bigbassbonanzamegaways™| Foreign-invested insurance companies have increased their capital and entered the market vigorously! AIU Insurance and UNITA Property Insurance Income and Net Profit grew simultaneously
Original title: observation of foreign-funded insurance companies | Capital increase, entrance hot! American and Asian Insurance, UNITA property Insurance income and net profit increase synchronously
Recently, a number of foreign insurance companies have announced their 2023 results.Bigbassbonanzamegaways ™With the simultaneous growth of insurance income and net profit, at the same time, under the multiple factors of policy liberalization and optimistic expectations, many foreign insurance companies have chosen to make additional investment in China.
On May 15, Zhongyi property Insurance Co., Ltd. announced that according to the approval of the Beijing Regulatory Administration of the State Financial Supervision and Administration on the change of shareholders of Zhongyi property Insurance Co., Ltd. (Jing Jin Fu [2024] No. 289), it is agreed that CNPC Capital Co., Ltd. will transfer 51% of its equity in Zhongli Insurance Co., Ltd. to Zhongli Insurance Co., Ltd.
In addition, a number of foreign insurance companies, such as Swiss re-Enterprises, HSBC Life and Sino-Dutch Life, will continue to increase their investment in China in 2023 and 2022. Swiss re-business Asia Pacific CEOJonathan Rake said in a previous interview that as the world's second largest insurance market, China's insurance market is expected to double in the next decade, and China's property insurance premiums will grow strongly by about 8% in 2024-2025, which is still very attractive to foreign institutions.
At a press conference held by the State Information Office on January 25, 2024, Xiao Yuanzhang, deputy director of the State Financial Supervision and Administration, said that the State Financial Supervision and Administration has launched more than 50 opening-up measures.
One of the two policies that have a great impact on the opening up of the insurance industry is to abolish the restrictions on the proportion of foreign shares, including foreign equity participation, acquisition and capital increase in financial institutions. Foreign capital can hold 100% equity in banking and insurance institutions. The second is to significantly reduce the threshold for quantitative entry of foreign capital, enrich the types of foreign-funded institutions, abolish the original requirements for the scale and operating years of foreign-funded insurance institutions, and pay more attention to the comprehensive qualification evaluation of foreign capital.
"Foreign financial institutions are deeply involved in China's economic and financial development and the operation of the financial market, and have become a very important force in China's financial industry," Xiao said. "
Foreign insurance companies continue to increase investment in the Chinese market
At the end of January this year, Italian insurance giant Zhongli announced on its website that it had signed an agreement for about 99 million euros (about 7 percent).Bigbassbonanzamegaways ™The price of .74 billion yuan) to buy a 51% stake in Sino-Italian property Insurance. After the completion of the transaction, Zhongli Insurance will become the 100% controlling shareholder of Zhongyi property Insurance.
Zhongli Insurance, which has been in China for more than 20 years, said the acquisition of Zhongyi property insurance equity is a long-term strategic investment. Similarly, a number of foreign insurance companies believe that China is a strategically important market, which has continued to increase investment in the Chinese market in recent years, and has taken measures such as large-scale capital increase, shareholding ratio, new license application and so on.
In terms of capital increase, over the past three years, UNITA property insurance (formerly known as "China Airlines UNITA property Insurance"), Aiheyi, Tongfang Global Life, HSBC Life, Swiss re-Enterprise Merchants, Sino-Dutch Life and other foreign-funded background insurance companies, registered capital has been increased to varying degrees.
Regarding the latest round of capital increase, Pan Shaohui, General Manager and CEO of Greater China, said, "Swiss re-Enterprises have won a new round of capital increase from the Group. It reflects Swiss Reinsurance Group's confidence in the development of the Chinese market and its vision and commitment to take root in China for a long time. AndBigbassbonanzamegaways ™He believes that this capital increase will also have a positive impact on the company's financial situation and operating results, in line with the overall interests of the company, and promote the sustained, sound and healthy development of the company.
The insurance business income and net profit of many foreign-funded insurance enterprises increased at the same time.
According to the 21st century economic report, a number of foreign insurance companies increased their insurance business income and net profit simultaneously in 2023.
In terms of insurance business income, except for Tokyo Marine and Allianz Life Insurance, the business income decreased by 11% compared with 2022.Bigbassbonanzamegaways ™With the exception of 61% and 14.52%, several other foreign insurance companies have improved.
Among the foreign insurance companies on the market, AIA, as the only foreign insurance company listed in Hong Kong shares, has the largest business income, reaching 60.761 billion yuan, and its insurance business income has also reached a considerable year-on-year growth rate of 19.05%. Among the unlisted foreign insurance companies in the statistics, Sino-Dutch Life Insurance Company had the largest insurance business income in 2023, reaching 11.819 billion yuan, with a year-on-year growth rate of 31.67%. The second was Tongfang Global Life Insurance, with insurance business income reaching 8.175 billion yuan, a year-on-year growth rate of 15.56%. HSBC Life Insurance business income increased sharply last year, up 96.27% over last year to 7.311 billion yuan. The income of Axa balance insurance business reached 6.535 billion yuan, an increase of 7.57 percent over the same period last year. In addition, the insurance business income of foreign insurance enterprises, such as American Asia Insurance, Swiss re-Enterprise Merchants, UNITA property Insurance, Aiheyi, and so on, all increased compared with last year.
