Investor.com" Meng Xing.
Cindat Life's 10 billion capital increase plan will finally be implemented at the beginning of 2024.
A few days ago, Wusan Zhongda Group Co., Ltd. *** hereinafter referred to as "Wusan Zhongda", 600704SH) announced that Cindat Life Insurance Co., Ltd. *** hereinafter referred to as "Cindat Life") received the "Reply of the Zhejiang Supervision Bureau of the State Financial Supervision and Administration on the Change of Registered Capital and Shareholders of Cindat Life Insurance Shares" issued by the Zhejiang Supervision Bureau of the State Financial Supervision and Administration of the People's Republic of China, and approved the change of the registered capital of Cindat Life Insurance Co., Ltd. to about 1020.4 billion yuan.
According to the announcement, Wusan Zhongda previously increased its capital with Hangzhou City Investment Group, Hangzhou Xiaoshan Environmental Group, Hangzhou Xiaoshan Qianjiang Century City Equity Investment Co., Ltd., and the capital increase did not exceed 937.4 billion yuan, of which: the company's capital increase with its own funds does not exceed 606.5 billion yuan. After the capital increase, the company holds 33 shares of Cindat Life00%, the company nominees no more than one-third of the total number of board members, the company does not constitute control over Cindat Life, and Cindat Life is not included in the company's consolidated financial statements.
Introduce four new shareholders
According to the data, Xintai Life Insurance was established in May 2007 and is the first local legal person life insurance company in Zhejiang. The company operates various types of life insurance business, and has the ability to invest in credit bonds, equity investment, direct investment, real estate investment and other fields, with investment assets of about 200 billion yuan as of the end of June 2023.
According to the annual report of Wushan Zhongda, the company is headquartered in Hangzhou, Zhejiang, and is a leader in China's first-class chain integration services, and is the first batch of national-level first-class chain innovation and application demonstration enterprises, and the company has been ranked among the world's top 500 companies for 12 consecutive years. According to the development strategy of "one body and two wings", the company carries out a more active, focused and effective series of management and investment activities around the integrated service of the smart chain, and shapes the industrial pattern of strategic coordination, cycle hedging and industry-finance interaction in accordance with the implementation path of "thinking with the best chain, integrating the industrial chain, and building a large ecosystem of products", and strives to build a "big and strong, rich and beautiful" respected excellent listed company.
Before the capital increase of Wusan Zhongda and other companies into Xintai Life Insurance, the shareholders of the company with a shareholding ratio of more than 5% were Deposit Insurance ** Management Co., Ltd., China Insurance Security ** Co., Ltd., and Beijing Jiusheng Asset Management Co., Ltd., with shareholding ratios respectively. 80%。
Deposit insurance and insurance protection have played a great role in resolving the risks of financial institutions in recent years. The shareholders of insurance companies such as Zhonghui Life Insurance, Ruizhong Life Insurance, and Haigang Life Insurance have all appeared in insurance protection**, and deposit insurance** has invested in Mengshang Bank, etc., and it is rare to directly invest in insurance companies.
In October last year, Cindat Life announced that the company held the second extraordinary general meeting of shareholders in 2023 on September 28, 2023, and deliberated and passed the "Proposal of Cindat Life Insurance Co., Ltd. on Changing the Registered Capital and Amending the Articles of Association", and agreed to the company's issuance of about 52 new shares0.4 billion shares, subscribed per share** of RMB18011 yuan shares, the company's registered capital will be changed from 5 billion yuan to about 1020.4 billion yuan.
According to the announcement, the voting result of the meeting was about 3659 shares agreed, 9900,000,000,000 shares against, 0 abstentions.
It is worth noting that the number of shares held by Beijing Jiusheng Asset Management Co., Ltd., the original shareholder of Cindat Life, is exactly 9900 million shares.
According to the announcement issued by Wushan Zhongda, Wushan Zhongda, Hangzhou City Investment Group, Hangzhou Xiaoshan Environmental Group, and Hangzhou Xiaoshan Qianjiang Century City increased their capital by about 60 respectively6.5 billion yuan, 165.4 billion yuan, 102.9 billion and 62.5 billion yuan, the shareholding ratio is respectively. 60% and 340%, with a total stake of 51%.
In this capital increase, deposit insurance**, insurance protection** and other original shareholders of Cindat Life Insurance did not participate, and the shareholding ratio will be diluted. After the completion of the capital increase, the shareholding ratio of deposit insurance** and insurance protection** is 17%, ranking first.
Second, the third largest shareholder.
or complement each other's strengths
For this capital increase, Wusan Zhongda pointed out in the announcement that the company's participation in the capital increase and investment in Xintai Life Insurance will help further optimize the layout of the company's financial industry, promote the close integration of insurance funds across cycles and low-cost advantages with the company's pension service industry, explore and practice the business model of "pension + insurance", and help the development of the common wealth pension industry. In addition, on the basis of complying with regulatory requirements, we will promote the integrated development of insurance investment business with the company's smart chain integration services and investment in emerging industries, and steadily enhance the core competitiveness of the company's financial services.
