Three Gorges Life Insurance, which has been in a hurry for 12 years, finally has a smooth road
On December 12, Three Gorges Life Insurance signed a capital increase, and two shareholders - Chongqing Yufu Capital and Chongqing Hi-Tech Group participated in the capital increase.
At the signing ceremony of the capital increase, Chongqing set the tone and qualitative on the importance of the capital increase and reorganization of Three Gorges Life: promoting the capital increase and reorganization of Three Gorges Life Insurance is an important measure to implement the spirit of the first financial work conference, and it is a new action of the municipal state-owned enterprises to serve Chongqing to build a western financial center.
It is worth noting that Chongqing State-owned Assets has put forward requirements for the management and governance of Three Gorges Life, and has clarified the company's future development goals: to optimize the management system and corporate governance structure, realize the normal operation of Three Gorges Life's business as soon as possible, expand the business scale, and cultivate local state-owned holding legal life insurance institutions and high-quality state-owned life insurance brands.
After the opening of the Three Gorges people, due to problems in equity and corporate governance, the premium income has declined year after year, the company has suffered serious losses, and there has also been a farce of the chairman asking for salary. As of the third quarter of this year, the comprehensive solvency did not meet the standard, and as one of the two companies with a risk rating of D, it has been closely focused by regulators.
The signing ceremony was attended by Zeng Jinghua, Director of Chongqing SASAC, Chen Lu, Deputy Director of Chongqing Financial Supervision Bureau, Zhang Bin, Deputy Director of Chongqing Liangjiang New Area Management Committee, and Liu Jiayi, Deputy Director of Chongqing SASAC. It can be seen that the importance attached to the capital increase and reorganization of Three Gorges Life Insurance also means that Three Gorges Life Insurance is very likely to break through the problem and embark on a new road.
Set the tone and qualitative, and the future goals of Three Gorges Life Insurance are clear
The process of capital increase and restructuring of Three Gorges Life Insurance has been accelerated.
On December 12, Three Gorges Life Insurance held a signing ceremony for the capital increase at the State-owned Assets Supervision and Administration Commission of Chongqing, and the two major shareholders - Chongqing Yufu Capital and Chongqing Hi-Tech Group participated in the capital increase, and the capital increase and restructuring of Three Gorges Life Insurance achieved phased results.
This also means that the shareholding structure of Three Gorges Life Insurance will undergo great changes, the control of Chongqing's state-owned assets will be further enhanced, and the private shareholding will be further diluted.
Shareholding structure table updated on the official website of Three Gorges Life on November 3, 2023) Three Gorges Life Insurance was established at the end of 2017 with a registered capital of 1 billion yuan, and is the only life insurance legal entity headquartered in Chongqing. At the end of the third quarter of this year, its core and comprehensive solvency were respectively. 56%, No.
The comprehensive risk rating results in the first and second quarters were both D, which is one of the insurance companies whose solvency does not meet the standard. 
According to Zeng Jinghua, Secretary of the Party Committee and Director of the Chongqing State-owned Assets Supervision and Administration Commission, the public tone is to cultivate local state-controlled life insurance institutions and high-quality state-owned life insurance brands. After the completion of the capital increase, on the one hand, the capital strength of CTG Life will be further enhanced, the equity structure will be optimized, and the governance issues will be further straightened out, laying the foundation for the company's next development and providing important support.
Zeng Jinghua said that Three Gorges Life Insurance is a municipal state-owned financial enterprise and an important part of Chongqing's state-owned assets, and it is necessary to continue to optimize its capital structure, enhance its capital strength, promote the high-quality development of Three Gorges Life, and better serve the construction of a modern new Chongqing.
Zeng Jinghua pointed out that promoting the capital increase and reorganization of Three Gorges Life Insurance is an important measure to implement the spirit of the first financial work conference, and it is a new action of municipal state-owned enterprises to serve Chongqing's construction of a western financial center. He also put forward four "musts", which include a specific elaboration of the current problems, solutions and future plans of Three Gorges Life.
It is necessary to continue to promote the implementation of capital increase and reorganization, optimize the management system and corporate governance structure, realize the normal operation of Three Gorges Life's business as soon as possible, expand the scale of business, and cultivate local state-controlled legal person life insurance institutions and high-quality state-owned life insurance brands.
