Recently, Fubon Property & Casualty Insurance Co., Ltd. (hereinafter referred to as "Fubon Property & Casualty Insurance") announced that it plans to increase capital by 62 million yuan to the parent company of Weimin Insurance Agency Co., Ltd. (hereinafter referred to as "Weimin Insurance Agency "), and will continue to Promote Internet channels.
Blue Whale Insurance noticed that as a Taiwan-funded insurance company, Fubon Property & Casualty Insurance has made many "changes" since entering the mainland market, including introducing Chinese shareholders and increasing capital several times, but it has not changed the dilemma of being in losses since its establishment. .
It is worth noting that Fubon Property & Casualty Insurance told Blue Whale Insurance that it will focus on non-auto insurance businesses in the future, trying to throw away the "baggage" of perennial losses in the auto insurance business. Can Fubon Property & Casualty Insurance, which has changed its direction and move forward, get what it wants?
has shifted its focus, and Fubon Property & Casualty Insurance has increased its capital by RMB 62 million to micro-insurance parent company
Recently, Fubon Property & Casualty Insurance announced that it will participate in the capital increase of Shenzhen Tengfubo Investment Co., Ltd. (hereinafter referred to as "Tengfubo Investment").
It is understood that Tengfubo Investment has increased its capital by a total of 200 million yuan (150 million yuan for the first phase and 50 million yuan for the second phase), which will be subscribed by each shareholder according to their shareholding ratio. Among them, Fubon Property & Casualty Insurance holds 31.1% of the equity. It is planned to invest 62.2 million yuan in cash to participate in the capital increase, with an initial investment of 46.65 million yuan and a second phase investment of 15.55 million yuan.
Blue Whale Insurance inquiry found that the remaining two shareholders of Tengfubo Investment are Beijing Yima Shentong Information Technology Co., Ltd. (hereinafter referred to as "Yima Shentong") and CDB Boyu Phase II (Shanghai) Equity Investment Partnership, each holding shares 57.8%, 11.1%, and behind the magical power of Yima is the "figure" of and Tencent .
Equity structure chart of Shenzhen Tengfubo Investment Co., Ltd.
It is worth noting that Tengfubo Investment has only one subsidiary, Weimin Insurance (Weibao), and it is also the first insurance platform controlled by Tencent.
In October 2017, the original China Insurance Regulatory Commission approved Wemin Insurance to operate insurance agency business, including agency sales of insurance products; agency collection of insurance premiums; agency for loss survey and claims settlement of related insurance business, etc. At that time, it was also regarded as Tencent's role in insurance An important "chess piece" in the field. The high reputation may also cause the public to focus more attention on the Tencent Group and ignore the identity of the sponsor of Fubon Property & Casualty Insurance.
So, is this capital increase in Tengfubo Investment also paving the way for the development of WeSure's business?
"The capital increase in the parent company will be conducive to the further development of the micro-insurance business." Economist Song Qinghui analyzed Blue Whale Insurance and said that in his view, further improvement in financial strength will also be conducive to winning the trust of customers.
"Generally speaking, investment companies are not like financial institutions and have certain capital requirements," said Guo Zhenhua, director of the Insurance Department of Shanghai University of International Business and Economics. In his view, the main purpose is to pave the way for business expansion.
"Fubon Property & Casualty Insurance's investment in mainland China is proactive among Taiwan-funded companies." An industry insider from a Taiwan-funded insurance company pointed out that the capital increase may also be optimistic about the insurance market.
The mainland's "gold rush" failed, and Fubon Property & Casualty Insurance is still in the red 8 years after its establishment.
Looking back, the ultimate controller of Fubon Property & Casualty Insurance is Fubon Financial Holdings Co., Ltd. (hereinafter referred to as "Fubon Financial Holdings"). Registered in Taiwan, it mainly provides financial products and related services. Starting from Xiamen , Fubon Financial Holdings began to actively expand into the mainland market, and Fubon Property & Casualty Insurance was "born" in this context.
What is counterproductive is that since it was approved for business development at the end of 2010, Fubon Property & Casualty Insurance has been in losses and has not realized its desire to "gold rush" in the mainland market.
Annual report data over the years shows that from 2011 to 2017, with the expansion of business scale, Fubon Property & Casualty Insurance’s insurance business income increased gradually, but the loss situation has never changed, with a loss of 744 million yuan in 7 years. Before 2018 In September, Fubon Property & Casualty Insurance’s losses narrowed, with a total loss of 19.1275 million yuan.
Fubon Property & Casualty Insurance’s insurance business income and net profit from 2011 to 2017 (100 million yuan)
In fact, the main reason why the performance is not optimistic can also be seen from the insurance business structure.