In May last year, Wusan Zhongda replied to investors' questions about the operation of the pension sector on the SSE interactive platform, the company said that the pension sector has been developed for 5 years, and the occupancy rate of the three major high-end pension institutions is close to full, and it has now achieved profitability.
Some analysts said that through the capital increase, Wusan Zhongda and Xintai Life Insurance may complement each other's advantages and lay out in the direction of "insurance + pension" that small and medium-sized insurance companies have always been unable to afford.
From the perspective of the operating conditions of Cindat Life, the announcement issued by Wusan Zhongda shows that the business channels of Cindat Life are mainly bancassurance channels, supplemented by economic agency and individual insurance channels, and each channel develops in a balanced manner. Cindat Life Insurance has 3 subsidiaries, 18 branches, 79 central branches and subordinate branches, and 162 fourth-level institutions, basically covering major premium provinces with relatively active economic development and high insurance depth. Cintai Life has nearly 10,000 employees, serves more than 2.5 million customers, and has a scale premium of about 50 billion yuan in 2022.
According to the announcement, according to the unaudited statements of Cindat Life, as of the end of June 2023, the total assets of Cindat Life were 22177.5 billion yuan, total liabilities 22001.6 billion yuan, net assets of 175.9 billion yuan. From January to June 2023, the company's operating income will be 3566.6 billion yuan, with a net loss of 47.8 billion yuan. According to the relevant provisions of the Notice of the China Insurance Regulatory Commission on Matters Concerning the Optimization of the Discount Rate Curve Used in the Valuation of Insurance Contract Liabilities, the unexpired liability reserve of Cindat Life's traditional insurance has been increased by about 8800 million yuan, resulting in a loss in the first half of the year. In the long run, this part of the increase in the unexpired liability reserve will be gradually released in the future insurance period, which will be reflected in future profits.
Cindat Life's solvency report for the third quarter of 2023 shows that the company achieved operating income of 446 in the first three quarters of last year9.1 billion yuan, the company did not announce the net profit.
In terms of solvency, as of the end of the third quarter of last year, Cindat Life's core solvency adequacy ratio and comprehensive solvency adequacy ratio were 10627% and 12188% to meet regulatory requirements.
In addition, Cindat Life has not disclosed a comprehensive risk rating for several quarters. According to the solvency report for the third quarter of last year, in accordance with the relevant requirements of the "Evaluation Index for Comprehensive Risk Rating (Classification Supervision) of Insurance Companies" and the technical guidelines for data submission, the company has completed the data submission of the comprehensive risk rating in the second quarter of 2023 on time through the "C-ROSS II Regulatory Information System" of the China Banking and Insurance Regulatory Commission.
A number of insurance companies "replenish blood".
Entering 2024, in addition to Cindat Life's capital increase trend, Huatai Life Insurance, Changjiang Property Insurance and other insurance companies have disclosed their approved capital increase or proposed capital increase plans.
On January 2, the State Administration of Financial Supervision and Administration approved the registered capital of Huatai Life Insurance from 36$32.5 billion increased to 4312.5 billion yuan; On January 5, Three Gorges Life announced that it had received regulatory approval and agreed to increase its registered capital from 1 billion yuan to about 153.7 billion yuan.
On January 15, Changjiang Property Insurance announced that the company's 5th extraordinary general meeting of shareholders in 2023 deliberated and approved the latest capital increase and share expansion plan. Hubei Hongtai Group actually subscribed for the company's additional shares 73.2 billion shares; Changjiang Industrial Investment subscribed 25.5 billion shares.
From the perspective of the whole year of 2023, the demand for capital replenishment of insurance companies continues to be high. According to incomplete statistics, in 2023, a total of 24 insurance companies, including China Life Property Insurance, Sunshine Insurance, and CPIC Property Insurance, have been approved for 26 capital increases, with a scale of more than 40 billion yuan. Among them, Chinese Life (Overseas) and Taikang Pension have completed two capital increases. In addition, 17 insurance companies, including Aixin Life Insurance and CITIC Prudential Life Insurance, have disclosed capital increase plans and are waiting for regulatory approval.
In addition to "replenishing blood" by increasing capital, insurance companies also replenish funds through bond issuance. According to wind statistics, insurance institutions will issue a total of 1,121 bonds in 2023700 million yuan, an increase of 399 million over 20226%, the insurance companies that issued bonds include CCB Life Insurance, Taiping Life Insurance, ABC Life Insurance, New China Life Insurance, Taiping Property Insurance, etc., and the types of bonds issued mainly include capital supplementary bonds and indefinite capital bonds.
Some analysts pointed out that in 2023, the substantial growth of the scale of insurance companies' "blood replenishment" will be affected by many factors, including intensified market competition, pressure on solvency adequacy ratio, increased volatility of investment income, stricter financial supervision, and pressure on business growth. Looking forward to 2024, the growth trend of insurers' capital replenishment scale may be strengthened due to factors such as the capital gap caused by the delay in the switching period of the second generation and second phase of the solvency rules. (Produced by Thinking Finance).