As of August 13, in addition to listed insurance companies, big insurance companies and other companies, 152 insurance companies have disclosed the solvency report for the second quarter of this year, and the latest regulatory risk ratings of insurance companies have also come out. According to the statistics of Securities Daily, there are 87 companies in category A, accounting for 57%; 62 companies in category B, accounting for 40.8%; 1 company in category C and 2 companies in category D.
According to the regulation, the risk rating is classified as C or D insurers that fail to meet the standards. From the perspective of two D-type companies, Changan Liability has suffered a decline in solvency due to its previous Thunder-struck P2P business, and its risk rating has been reduced to D. China Life Company has also suffered a sharp decline in solvency due to the slow replenishment of capital, and its risk rating has been D for many consecutive years.
A manager of a life insurance company told the Securities Daily that the lower risk rating of individual insurance companies is mostly related to the lower solvency, and capital increase is the most effective way to achieve solvency standards. However, it is not easy for some companies to increase their capital. On the one hand, after the shareholders want to increase their capital, according to the regulatory requirements for the upper limit of equity, the share ratio may not meet the target, so the issue of capital increase may be put on hold for a long time. On the other hand, if the shareholders increase their capital in the same proportion, some shareholders will not be able to contribute, or do not want to increase their capital. Phenomenon. In addition, some insurance companies will also have a lower risk rating when their solvency declines sharply after huge compensation.
Only two companies have a risk rating of D
The results of comprehensive risk rating can reflect the overall situation of insurance companies to withstand risks. According to Regulation Rule No. 10 of Insurance Company Solvency Regulation: Comprehensive Risk Rating (Classified Regulation), the CBRC comprehensively analyses and evaluates the related risks of insurance companies quarterly. According to the monitoring data of insurance company solvency adequacy rate, operational risk, strategic risk, reputation risk and liquidity risk, the CBRC will conduct a comprehensive analysis and evaluation of the related risks of insurance companies quarterly. Insurance companies are classified as A, B, C and D, and different supervision measures are implemented according to different classification. Among them, rating A companies are considered to have the lowest overall risk.
From the perspective of two D-type companies, the solvency report of Changan Liability Insurance mentions that the core solvency adequacy rate and the comprehensive solvency adequacy rate of the company in the fourth quarter of 2018 and the first quarter of 2019 are not up to the standard, and the capitalization risk evaluation gets 0 points, which results in the comprehensive risk rating of the company as D.
In fact, the insufficient solvency of Changan Liability Insurance is related to its mine-trampling P2P business. Recently, Dagong International Credit Assessment Co., Ltd. issued a follow-up rating information on Changan Liability Insurance Bonds. As of the end of March 2019, the balance of subrogation recoverable from the credit guarantee insurance business of Changan Liability Insurance was 1.226 billion yuan, a slight decrease of 0.91% compared with the end of 2018.
In view of the problem of insufficient stage solvency, Changan Liability Insurance also expresses that, according to the requirements of the second generation of solvency, the company inspects the deficiencies in risk management, improves risk control measures, and effectively guarantees the healthy and stable development of the company. In the aspect of risk management and control, the company continuously optimizes the process of risk management system, strengthens the management of assets and liabilities, standardizes the management of compensation personnel, clarifies the method of performance appraisal of the head office, and improves the management level of the company.
In addition, Chinas corporate life is also rated category D because of delayed capital increase. According to the solvency report released by China Insurance Association recently in the second quarter of this year, the comprehensive solvency adequacy rate and core solvency of China Life Insurance Company declined sharply again at the end of the second quarter of this year, from - 8468.51% at the end of the first quarter to - 10426%. After insufficient solvency, China Life had tried to increase capital, but the issue of capital increase has not yet been approved.
China Life said it had taken emergency measures such as management pay cuts and cuts in unnecessary expenditures to postpone risk exposure, and its daily operations were maintained by shareholder loans. According to the statistics of Securities Daily, China Life has borrowed more than 200 million yuan from Hongshang Group since 2017.
About 60% of Class A companies
Except for the three insurers which fail to meet the standards, most of them have been rated as A and B, accounting for 57% and 40.8% respectively.
Specifically, there are 34 life insurance companies with the latest risk rating of A, including Jiaobin Kanglian, Taikang Life, Guolian Life, ICBC Ansheng, Aixin Life, Jianxin Life, Merchants Xinnuo, etc. and 32 life insurance companies of B, including Dongwu Life, Junlong Life, Longevity Life, Huagui Life, Ruitai Life and Longevity. City Life and so on.
Forty-seven property insurance companies with the latest risk rating of A have been supervised, exceeding similar life insurance companies in number, including Taishan Property Insurance, Sumitomo Mitsui, Huatai Property Insurance, Bank of China Insurance, Zhongcheng Insurance, etc. and 29 B Property Insurance companies, including Libao Insurance, Chengtai Property Insurance, Cathay Pacific Property Insurance, Durban Property Insurance, Credit and Interest Insurance. And so on.
In addition, six of the seven reinsurance companies were rated category A and one reinsurance company was rated category B.
In June this year, China Banking and Insurance Regulatory Commission held a working meeting to disclose solvency data. At the end of the first quarter of 2019, the comprehensive solvency adequacy rates of property insurance companies, personal insurance companies and reinsurance companies were 271.8%, 238.3% and 335.7%, respectively. 104 Insurance companies were rated in the comprehensive risk rating. It was rated as A company, 70 as B company, 1 as C company and 2 as D company. By contrast, the proportion of category A, B and C companies at the end of the second quarter is basically the same as that at the end of the first quarter.
The CBRC pointed out that after a combination of measures and centralized governance, the transformation and development of the insurance industry has achieved positive results, the insurance guarantee function has been strengthened, and the risk of the insurance industry is generally controllable. At present, the external economic environment is generally tightening, and there is downward pressure on the domestic economy. The insurance industry should maintain its strength, prevent and control risks on the basis of stable growth, and constantly improve the quality and effectiveness of the insurance industry in serving the real economy.
Source: Liable Editor of Securities Daily: Yang Qian_NF4425