In 2023, the adverse deviation rate of net cash flow from operating activities in each quarter of Yanzhao Property Insurance will be less than -30%, or it will not meet regulatory requirements.
China Science and Technology Investment" Zhang Ting, Long Qiuyue.
Recently, various non-listed insurance companies have successively released solvency reports for the fourth quarter of 2023. As the core data used by property and casualty insurance companies to calculate operating costs, the comprehensive cost ratio industry data has also been released. The reporter checked and found that Yanzhao Property Insurance Co., Ltd. *** hereinafter referred to as "Yanzhao Property Insurance") had a comprehensive cost ratio of 157 in the fourth quarter82%, which is at a high level, and the underwriting side may face a certain degree of loss. The rise in the comprehensive cost ratio of property and casualty insurance companies often drags down the company's net profit, and at the end of 2023, Yanzhao P&C Insurance's insurance business revenue was 172.2 billion yuan, a year-on-year increase of 2017%；Net profit turned from profit to loss, appearing 4A net loss of $5.3 billion.
In addition, from the first to the fourth quarter of 2023, the net cash flow of Yanzhao Property Insurance from operating activities has a retrospective adverse deviation rate of -15749%、-519.73%、-2657.46%、-73.65%, or does not meet the regulatory requirement that "the adverse deviation rate of net cash flow from operating activities of an insurance company in the last two quarters shall not be lower than -30% consecutively". The high comprehensive cost ratio and net cash flow backtracking unfavorable deviation rate do not meet the regulatory requirements, and Yanzhao Property Insurance mainly attributed the occurrence of heavy rain disasters in the solvency report to the company's underwriting business expenses and large compensation.
Large claims push up the combined ratio of costs
Generally speaking, the lower the combined ratio reflects the stronger the profitability of the property and casualty insurer, and if the combined ratio exceeds 100%, it reflects an underwriting loss for the insurer. According to incomplete statistics, the comprehensive cost ratio of 48 property insurance companies exceeds 100%, of which 27 companies have a comprehensive cost ratio between 100% and 110%, and 21 companies have a comprehensive cost ratio of more than 110%.
In each quarter of 2023, the comprehensive ratio of Yanzhao P&C Insurance will be ., respectively82%, both above 100%. In particular, enter.
In the third and fourth quarters, the comprehensive cost ratio of Yanzhao Property Insurance was at a high level in the industry. In 2023, the combined ratio of Yanzhao P&C Insurance is 13286%, of which the comprehensive expense ratio and comprehensive loss ratio are ., respectively96%。
In this regard, Yanzhao Property Insurance explained in the solvency report that the company underwrote a large amount of compensation due to the occurrence of heavy rain disasters. According to the announcement disclosed by Yanzhao Property Insurance on the company's official website, due to the disaster caused by Typhoon "Dusuri", the rural housing in Gaobeidian in Hebei Province, which was insured by the company, has been paid as of December 29, 20235.6 billion yuan. In addition, the reporter checked the solvency report for the third to fourth quarter of 2023, and there were eight major claims of Yanzhao Property Insurance during the reporting period, with a total loss amount of about 15.5 billion yuan, all of which are shown as unclosed. Specifically, the types of insurance involving major compensation include policy-based rural housing insurance, property all risks, property comprehensive insurance, etc., and the reasons for compensation include floods, fires, accidents, and traffic accidents. It remains to be seen whether Yanzhao P&C Insurance will be affected by large claims in underwriting business expenses in the next few quarters, resulting in a higher loss ratio.
The reporter checked the annual reports of previous years and found that the top five commercial insurance types of Yanzhao Property Insurance's original insurance premium income were motor vehicle insurance, health insurance, liability insurance, accident insurance, and enterprise property insurance. According to the data on the official website, in the first half of 2022, 2022, the first half of 2023, and 2023, the overall comprehensive loss ratio of Yanzhao Property Insurance's personal short-term health insurance business will be ...64%。In the past two years, the overall comprehensive loss ratio of Yanzhao Property Insurance's short-term health insurance business has fluctuated greatly; Among them, in the first half of 2023, the overall comprehensive loss ratio of the company's short-term health insurance business is relatively high.