Oliver Bette, chairman and CEO of Allianz Group, expressed his optimism and confidence in the Chinese market when he attended the China Development Forum 2023 as the foreign chairman. "China has always been one of the most important strategic markets of Allianz in the world and the core of Allianz's growth strategy in Asia," said Oliver Bette. The Chinese market contains huge opportunities and will be the engine of Allianz's sustainable development. Allianz is well prepared.
In terms of net profit, the net profit of Meiya Insurance in 2023 was 293 million yuan, an increase of 40.55 percent over the same period last year; the net profit of UNITA property insurance in 2023 was 330 million yuan, up 79.03 percent over the same period last year; and the net profit of Aiheyi in 2023 was 80 million yuan, an increase of 48.54 percent over the same period last year. The net profit of Tokyo Sea, Tongfang Global Life, Allianz Life and Sino-Dutch Life fell by about 20% in 2023. Swiss re-enterprise, Axa balance and HSBC Life are still losing money, but HSBC Life and Axa balance are all losing less than last year.
Meiya Insurance's net profit increased by 40% compared with the same period last year, and it revealed in its 2023 annual report that it had made a profit for eight consecutive years. In the first-quarter solvency report, Meiya attributed the increase in profits to its better underwriting performance. "due to the better underwriting performance, the company achieved an underwriting profit of 75.98 million yuan and an after-tax profit of 70.34 million yuan in the quarter, resulting in an increase of 81.12 million yuan in real capital."
As for the reasons for HSBC Life's performance losses, it has been analyzed by industry insiders that it is closely related to its high reliance on bancassurance channel sales. This dependence leads to an increase in the cost of sales, which in turn affects the company's profitability. In addition, since last year, under the regulatory requirements, China's bancassurance channels have strictly implemented the "integration of newspaper and bank", and insurance companies with a relatively high proportion of bancassurance channels have suffered a greater impact.
HSBC Life is highly dependent on bancassurance channels in its business. According to the 2023 annual report, HSBC Life's top five products with original premium income, the top three products with new investment contributions and the top three products with new contributions from independent accounts of investment-linked insurance are all mainly sold through bank agents, accounting for more than 90% of the total premiums.
The continued loss of Axa balance can also be traced. According to the analysis of industry insiders, the high comprehensive cost rate has become a resistance to its development. The comprehensive cost rate is the main standard to measure the profitability of the property insurance industry. the lower the index is, the stronger the profitability of the property insurance company is, while the comprehensive cost rate announced in Axa balance's solvency report for the fourth quarter of 2023 is 107.24%. This may be related to many factors, for example, the high underwriting cost of new energy vehicle insurance is a common problem faced by the whole auto insurance industry.
However, Axa balance has been actively expanding its diversified product strategy beyond auto insurance in recent years, opening up markets such as health insurance, travel insurance and accident insurance.
The Strategy of Foreign Insurance Enterprises in China: taking long-term Sustainable Development as the Core
It is worth noting that a number of foreign insurance companies have shown their determination to gain more share in the Chinese market and accelerate their expansion, and have formulated a series of strategies and plans to achieve this goal.
For example, as Axa balance, which has entered China with a single property business for many years, Axa balance Chief Executive Officer (CEO) Zuo Weihao said in an exclusive interview with 21st Century Business Reporter that Axa balance has made a lot of efforts in diversification in the past few years, implementing business diversification step by step. He pointed out that as China's economic development rate has maintained a relatively stable and rapid growth, Axa balance is very confident about the overall prospect; secondly, compared with other foreign markets, the depth and density of domestic insurance still have a lot of room for growth and development; from the perspective of company layout, Axa balance has diversified product development since 2019, and the diversified development strategy will continue.
Zuo Weihao said that Axa balance is confident enough to operate its business in China for a long time.
Swiss re-enterprises, which just completed capital increase last year, set up a representative office in Shanghai as early as 2010 and officially entered the Chinese market in 2015, mainly carrying out non-car insurance business. including property insurance, accident and health insurance, liability insurance, construction insurance, credit guarantee, global insurance policy and so on.
CEO Jonathan Rake of Swiss re said recently that the company's development plan for this year and the next five years does not contain too many expansion goals, but focuses on long-term sustainable development and looking for new opportunities in the process of long-term sustainable development.
In addition to its core business in the large business sector, Swiss companies also plan to use technology and channel partnerships to expand their operations to target medium-sized markets to meet growing risk reduction needs, Jonathan Rake added. At the same time, Swiss re-enterprises also support Chinese enterprises to go out through global insurance policy programs and letter of guarantee business. In the international business of China's top ten contractors, Swiss re-enterprises have participated in the international guarantee services of seven of them.
Recently, Li Li, assistant to the general manager of Tokyo Marine Nikko (China), introduced the local strategy of foreign insurance companies in public. She said that after 30 years of doing business in China, Tokyo Maritime Nikko (China) has become a charming company contributing to China's economic development and social prosperity by providing reassuring and safe services. In the future, as a participant in China's reform, opening up and economic development, the company will further comply with the general trend of China's development, actively implement the requirements of the "five major articles", and contribute to the construction of China's financial power.
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