Recently, China United Insurance Group Co., Ltd. (hereinafter referred to as "China Insurance") and its subsidiary China United Property and Casualty Insurance Co., Ltd. have made frequent moves. While successively changing shareholder equity, the new head of China Insurance Company, Ding Jianping, has been approved to take office. At the same time, China United Property Insurance signed a cooperation agreement with the A-share listed company Muyuan Food Co., Ltd. (hereinafter referred to as "Muyuan Shares", 002714.SZ) to cooperate in various fields such as insurance supply and financial financing.
Blue Whale Insurance noted that the agreement proposed that China United Property and Casualty Insurance would provide agricultural insurance products for Muyuan Shares and carry out product customization and innovation. This also means that in the face of Muyuan Shares, which is mainly engaged in pig breeding and sales business, , China United Property & Casualty Insurance Company, which is mainly engaged in insurance business and suffers losses, may take a further step in the breeding insurance industry chain. In this regard, many experts analyzed to Blue Whale Insurance that domestic breeding insurance currently has broad prospects, but due to the uncertainty of the subject matter, the design and promotion of breeding insurance also contains certain risks, which deserve the attention of insurance companies.
Shareholders' equity and leaders have changed one after another, and China Insurance Company will not "stop"
Recently, China Insurance Company has been making frequent moves at multiple levels. On July 17, China Insurance and its subsidiary China United Property & Casualty Insurance issued shareholder change announcements one after another, showing that Xinjiang Kunlun Shennong Co., Ltd. transferred 2.5 million shares each of China Insurance and China United Property & Casualty Co., Ltd. to Xinjiang Production and Construction Corps Third Division State-Owned Assets Management Co., Ltd.
Public information shows that the Third Division of the Xinjiang Production and Construction Corps is a wholly state-owned enterprise, mainly engaged in the operation and management of state-owned assets, house leasing, agricultural and sideline products and other businesses. After the equity transfer, Xinjiang Kunlun Shennong no longer holds its shares, and the shareholding ratios of the Third Division of the Xinjiang Production and Construction Corps increased to 0.065% and 0.0683% respectively.
In fact, this is the second shareholder change of China Insurance this year. In March this year, the China Banking and Insurance Regulatory Commission approved the transfer of 862 million shares held by the Insurance Guarantee Fund to Fubon Life. After the transfer, Fubon Life held China Insurance shares. rose to 12.17%, and the Insurance Protection Fund withdrew from the list of shareholders.
Previously, due to China Insurance’s serious losses and insolvency, the original China Insurance Regulatory Commission sent an internal control working group to China Insurance in 2009. Subsequently, in 2012, the Insurance Security Fund held 91.5% of China Insurance. At the beginning of this year, the Insurance Security Fund withdrew. , also marks the regulatory authorities’ “let go” of China Insurance’s internal control.
At the same time as this equity change, the head of China Insurance also changed. On July 13, the China Banking and Insurance Regulatory Commission approved Ding Jianping’s qualifications to serve as chairman of China Insurance. Before taking up the post of chairman, Ding Jianping served as Chairman of the Board of Supervisors and Deputy Secretary of the Party Committee of China Insurance, Secretary of the Party Committee of China United Property Insurance, and Secretary of the Party Committee and Chairman of China United Life Insurance. In addition, Ding Jianping also had experience in banks and asset management companies.
Equity relationship between China Insurance, China United Property & Casualty Insurance Company and China United Life Insurance
How is the current operation of China Insurance due to equity changes and the appointment of a new boss? China Insurance holds two licenses for property and casualty insurance and life insurance . In terms of life insurance, China United Life seized the tail end of 2015 and was approved to open for business. In the following two years, it achieved original insurance premium income of 125 million and 435 million respectively. In 2017, it turned profitable. In the first quarter of this year, China United Life lost money again, with a net loss of 34.0983 million yuan, and a net cash outflow of 42 million yuan. In terms of solvency, as of the end of the first quarter of this year, China United Life's core and comprehensive solvency were both 517.83%, a decrease of 324 percentage points from the end of the previous quarter, but still sufficient.
