Taikang Life, Dongwu Life, Sunshine Life, Peoples Livelihood Insurance and Fude Life are among the leading insurance companies that have disclosed their performance in the second quarter. Taikang Life ranks first with 6.282 billion yuan in revenue, while other companies have net profits ranging from 1.3 billion yuan to 3.1 billion yuan.

As for property insurance, 29 of the disclosed insurance companies were in a loss state in the second quarter. Taikang Online ranked first with a loss of 249 million yuan. In addition, Sunshine Credit Insurance, Middle Road Insurance and Everest Property Insurance also had a loss of more than 100 million yuan. It is noteworthy that 42 property insurance companies were profitable in the second quarter, while only 35 of the 71 companies that reported solvency in the second quarter were profitable in the first quarter.

Whose solvency is urgent

In terms of solvency, new changes also took place in the second quarter of 2019. In addition to continuing the first two quarters of grade D rating of Changan Liability Insurance and China Life, Junkang Lifes rating was downgraded from B to C.

China Lifes rating situation is still not optimistic, renewed the previous quarters D rating, core solvency adequacy rate has declined again, to - 10425.91%. According to its reimbursement report, the company is facing such risks as insufficient solvency, insufficient liquidity and insufficient personnel. Changan Liability Insurance has also been rated D again. After stepping on the mine-net loan platform in 2018, the solvency continued to fall short of the standard. In the third quarter solvency report, Changan Liability Insurance said that the decline of the companys solvency was mainly affected by the guarantee insurance business. In May 2019, the company received the decision of the Banking and Insurance Regulatory Commission on supervision measures. On the basis of the supervision measures already taken, two additional supervision measures were added. One was to order the company to limit the salary levels of directors, supervisors and senior managers. The other was to order four provincial (municipal) branches of the company, namely, Shanghai, Shandong, Henan and Ningbo. The company stopped accepting new business of liability insurance.

Data show that some insurance companiessolvency is on the edge of the red line. The core solvency of Pearl River Life, Centennial Life and Qianhai Life are 77.85%, 84.6% and 68.82% respectively. In terms of comprehensive solvency, Fude Life, Hongkang Life, Kunlun Health Insurance, Zhongrong Life, Huaxia Health Insurance, Jianxin Life, Shanghai Life, Xintai Life, Qianhai Life, Tianan Life, Junkang Life, Changan Liability Insurance, China Coal Insurance and Bohai Insurance all have comprehensive solvency adequacy rates below 15. 0%. Pearl River Life was rated C in the last quarter and B in the current quarter, but the solvency adequacy rate declined compared with the previous quarter. The same is true of Centennial Life, which was previously rated category C for two consecutive quarters, and was not rated category B until this quarter. Centennial Life has successfully issued 2 billion yuan of bonds in March this year, and issued the announcement of stock right change on August 1 this year. Dalian City Construction Group Co., Ltd., Dalian Qianhaokun Real Estate Co., Ltd. and Dalian Cathay Pacific Real Estate Development Co., Ltd. have transferred 800 million shares, 200 million shares and 80 million shares of Centennial Life to the Olympic Garden respectively. Group Co., Ltd. At present, Aoyuan Group Co., Ltd. holds 1.08 billion shares of 100-year life expectancy, accounting for 13.86%. Source of this article: Responsible Editor of Economic Observation Network: Zhang Mei_NF2100

Data show that some insurance companiessolvency is on the edge of the red line. The core solvency of Pearl River Life, Centennial Life and Qianhai Life are 77.85%, 84.6% and 68.82% respectively. In terms of comprehensive solvency, Fude Life, Hongkang Life, Kunlun Health Insurance, Zhongrong Life, Huaxia Health Insurance, Jianxin Life, Shanghai Life, Xintai Life, Qianhai Life, Tianan Life, Junkang Life, Changan Liability Insurance, China Coal Insurance and Bohai Insurance all have comprehensive solvency adequacy rates below 15. 0%.

Pearl River Life was rated C in the last quarter and B in the current quarter, but the solvency adequacy rate declined compared with the previous quarter. The same is true of Centennial Life, which was previously rated category C for two consecutive quarters, and was not rated category B until this quarter. Centennial Life has successfully issued 2 billion yuan of bonds in March this year, and issued the announcement of stock right change on August 1 this year. Dalian City Construction Group Co., Ltd., Dalian Qianhaokun Real Estate Co., Ltd. and Dalian Cathay Pacific Real Estate Development Co., Ltd. have transferred 800 million shares, 200 million shares and 80 million shares of Centennial Life to the Olympic Garden respectively. Group Co., Ltd. At present, Aoyuan Group Co., Ltd. holds 1.08 billion shares of 100-year life expectancy, accounting for 13.86%.