It is necessary to highlight the characteristics of life insurance to form a core competitive advantage, intensively cultivate the main business, innovate and expand characteristic life insurance, better meet the diverse needs of the people, build a parallel system of ordinary life insurance and characteristic business, and create a core competitive advantage. To earnestly fulfill the responsibilities of investors, the strategic investors of municipal state-owned enterprises should be good long-term capital, patient capital and strategic capital, support and promote Three Gorges Life Insurance to become stronger, better and bigger in the insurance field, and provide professional and high-quality services market-oriented, so that the people can have more sense of security and gain. It is necessary to firmly establish the bottom-line thinking, always take risk prevention and control as the top priority, take party building as the guide, establish and improve the whole chain risk prevention and control system, standardize corporate governance, effectively improve the ability to prevent and resolve risks and hidden dangers, and resolutely adhere to the bottom line of no major risks and systemic risks.
To put it bluntly, shareholders should cooperate with the capital increase, and maintain the strategic patience of shareholders, and make Three Gorges Life Insurance's plan of "building a western financial center" bigger and stronger.
The reason why Zeng Jinghua is so clear about the tasks of shareholders and the company's future development goals is related to the company's long-standing complex problems.
6 years, and 6 years, and finally local state-owned assets holding
Three Gorges Life Insurance can be described as a bad fate, from the preparation to the opening has gone through 6 years, which is extremely rare in the industry, from the opening to the current restructuring is another 6 years. 12 spring and autumn have passed, nearly half of its equity is still in an abnormal state, and Three Gorges Life Insurance urgently needs to get out of the road of normal operation. For this reason, the local ** has also tried to introduce market-oriented shareholders, but they have all failed.
In the six years since the establishment of Three Gorges Life, shareholder problems and corporate governance problems have always existed, resulting in a continuous decline in the company's performance, consecutive years of losses, and a farce of the chairman asking for salary. As a state-owned shareholding company, its solvency is not up to standard, and it has become one of the two insurance companies with a risk rating of D, which has been the focus of regulators.
According to its solvency report, at the end of the third quarter of this year, the core and comprehensive solvency of the insurance company were respectively. 56%, down 931bp、7.57bp。Not only that, Three Gorges Life Insurance is the first this year.
The comprehensive risk rating results for the first and second quarters were both D.
According to the regulations, an insurance company must meet three major conditions at the same time to meet the solvency standard:
The core solvency adequacy ratio is not less than 50%;
The comprehensive solvency adequacy ratio shall not be less than 100%;
The overall risk rating is B or above.
Obviously, CTG's solvency is not up to standard, which also leads to certain restrictions on its business development.
In its solvency report, the company said that the main risks it is currently facing are solvency pressure and related strategic and capitalizable risks, and it is working hard to improve its solvency.
Three Gorges Life Solvency Report for the Third Quarter of 2023).
In order to solve its solvency problem, a series of measures have been taken since the beginning of this year, both regulators and the company.
Regulatory aspectsIn April this year, the official website of the former Chongqing Banking and Insurance Regulatory Bureau issued the "Reply Letter on the Handling of Recommendation No. 0899 of the First Session of the Sixth Municipal People's Congress".We will support CTG Life to introduce high-quality investors with corresponding qualifications, outstanding main business, good reputation, continuous capital increase ability, commitment to abide by the principle of prudential supervision, and willingness to inject core resources into Chongqing, so as to promote the optimization of shareholders' equity structure and achieve long-term stable operation of the company.
The maleDivisionOn May 30, 2023, CTG Life held the fourth extraordinary general meeting of shareholders in 2023, which deliberated and approved the "Plan for Preventing Solvency Deterioration" and the "Report on Liquidity Risk Monitoring and Emergency Plan", and formed relevant resolutions.
At present, the ultimate solution of Three Gorges Life Insurance is state-owned holding.
Prior to its opening, CTG Life went through a lengthy preparatory period. From the beginning of 2011 to the end of 2017, it took 6 years, which is rare in the history of insurance companies. In March 2016, the former China Insurance Regulatory Commission issued an approval for the establishment of Three Gorges Life Insurance, which disclosed the lineup of shareholders, the proposed "first and second leaders", and the one-year preparation period. 
