During the year, the equity of insurance companies changed frequently, and small and medium-sized insurance companies became the ＂main force＂ of transactions, and the layout of foreign capital was rap

Take the initiative to leave, forced to transfer, this year, insurance companies in changes in equity are very frequent. Recently, TF Securities and Renfu Medicine have successively announced that they intend to sell their shares in Huatai Insurance, which is only a microcosm of this year’s insurance company changes in equity. On November 24th, beijing business today reporter found out that 19 insurance companies issued 23 equity change announcements, which did not include capital increase and share expansion, and three other insurance companies were listed on the property rights exchange for sale.

What types of equity change frequently? Which shareholders are withdrawing? What types of investors plan to enter the market? What mysteries are hidden behind the equity change of insurance companies?

Active divestiture, passive debt repayment, and intensive changes in the equity of insurance companies during the year.

Recently, TF Securities and Renfu Pharmaceutical announced that they plan to transfer all the shares of Huatai Insurance, and the transferee is Anda North America Holdings, with a total transfer ratio of 6.97% and a total transfer price of 2.833 billion yuan.

Regarding the issue of equity change, the relevant person in charge of Huatai Insurance said that it is the right of shareholders to transfer their shares for their own needs, and Huatai Insurance Group Company respects the decisions made by shareholders for their own consideration.

The transfer of Huatai Insurance’s equity is only the tip of the iceberg of insurance company changes in equity this year. On November 24th, beijing business today reporter found out that there were 23 equity changes in 19 insurance companies during the year, including 4 insurance group companies, 1 reinsurance company, 6 property insurance companies and 8 personal insurance companies. In addition, some shares of insurance companies such as Great Wall Life Insurance, yongcheng Property Insurance and Guoren Property Insurance are still listed on the property rights exchange for buyers.

The reasons for changes in equity, an insurance company, can be roughly classified into three categories: First, shareholders focus on their main business and take the initiative to divest non-core assets. For example, Renfu Medicine stated in the equity transfer announcement that in recent years, the company has strictly implemented the "refocusing" work, actively promoted business focus and asset optimization, and gradually withdrew from the sub-sectors where the competitive advantage is not obvious or the synergy effect is weak. Datang Capital also listed on the Shanghai United Assets and Equity Exchange due to its return to its main business, and plans to sell its 7.6% stake in yongcheng Property Insurance.

Second, due to the debt problem of some shareholders, the equity of insurance companies was paid in kind. This year, China Minsheng Trust Co., Ltd. successively acquired 17.3% and 2.7% equity of Asia Pacific Property Insurance in the form of "paying debts in kind" and became the second largest shareholder of Asia Pacific Property Insurance. The 4.326%, 1.536% and 1.536% shares of China United Property Insurance held by Zhongrong Xinda Group were transferred to three rural commercial banks in Jilin Province.

Third, shareholders sell the equity of insurance companies for capital needs, or the initial investment of shareholders is financial investment, and after the investment goal is achieved, they transfer and leave. These situations mostly occur in small and medium-sized insurance companies.

What impact will frequent changes in equity bring to insurance companies? Zhu Junsheng, deputy director of the Insurance Research Office of the Financial Research Institute of the State Council Development Research Center, said that a small proportion of changes in equity will not bring too much influence to insurance companies, while a large proportion of equity changes will lead to changes in the senior management and board members of insurance companies, which will also affect the sustainability of insurance companies’ development strategies.

Guo Zhenhua, director of the insurance department of Shanghai University of International Business and Economics, analyzed the above problems from the shareholder level. Guo Zhenhua said that if new shareholders are familiar with insurance business or have strong economic strength, it will be beneficial to insurance companies. If new shareholders have unrealistic illusions about the insurance industry, it may disrupt the original development strategy of insurance companies.

Equity transfer of small and medium-sized insurance companies is more frequent.

Judging from the body size of the subject being traded, beijing business today reporter found that most of the subjects whose shares were transferred were small and medium-sized insurance companies. Such as Huahai Property Insurance, Ancheng Property Insurance, Shidai Property Insurance, Love Life Insurance, Luxury Life Insurance, Sino-German Allianz Life Insurance, Guoyuan Agricultural Insurance, Dingcheng Life Insurance, Caixin Jixiang Life Insurance, etc. By the end of the third quarter, the net assets of these insurance companies were all below 5 billion yuan.

Why are equity transfers of small and medium-sized insurance companies more frequent? Zhu Junsheng said that at present, many small and medium-sized insurance companies are facing business pressure and have not even entered the profit period. In order to maintain solvency, shareholders need to continue to inject capital. Some shareholders are not willing to increase capital and may sell their shares. Insurance companies themselves need to introduce new shareholders to obtain financial support. Guo Zhenhua also believes that at present, large-scale insurance companies have strong profitability and shareholders can enjoy dividends. The operation of small and medium-sized insurance companies is unstable, and shareholders’ willingness to hold them is relatively low.

As far as the development status of the insurance industry is concerned, Li Wenzhong, deputy director of the Insurance Department of Capital University of Economics and Business, said that the current industry development is in a downward cycle, but the prospects are very good, which leads to the current shareholders under pressure to be eager to cash in, and investors who are optimistic about long-term development can hold equity at a lower cost, making trading more active. The liquidity of large companies’ equity in the transfer market is poor, so we see more equity transfer of small and medium-sized companies.

In addition, from the degree of transaction difficulty, Guo Zhenhua analyzed that small and medium-sized insurance companies have simple ownership structure and low transaction volume, which makes it easier to trade.

The enthusiasm for "overweight" of foreign capital is high

Among the transferees of insurance companies’ equity, foreign-funded insurance companies are more willing to enter the market. Many foreign-funded insurance companies have deepened the layout of China’s insurance industry through equity acquisition and strategic investment, such as Kailin Reinsurance Swiss Company, Allianz Group, AIA and Anda American Insurance Company.

In addition to Huatai Insurance changes in equity mentioned above, in January this year, Kailin Reinsurance Swiss Company acquired the entire equity of Xinli Reinsurance through equity acquisition; In June, AIA acquired about 25% equity of China Post Life Insurance in the form of strategic investment, and the above-mentioned changes in equity still needs regulatory approval.

In addition, Allianz Insurance accepted the assignment of CITIC Trust, acquired 49% equity of Sino-German Allianz Life Insurance, and has wholly controlled Sino-German Allianz Life Insurance.

Foreign-funded insurance companies continue to increase their layout in the domestic market, benefiting from the deepening opening up of China’s financial industry. Previously, the foreign shareholding ratio of life insurance companies did not exceed 50%, and it was later relaxed to 51%. At present, this restriction has been lifted. Zhu Junsheng analyzed that breaking through the equity ratio is the core appeal of foreign capital. Previously, due to policy restrictions, foreign capital could only enter the market in the form of joint ventures. Now that the policy has been adjusted, foreign capital will have different choices.

Market potential is also an important reason why foreign insurance companies are optimistic about the China market. Zhu Junsheng pointed out that the focus of the global insurance market has been moving eastward, and China is an important driving force. China’s demographic changes and economic development mean that the insurance industry has great development potential. Many foreign investors see this and hope to better implement their own market strategy.

What impact will the frequent entry of foreign capital bring to the domestic market? Zhu Junsheng said that with the further opening of China’s insurance market, the entry of foreign capital can promote effective competition in the domestic market and bring about an increase in market efficiency; It will also enable foreign advanced experience to better land in China.

Another professional told beijing business today that foreign-funded insurance companies can also bring some differentiated products, especially those for high-net-worth people lacking in the domestic market.

Beijing business today reporter Chen Tingting intern reporter Li Xiumei