Blue Whale Insurance found out that since the launch of the industry, motor vehicle insurance (including compulsory traffic insurance) has always ranked first in the insurance premium income of Fubon Property and Casualty Insurance, and the resulting losses have also made Fubon Property and Casualty Insurance fall into difficulty in the auto insurance business of small and medium-sized property and casualty insurance companies. In the "quagmire" of profit.
Fubon Property & Casualty Insurance Auto Insurance Business Situation from 2011 to 2017 (100 million yuan, %)
Accompanied by losses, Fubon Insurance has made multiple capital increases.
In 2013, Xiamen Port Holding Group (hereinafter referred to as "Xiamen Port") subscribed for an additional capital of 100 million yuan and held 20% of the shares. Fubon Property & Casualty Insurance's registered capital increased from 400 million yuan to 500 million yuan, and the company's nature was transformed into a joint venture. insurance company.
In fact, the introduction of local Chinese shareholders in Xiamen changed the company's "identity" and may facilitate entry into the local market, but it did not improve Fubon Property & Casualty Insurance's operating conditions.
In 2014, regulatory approval was granted to Fubon Property & Casualty Insurance and Fubon Life Insurance each to invest 80 million yuan, and Xiamen Port Investment invested 40 million yuan to increase the capital of Fubon Property & Casualty Insurance, changing the registered capital to 700 million yuan; in 2015, Fubon Property & Casualty Insurance once again Obtained "funding" from shareholders and increased the registered capital to 1 billion yuan.
data shows that after the capital increase was completed in 2015, the solvency adequacy ratio of Fubon Property & Casualty Insurance rebounded to 363.65%. However, business development brought about capital consumption and no profit was made up. The solvency adequacy ratio declined gradually, reaching 133.72 in 2017. %, which further fell to 126.6% at the end of the third quarter of 2018, which is at a low level among property and casualty insurance companies.
Abandoned car insurance losses are a "burden", and there are still hard bones to crack when trying to change channels
To a certain extent, Fubon Property & Casualty Insurance and Tencent jointly set up micro-insurance, which may be a "self-rescue" operation for the company that has been suffering from losses for many years. .
In fact, looking at Cathay Property & Casualty Insurance, which is also a Taiwanese insurance company, it was also suffering from long-term losses earlier. After introducing Ant Financial as a strategic investor and transforming from traditional business to Internet business, it is currently operating The situation has improved.
"The combination of technology companies and insurance companies is conducive to realizing large-scale development of insurance business through data and credit systems and maximizing profits," Song Qinghui pointed out.
“We have been working hard on the Internet,” a spokesperson for Fubon Property & Casualty Insurance told Blue Whale Insurance. The Internet is one of the important channels for acquiring customers.
In addition to Internet channels, Fubon Property & Casualty Insurance also plans to "seek change" by adjusting its business structure.
"Currently, Fubon Property & Casualty Insurance is trying to reduce the proportion of traditional business as much as possible," a spokesman for Fubon Property & Casualty Insurance responded, "It can be seen that the proportion of our auto insurance business has been declining continuously." He said that in the future, he will focus on To develop non-auto insurance business, "whatever you do to make money, it should be better than auto insurance."
From the data point of view, in 2015, Fubon Insurance’s auto insurance business reached its peak, accounting for 78.24% of insurance business revenue. In 2016, it dropped to 74.6%. In 2017, this proportion dropped again to 67.7%.
At present, in the field of property and casualty insurance, competition in auto insurance is fierce, and "small and medium-sized insurance companies generally suffer losses." Zhu Junsheng, deputy director of the Insurance Research Office of the Institute of Finance, Development Research Center of the State Council, once said that the comprehensive cost ratio of many non-auto insurance businesses is higher than that of auto insurance businesses. High, the requirements for talent teams and experience are higher, and breakthroughs cannot be achieved simply by withdrawing from the auto insurance market and developing new market business.
"No matter what type of insurance, a certain scale is needed to evenly amortize fixed costs." Guo Zhenhua holds a similar view. He pointed out that most of the non-auto insurance businesses are traditional businesses. "Unless you rely on shareholder resources or new technologies can use".
"Fubon Property & Casualty Insurance, the parent company of Fubon Property & Casualty Insurance, ranks among the top in terms of property insurance business volume in Taiwan." The above-mentioned industry insiders pointed out that this is related to Fubon's large business system in Taiwan and the group's rich resources. However, in mainland China In the market, despite the introduction of Chinese shareholders, the situation has not changed significantly yet.
"You still need to find your positioning and find your own advantages." Guo Zhenhua suggested that small and medium-sized insurance companies need to explore and form a distinctive and centralized business model.
"Foreign-funded small and medium-sized property insurance companies should make efforts to adjust development strategies and localize operations to achieve healthy development," Song Qinghui added. At the same time, my country should grant equal national treatment to foreign-funded insurance institutions to further promote the development of the insurance industry. develop.
(Editor: Guo Weiying)