In terms of property insurance, China United Property & Casualty Insurance was established at the end of 2006. After 10 years of operation, in 2017, China United Property & Casualty Insurance achieved original insurance premium income of 38.944 billion yuan, a year-on-year increase of 0.65%. In the first five months of this year, China United Property & Casualty Insurance's original insurance premium income Insurance premium income reached 19.577 billion yuan, with a market share of 3.95%, ranking fifth among property and casualty insurance companies.
In terms of net profit, China United Property & Casualty Insurance continued to make profits in 2017, achieving 1.293 billion yuan, a year-on-year increase of 46.72%. In the first quarter of this year, it achieved a profit of 73.81 million yuan, with a net cash inflow of 773 million yuan during the same period. Looking at solvency, at the end of the first quarter of this year, the core and comprehensive solvency adequacy ratios of China United Property and Casualty Insurance were 212% and 293% respectively, a slight decrease from the previous quarter.
To explore the connection points of interests, China United Property & Casualty Insurance joins hands with Muyuan Holdings
Although China United Property & Casualty Insurance achieved a nearly 50% increase in net profit last year, its original insurance premium income has almost remained at the same level, and further expansion is needed for future development. On July 14, Muyuan Co., Ltd. issued an announcement stating that it had signed a strategic cooperation agreement with China United Property and Casualty Insurance Company to carry out "multi-level, multi-field, and all-round" insurance business cooperation.
“When insurance companies choose partners, they will mainly consider the other party’s comprehensive strength, the degree of synergy between its own business and the other party, etc.,” economist Song Qinghui told Blue Whale Insurance. Looking forward, Zhu Junsheng, deputy director of the Insurance Research Office of the Financial Research Institute of the Development Research Center of the State Council, pointed out that cooperation between insurance companies and other companies must be based on the prospects of cooperation between both parties.
Looking specifically at the content of the cooperation, first of all, in terms of insurance product supply, China United Property & Casualty Insurance provides Muyuan Insurance with property insurance, agricultural insurance and other types of insurance products. At the same time, the two will cooperate to promote insurance product innovation. China United Property & Casualty Insurance will provide personalized services to Muyuan Insurance and develop specialty insurance products.
Cooperation with insurance companies is one of the current risk coverage models used by many companies. In the face of increasingly complex risks, the current "universal" insurance products cannot meet the needs of large companies. Under the premise of controllable costs, , choosing insurance companies, providing them with experience data, and cooperating in personalized customization of insurance products, the benefits are obvious.
In the insurance claims process, the agreement clearly stated that China United Property & Casualty Insurance should provide insurance claims services in a timely and efficient manner, ensure the efficiency of damage assessment and compensation payment, and formulate "contingency plans" when necessary.
At the same time, the agreement shows that China United Property & Casualty Insurance needs to leverage the advantages of its shareholder China Orient Asset Management in asset management, banking, securities and other aspects to cooperate with Muyuan Holdings in areas such as financial assets business, and at the same time provide financing, Credit support and other services. It is not difficult to see that the cooperation between China United Property & Casualty Insurance and Muyuan Insurance also involves the respective shareholder resources of both parties.
"For both parties, it is not a bad idea to provide financial financing services based on market selection and voluntary principles without administrative interference," Zhu Junsheng analyzed, "This itself is also an insurance protection function."
" For example, when a partner initiates a project, the insurance company recognizes it and then invests, the essence of which is financial financing." Zhu Junsheng further analyzed, "There is bound to be a certain degree of uncertainty in market transactions to a certain extent. It will have a fundamental impact on the cooperation between the two parties."
Overall, Song Qinghui concluded, "When insurance companies engage in cross-border cooperation with other companies, the scope of cooperation involved is wide, but the unified purpose is ' Synergy'".