However, it is worth noting that this is a discrepancy from the original list of shareholders of Three Gorges Life. According to public information reports, the original seven shareholders were Chongqing Yufu, Lifan, Chongqing Caixin Enterprise Group, Chongqing Jiahexing Real Estate, Chongqing Wanzhou State-owned Assets Company, Wanzhou Natural Gas and Wanzhou Water Company.
Later, due to the consideration of the regulatory authorities for shareholder qualification requirements in 2015, a number of initial shareholders withdrew halfway and became a lineup in the preparation and approval.
Although initially led by **, the company had problems with equity. Up to now, nearly half of the six existing shareholders of Three Gorges Life Insurance are in an abnormal state of being frozen and pledged.
Three Gorges Life Solvency Report for the Third Quarter of 2023).
On November 3 this year, the company's official website disclosed that its current shareholders include Chongqing Yufu Capital, Chongqing Hi-Tech Group, Macrolink Holdings, Jiangsu Tongcheng Investment, Chongqing Dima Industry, and Chongqing Zhongke Construction, six large enterprises, holding shares respectively.
However, among the six shareholders, the shares held by the three shareholders of Macrolink Holdings, Jiangsu Tongcheng Investment and Chongqing Zhongke Construction are all frozen, pledged or frozen, accounting for as much as 45%, nearly half.
Among them, Xinhualian Holdings, which holds 20% of the shares, is also a "mud bodhisattva crossing the river". In August 2022, Macrolink announced that creditors had applied to the court for bankruptcy reorganization of Macrolink, but on January 20 this year, the application was not supported by regulators.
According to public reports, the equity of Three Gorges Life Insurance was pledged or frozen, and it was likely to be an economic dispute involving shareholders. The higher the proportion of equity pledged or frozen, the greater the possibility of affecting the equity structure of the insurance company. The former chairman asked for salary, and the first and second leaders were vacant for a long time
In addition to solvency and equity issues, the personnel aspect of Three Gorges Life Insurance has also been unstable in recent years, and there has even been news that "senior executives have personally gone to the field to ask for salaries".
In July this year, the China Judgment Document Network disclosed a civil ruling on labor disputes, in which Li Jiming, the former chairman of Three Gorges Life, asked for more than 40 million yuan from the former owner. According to public information, Li Jiming is not only the first chairman of Three Gorges Life, but also the founder of Three Gorges Life from 0 to 1.
Li has Ming: Former chairman and founder of Three Gorges Life Insurance. He has worked in Bank of Communications, Pacific Insurance, Huatai Insurance and Yongan Insurance. Before entering the financial industry, he served as the deputy director of the News Development Center of China Economic Weekly of the People's Society, the deputy secretary-general of the People's Republic of China in Wanzhou District, Chongqing, and the head of the preparatory team of Three Gorges Life.
In 2010, Li put forward the proposal to prepare for the establishment of Three Gorges Life Insurance and was recommended as the leader of the preparatory team. In March 2016, with regulatory approval, he was proposed to be the chairman of the company and continued to be responsible for the preparatory work. At the end of 2017, Three Gorges Life Insurance was approved to be established, and Li Jiming served as the first chairman and legal representative.
Although Three Gorges Life announced as early as 2021 that Li Jiming no longer serves as its director, chairman, legal representative and other positions. But in the ruling,Li is still shown as the chairman of Three Gorges Life.
In April and June this year, two rulings published on the China Judgments Network disclosed the specific details of the incident. Li Weiming's appeal mainly includes two aspects, salary andIllegal termination of labor contracts.
In terms of salary,Li appealed, claiming that from the time of the preparatory group to the formal establishment of the organization to the effective operation, he had been providing labor for the Three Gorges Life Insurance Company, and had repeatedly claimed labor remuneration from the Three Gorges Life Insurance Company during his work, but the Three Gorges Life Insurance Company had not paid the full amount. It demanded that CTG Life pay it a total of about 42.21 million yuan in wages.
The huge amount of more than 40 million includes 3 expenses, which are:
The order was made to pay 32.09 million yuan of wages that were not paid in full during the preparatory period, and 646 yuan of unpaid performance wages were ordered to be paid from January 2018 to September 2021750,000 yuan ordered to pay wages for the period from October 1, 2021 to August 31, 2022 364830,000 yuan.
