Last year, Great Wall Life Insurance business revenue was 2303.4 billion yuan, a year-on-year increase of 5508%, but the net profit fell by 99 year-on-year66%
Punctuation financial researcher Huang Fengqing.
With the disclosure of the solvency report for the fourth quarter of 2023, more and more insurers have revealed their general operating conditions in 2023. Profits, losses, and re-profits, Great Wall Life Insurance Co., Ltd. *** hereinafter referred to as Great Wall Life) The performance of the four quarters last year can be described as twists and turns, although the fourth quarter turned the tide and finally achieved a full-year profit, but the scale of profit does not seem to be worth mentioning compared with 2022.
Great Wall Life's solvency report for the fourth quarter of 2023 showed that the company's insurance business revenue was 230 last year3.4 billion yuan, a year-on-year increase of 5508%, but the net profit fell by 99 year-on-year66%。At the same time, the company's core solvency adequacy ratio and comprehensive solvency adequacy ratio at the end of the fourth quarter of 2023 were lower than the industry level.
In addition to operating performance and solvency, punctuation financial researchers noticed that many branches of Great Wall Life Insurance will receive fines in 2023. Among them, in December alone, two branches and related responsible persons were subject to administrative penalties.
In addition, Great Wall Life Insurance previously raised the bank of Wuxi (600908SH), which has also attracted considerable attention from the market.
What are the main factors affecting the sharp decline in net profit in 2023? Why do I get fines repeatedly? How to alleviate the solvency pressure in the future? Is there any plan to continue to list companies? In response to issues such as performance, administrative penalties, solvency, etc., punctuation financial researchers sent a communication letter to Great Wall Life, but have not received a reply as of press time.
Net profit fell sharply
According to public information, Great Wall Life Insurance was established on September 20, 2005, and has always adhered to the principle of steady development since its establishment, emphasizing the balanced development of "premium scale, value contribution and profit growth".
However, judging from the situation in the past two years, it is not easy to maintain profit growth.
Great Wall Life's 2022 annual information disclosure report shows that the company's net profit (non-consolidated) in 2022 is 11 billion yuan, a year-on-year decrease of 761%。
In 2023, the company's net profit will further fall to near the profit and loss line. According to the solvency report disclosed by Great Wall Life, the net profit from the first to the third quarter of 2023 was 3,541170,000 yuan, 1551050,000,000,-10141250,000 yuan, a total of -5049030,000 yuan. Net profit for the fourth quarter was 5,086760,000 yuan, making up for the loss in the first three quarters. However, the cumulative net profit for the year was only 37730,000 yuan, which can be described as a cliff-like decline compared with 2022.
According to the solvency report of Great Wall Life Insurance in the fourth quarter of 2023, Punctuation Financial Researchers saw that while the net profit fell sharply, 6 of the company's directors, supervisors and senior managers of the head office were paid between 1 million and 5 million yuan, and 11 were paid less than 500,000 yuan; The maximum annual salary is 385440,000 yuan, compared with the highest annual salary in 2022 (356.).300,000 yuan) increased slightly.
It is reported that the above salary data includes the actual cash part of the deferred bonuses and allowances in previous years in 2023. The annual bonus of the chairman, the chairman of the board of supervisors and senior executives is linked to the actual operation of the company, and the annual bonus has not yet been cashed out because the evaluation results of senior executives in 2023 have not been determined.
So, according to Great Wall Life's operation in 2023, will there be a large room for the 2023 annual bonus of senior executives? The company did not respond to questions from punctuation financial researchers.
In terms of solvency, according to Great Wall Life's solvency report for the fourth quarter of 2023, the company's core solvency adequacy ratio and comprehensive solvency adequacy ratio were respectively at the end of the fourth quarter of last year. 33%, an increase of 6 percent from the end of the third quarter of the same year61 percentage points, 563 percentage points, an increase of 555 percentage points, 802 percentage points. Although it has increased both month-on-month and year-on-year, it is still below the industry level. According to the State Administration of Financial Supervision and Administration, the comprehensive and core solvency adequacy ratios of the insurance industry at the end of 2023 were 1965% and 1278%, of which 186 were for life insurance companies2% and 1103%。
Great Wall Life's net profit for each quarter in 2023(10,000 yuan).
Data**: Great Wall Life Solvency Report.