Breeding insurance has huge potential but also hidden risks. China United Property & Casualty Insurance may extend its "tentacles"
In the cooperation agreement signed between China United Property & Casualty Insurance and Muyuan Co., Ltd., what is particularly noteworthy is the cooperation between the two parties in the upstream and downstream of the pig breeding industry chain.
According to the announcement, the insurance products provided by China United Property & Casualty Insurance Co., Ltd. for Muyuan Co., Ltd. include agricultural insurance products, and it has clearly stated that it needs to provide personalized insurance services and special innovative insurance products. At the same time, the cooperation areas include "pig breeding supply". Side structural adjustment, pig breeding upstream and downstream industries. "
From this point of view, pig breeding insurance may be one of the main directions of China United Property Insurance in the future. "Pig breeding and sales are the main business of Muyuan Co., Ltd. "China United Property & Casualty Insurance started out as agricultural insurance. Under this premise, if the two reach cooperation, the supply of insurance products may be the primary consideration," Zhu Junsheng analyzed to Blue Whale Insurance.
Judging from the current insurance composition of China United Property & Casualty Insurance Company, the top five main categories of insurance do not include agricultural insurance products. However, against the background of losses in automobile insurance, accident insurance, health insurance, and engineering insurance, it has entered the aquaculture insurance industry. , which may help China United Property and Casualty Insurance develop new market space.
"In recent years, the continued expansion and development of the downstream demand market has promoted the continued expansion of the market size of my country's breeding industry. Based on this, the breeding insurance market has broad prospects," Song Qinghui analyzed.
Zhu Junsheng emphasized the market space of breeding insurance through a set of data. “Taking 2017 as an example, agricultural insurance realized original insurance premium income of 47.906 billion yuan, of which breeding insurance realized original premium income of approximately 13.2 billion yuan, accounting for approximately 28%. %". In the first five months of this year, the original premium income of agricultural insurance increased by more than 30% year-on-year. Compared with the overall growth rate of 13.10% in the property and casualty insurance business, the development momentum is rapid. Under this premise, the breeding insurance market cannot be underestimated.
In the favorable environment with broad market prospects, what cannot be ignored is the particularity of the breeding industry and the lack of practical experience in breeding insurance in the domestic insurance market. Breeding insurance itself seems to be facing risks.
First of all, it is based on the characteristics of the insurance subject. The subjects of breeding insurance are mainly livestock and poultry, which have a lot of uncertainties in the production process. Such as the death threats caused by major natural disasters and epidemics to the insurance subject matter. “Insurance companies need to do a good job in risk management, disaster prevention and loss reduction in terms of subject matter,” Zhu Junsheng analyzed Blue Whale Insurance. “For example, for the prevention of livestock diseases, insurance companies cooperate with farmers to provide support in disease prevention. thereby lowering the loss ratio.”
From the perspective of insurance companies, “the subject matter of breeding insurance is under the control of the insured, which means that there may be a certain degree of moral hazard.” Zhu Junsheng further reminded, “Therefore, when insurance companies design and launch breeding insurance , it is necessary to increase the prevention and control of such risks."
At the same time, there are also risks in the sales process of the breeding industry that require insurance protection. Blue Whale Insurance noticed that on July 18, Muyuan Shares issued a reply to the previous inquiry letter from the Shenzhen Stock Exchange, which clearly mentioned that corn prices and environmental protection measures will have an impact on pig prices, and based on market demand changes, pig sales have a certain periodicity.
Under this premise, China United Property & Casualty Insurance Co., Ltd. and Muyuan Property & Casualty Insurance Co., Ltd. will cooperate. Muyuan Property & Casualty Insurance Co., Ltd. will provide China United Property & Casualty Insurance Co., Ltd. with industry data and experience, which will help China United Property & Casualty Insurance Co., Ltd. conduct actuarial calculations of farming insurance products and provide comprehensive and accurate coverage. The various risks of Muyuan Co., Ltd.'s pig breeding business will improve the fit between insurance products and the risks that need to be protected. (Blue Whale Insurance Shi Yu)