Among the huge salaries, the wages that were not paid in full during the preparation period accounted for the majority. In this regard, there are ** reports,Insurance executives who have participated in the establishment of the organization said that the amount of wages they recovered during the preparation period far exceeded the industry level.
According to the court's investigation, in January 2017, Li signed a labor contract with the preparatory team of Three Gorges Life Insurance for the period from January 1, 2017 to the date of completion of the preparatory work, with the formal establishment of the industrial and commercial registration of Three Gorges Life Insurance as the work task, and implemented the standard working hour system, with a monthly basic salary of 5230,000 yuan, bonus according to regular assessment.
On December 20, 2020, Li has signed a fixed-term labor contract with Three Gorges Life Insurance for the period from December 20, 2020 to December 19, 2023580,000 yuan.
Secondly, Li appealed, claiming that on September 30, 2021, CTG Life illegally terminated the labor contract without going through legal procedures, which violated his rights and interests, and demanded that CTG Life reinstate his job.
In response to this incident, the relevant person in charge of Three Gorges Life Insurance respondedThe change of Li Jiming's position is a normal change caused by the normal re-election of the board of directors of the company in accordance with regulatory regulations. After the term change, because Li Jiming no longer served as the director and chairman of the board of directors of the company, and the objective situation of the labor contract between the company and him changed significantly, the company negotiated with Li Zhengming in accordance with the "Labor Contract Law" and other relevant laws and regulations, terminated the labor contract with him in accordance with legal procedures, and provided compensation for Li Zhengming in accordance with the standards prescribed by law.
The indemnity mentioned herein refers to:On September 30, 2021, CTG Life terminated the labor contract with Li Jiming due to a major change in the objective circumstances at the time of the conclusion of the labor contract, and informed Li Jiming that he could receive economic compensation of 93,816 yuan.
The ruling does not specify what exactly is meant by "objective circumstances". So far, the labor dispute between CTG Life and Li has not yet been concluded.
Since Li Jiming terminated the labor contract, the position of chairman of Three Gorges Life Insurance has been vacant.
In August 2021, Three Gorges Life Insurance issued an announcement on the change of chairman and board of directors, which showed that according to the resolution of the company's second extraordinary general meeting of shareholders in 2021 and the first meeting of the second board of directors, Li Jiming will no longer serve as the chairman and director of the company, and Zhang Lumin will be the chairman of the company, but in the end he failed to make the trip. The announcement did not disclose the specific reason why Li Jiming is no longer the chairman.
According to public information, Zhang Lumin serves as a director of a number of affiliated companies of Yufu Capital. Yufu Capital holds 20% of the shares of Three Gorges Life Insurance and is the largest shareholder.
At the same time, a total of 4 directors Chen Meijin, Yang Jiaxue, Wang Zhonghe and Wang Guoliang stepped downAccording to the 2021 annual report, Lai and the four directors all left at the end of their term.
Source: Three Gorges Life Insurance 2021 Annual Report).
In terms of resume, Chen Meijin served as a senior executive in Chongqing Hi-Tech Group, which holds 20% of the shares of Three Gorges Life, and Wang Zhonghe was the vice president of Macrolink at the time.
On the same day, another announcement showed that Xu Yongwei, deputy general manager and chief investment officer of the company, was appointed as the interim head of the management and acted as the general manager.
It is worth noting that Zhang Lumin, the proposed chairman of the board, resigned from the proposed director of Three Gorges Life Insurance for personal reasons after about 4 months of appointment and before it was approved. According to the corporate governance regulations, if you resign as a director, you can no longer hold the position of chairman, which has also led to the vacancy of the chairmanship of CTG Life to this day.
Zhang Lumin's exit may have traces.
On November 26, 2021, Three Gorges Life held a cadre meeting to announce the decision of the Non-public Work Committee of the Wanzhou District Party Committee on Xiao Xihua as the Secretary of the Party Committee of Three Gorges Life. Zhang Lumin did not attend the meeting.
Both Zhang and Xiao serve as directors of Chongqing Yufu Capital Equity Investment**, which is part of the same parent company as Three Gorges Life Insurance's shareholder, Yufu Capital.