A number of branches were penalized
Great Wall Life's solvency report also disclosed the company's violations and penalties. In 2023, a number of branches of Great Wall Life Insurance received fines.
Specifically, on December 29, 2023, the Hebi Central Branch of Great Wall Life Insurance was fined 130,000 yuan and warned by the Hebi Supervision Branch of the State Financial Supervision and Administration for "false manpower" and "lax internal control management", and Jia Xueqin, the person directly responsible for the above-mentioned "false manpower" illegal acts, was warned and fined 20,000 yuan.
On December 22, 2023, the Changzhou Central Branch of Great Wall Life Insurance was fined 80,000 yuan and ordered to make corrections by the Changzhou Supervision Branch of the State Financial Supervision and Administration for "giving policyholders unexpected benefits in insurance contracts", and on the 26th of the same month, Wang Zhigang, who was directly responsible for the above illegal acts, was warned and fined 20,000 yuan.
On August 22, 2023, the Anyang Central Branch of Great Wall Life Insurance was warned and fined 230,000 yuan by the Anyang Supervision Branch of the State Financial Supervision and Administration for the illegal acts of "untrue financial data and lax internal control management", and the former person in charge of the Central Branch was warned and fined 40,000 yuan.
On June 30, 2023, the Anhui Banking and Insurance Regulatory Bureau issued a warning and a fine of 30,000 yuan to the Anhui branch of Great Wall Life Insurance for the illegal acts of "non-standard management of ** people, failure to entrust ** people in accordance with regulations, and the insurance period of additional health insurance is less than the term of the main insurance", and gave a warning and fined 20,000 yuan and 10,000 yuan respectively to the general manager and deputy general manager of the Anhui branch of Great Wall Life Insurance Co., Ltd.
On May 5, 2023, the Dezhou Banking and Insurance Regulatory Bureau fined the Great Wall Life Dezhou Central Branch 050,000 yuan.
On March 28, 2023, the Hubei Supervision Bureau of the China Banking and Insurance Regulatory Commission fined Great Wall Life Hubei Branch 100,000 yuan for the illegal act of "compiling false information", warned and fined Zhang Qing, the head of the bancassurance channel, 10,000 yuan, and warned and fined 10,000 yuan to Wang Ping, the head of training of the banking and insurance headquarters.
Frequently raise listed companies
The movement of insurance capital in the capital market has always attracted considerable attention. Since 2023, the enthusiasm of insurance companies has continued to recover, and Great Wall Life has become the "protagonist" several times.
On January 12, 2024, Great Wall Life Insurance issued an information disclosure announcement on the listing of Wuxi Bank's A-shares**. According to the announcement, before the move, Great Wall Life held about 09.8 billion shares, accounting for 454%；Holding the face value of "Wuxi Convertible Bonds" is 1848600,000 yuan, accounting for 0 of the unconverted balance of "Wuxi Convertible Bonds".63%。From December 29, 2023 to January 9, 2024, Great Wall Life** Wuxi Bank A shares were approximately 999990,000 shares, holding a total of about 1 A shares of Wuxi Bank0.8 billion shares, accounting for 500%；Holding the face value of "Wuxi Convertible Bonds" is 3738600,000 yuan, accounting for 128%。
Ten days later, on January 22, Wuxi Bank issued an announcement disclosing that on January 19, Great Wall Life Insurance converted its "Wuxi convertible bonds" into shares, resulting in an increase in its shares. On the same day, Great Wall Life also increased its holdings of the bank's convertible bonds. After the change in equity, Great Wall Life held about 13.9 billion shares, accounting for 636%；Holding the face value of "Wuxi Convertible Bonds" is 3838800,000 yuan, accounting for 1 of the unconverted balance of "Wuxi Convertible Bonds".40%。
It is worth mentioning that the "Wuxi Convertible Bonds" have been redeemed at maturity, and January 30, 2024 is the last date for equity transfer, and they will be delisted from the Shanghai Stock Exchange from January 31, 2024.
In 2023, Great Wall Life Insurance will also successively release the brand Zhejiang Jiaotong (002061SZ), Zhongyuan Expressway (600020SH) A shares**.
According to the "Simplified Equity Change Report" released by Bank of Wuxi on January 11, 2024, as of the date of signing the report, there are three listed companies listed by Great Wall Life in addition to Bank of Wuxi, namely Zhejiang Jiaotong Branch, Zhongyuan Expressway, and Financial Street (000402sz）。