The rise in the combined ratio of property and casualty insurers often drags down the company's net profit. At the end of 2023, Yanzhao Property Insurance's insurance business revenue was 172.2 billion yuan, a year-on-year increase of 2017%；Net profit turned from profit to loss, appearing 4A net loss of $5.3 billion. This loss is also the largest loss of Yanzhao Property Insurance since its establishment. At the end of 2023, Yanzhao Property Insurance's return on equity and return on total assets were -4571%、-16.19%, all negative. The reporter checked the solvency reports of Yanzhao Property Insurance last quarter, and Yanzhao Property Insurance stated that there were no major investment losses, and the investment yield and comprehensive investment return of Yanzhao Property Insurance were .16%, the average investment return rate and comprehensive investment return rate in the past three years were ., respectively95%。
The negative deviation rate of net cash flow from operating activities in multiple quarters exceeded -30%.
After the implementation of the second phase of the C-ROSS project, the liquidity risk supervision indicators of insurance companies mainly include net cash flow, net cash flow from operating activities, retrospective adverse deviation rate, liquidity coverage ratio, etc.
It is worth noting that from the first to the fourth quarter of 2023, the net cash flow of Yanzhao Property Insurance from operating activities has a retrospective adverse deviation rate of -15749%、-519.73%、-2657.46%、-73.65%。Solvency Rule No. 13 – Liquidity Risk requires that an insurer's net cash flow from operating activities in the last two quarters must not be less than -30% consecutively. Yanzhao Property Insurance's net cash flow retrospective unfavorable deviation rate may not meet regulatory requirements. Yan Zhao property insurance in.
The solvency reports for the third and fourth quarters both explained that the unfavorable deviation rate of the company's net cash flow from operating activities in the quarter exceeded the regulatory standard of -30%, mainly due to the occurrence of heavy rain disasters, and the company's underwriting business expenses were largely compensated.
For last year. In the first and second quarters, the reason for the unfavorable deviation rate of the net cash flow of Yanzhao property insurance operating activities exceeded -30%, the reporter sent a letter to Yanzhao property insurance, but as of press time, no reply has been received.
In addition, in the fourth quarter of 2023, Yanzhao Property Insurance's net cash flow fell to 0200 million yuan, from the perspective of the net cash flow indicator of operating activities with a premium of 100 yuan, the cumulative amount in the fourth quarter of 2023 is -2974 yuan, mainly due to the catastrophe compensation expenditure and the historical receivables collection effect is not obvious.
The last two comprehensive risk ratings of Yanzhao Property Insurance are both B, and the rating results have not changed. However, due to factors such as large claims caused by floods, the score of the comprehensive risk rating index, especially the liquidity risk score, showed a downward trend month-on-month. At the end of 2023, Yanzhao P&C Insurance's core and comprehensive solvency adequacy ratios were both 23404%, and the number of ** in the next quarter under the basic scenario is 20911%。
According to public information, Yanzhao Property Insurance was established in February 2015, registered in Shijiazhuang City, Hebei Province, and was initially initiated by seven shareholders including Hebei Construction Investment Group Co., Ltd. and HBIS Group. The latest solvency report discloses that Kangde Industrial Group, a shareholder of Yanzhao Property Insurance, is frozen due to a debt and guarantee liability dispute with the bank. Yanzhao Property Insurance shareholder Rongsheng Holding Co., Ltd. *** hereinafter referred to as "Rongsheng Holdings") holds 100 million shares of Yanzhao Property Insurance due to the handling of equity pledge loan business. According to the official website of Qichacha, Kangde Industry has been listed by the court as a person subject to high consumption, and Rongsheng Holdings has been listed by the court as a dishonest person subject to execution, a person subject to execution, and a person subject to high consumption.
In 2020, Yanzhao Property Insurance issued an announcement on the capital increase and share expansion project on the Hebei Financial Assets Exchange, stating that it plans to raise 3 billion yuan to expand the scope of business operations. This is also the first capital increase and share expansion of Yanzhao Property Insurance since its establishment. The current registered capital of Yanzhao Property Insurance is still 20500 million yuan, but did not successfully complete the capital increase and share expansion.
In response to issues such as the comprehensive cost ratio and liquidity risk of Yanzhao Property Insurance, the reporter sent a letter to Yanzhao Property Insurance, but as of press time, no reply has been received.