Xu Yongwei, on the other hand, ceased to be the interim head of the management from February 2022 and left in the first quarter of this year. This is the third interim person in charge after the vacancy of the post of general manager of Three Gorges Life Insurance.
Source: Three Gorges Life Solvency Report for the First Quarter of 2023).
Looking back a few years ago, since December 2018, after An Yimin, the first general manager of Three Gorges Life, voluntarily left after serving for half a year, the position of general manager of Three Gorges Life has been vacant for a long time.
During this period, the company designated Chairman Li Jiming as the interim person in charge of the company and acted as the general manager. In less than a year, he appointed Yu Zhihua, deputy general manager, to preside over the work and serve as the interim person in charge for 2 years, but in the end, he did not become a regular person.
GoIn April, the company was appointedWang Kai served as a director and vice chairman of the second board of directors, acting as the legal representative. At present, according to the official website of Three Gorges Life, the company does not have a chairman and general manager.
The high proportion of equity freezing, frequent changes in senior management, and the lack of generals have all had a huge impact on the company's operating performance.
Silver's performance has declined year after year, with a cumulative loss of 58.3 billion
The frequent changes in directors, supervisors and senior executives, as well as the long-term absence of the chairman and general manager, have caused the instability of CTG's operating performance in recent years.
Since its establishment at the end of 2017, Three Gorges Life Insurance is still some way from the law of "seven losses and eight profits" in the insurance industry. Up to now, the company has achieved a total of 356.9 billion yuan, with a cumulative loss of 5$8.3 billion.
Nearly 6 years after its establishment, CTG Life has not yet achieved profitability. In the first three quarters of this year, the company's net loss exceeded 100 million yuan, which has exceeded the annual loss amount of last year, and is the largest loss since its establishment. Overall, the company's loss has narrowed for two consecutive years since 2020, but it has further expanded last year and continued its loss trend this year.
Three Gorges Life's net assets have been declining year after year. By the end of the third quarter of this year, the company's net assets were only 23.4 billion yuan, a decrease of more than 100 million yuan from the beginning of this year, almost 1 4 in 2018. Up to now, the first fiscal year is the year with the highest amount of net assets of CTG Life, reaching 85.9 billion yuan, and then decreased year by year.
Also in the sharp decline was the company's insurance business revenue. In the first three quarters of this year, the income of Three Gorges Life Insurance business was only 35.7 billion yuan, the end of the year is approaching, after a rough calculation, this year's premium scale may not be as good as last year.
In the first year of its establishment, the income of Three Gorges Life Insurance business was only 01.1 billion yuan, but in the second year, there was a large **, the premium scale reached nearly 1 billion yuan, and the following year it exceeded 1 billion yuan. However, in 2021, its premium income was cut off, and it has continued to decline in recent years.
Its compensation expenses are in the opposite trend with insurance business income。According to the 2022 annual report, the compensation expenses of Three Gorges Life Insurance are as high as 10.4 billion yuan, down 8 percent from the previous year20%, accounting for 1860%, close to 1 5. 2021 is the fastest growth year for Three Gorges Life's claim expenses, reaching 23026%, which is 332 times.
In terms of fee difference, the company's handling fees and commissions are paid fromIt has continued to decline after reaching its peak in the year. In 2022, CTG Life's commission expenses will only be 03.8 billion yuan, down nearly 70% from the previous year.
The decrease in fee and commission expenses was due to the shrinking premium income of its channel. By combing the original premium income of each channel over the years, it is found that the personal ** channel of Three Gorges Life Insurance is weak, and the scale of the original premium realized by this channel is less than 0500 million yuan.
However, the scale of premiums that can be achieved by the main source of premium income, the bank** channel, is declining off a cliff. From 2018 to 2022, the channel achieved a premium of 00.2 billion yuan, 81.4 billion yuan, 70.5 billion yuan, 22.9 billion yuan, 1$8.9 billion.
The life span of the people of the Three Gorges is not smooth, and the road they have taken in the 12 years of preparation has not been smooth, and it has been a long time since the capital increase and reorganization were initiated. Many leaders of Chongqing Municipality and heads of municipal enterprises attended the signing ceremony, which shows the importance of the capital increase and reorganization of Three Gorges Life. It is also expected that Three Gorges Life Insurance will take this opportunity to break through the addiction and embark on a new road.