Zhao Cheng, the deputy general manager currently in charge of the work, is 51 years old and graduated from Central South University of Finance and Economics and Law with a postgraduate degree. He has worked in Cathay Property Insurance for many years and has served as the head of the Auto Insurance Department of Cathay Property Insurance. He has served as assistant to the general manager since March 2015 and as chief risk officer since December 2017.
Cathay Property Insurance Visual China Data Picture
Cathay Property Insurance was established in August 2008. It is the first Taiwanese property insurance company in mainland China. Its initial shareholders were Cathay Life Insurance Co., Ltd. (hereinafter referred to as Cathay Life) and Cathay Century Products Insurance Co., Ltd. (hereinafter referred to as Cathay Century Products Insurance) under Cathay Financial Holdings. In July 2016, Cathay Property Insurance introduced Ant Financial as a strategic investor. After the capital increase, Ant Financial became the controlling shareholder, holding 51% of the shares.
As an important layout of Ant Financial in the domestic property insurance market, Cathay Property Insurance has received a lot of "preferred". Since 2017, Cathay Property Insurance has begun to use the Internet platforms and information technology of Ant Financial and its affiliated companies to provide insurance services to end users, including but not limited to account safety insurance, worry-free accident insurance for cycling, insurance for outside bus scanning codes, Sesame Credit Hotel mortgage-free insurance, etc. Cathay Property Insurance's premium institution has therefore changed from auto insurance to liability insurance to . Cathay Property Insurance has also stated that the increase in liability insurance revenue is mainly due to its efforts in account security insurance and other aspects.
The announcement of major related transactions disclosed by Cathay Property Insurance’s official website shows that the company pays information technology service fees to Ant Financial and its affiliated companies. As of the end of the third quarter of 2018, the cumulative amount of related transactions between the company and its affiliate Ant Financial had occurred was 604 million yuan.
In terms of insurance business revenue, Cathay Property Insurance achieved insurance business revenue of 3.849 billion yuan in 2018, an increase of 195.4% from 1.303 billion yuan in 2017. However, in the 10 years since its establishment, Cathay Property Insurance has never been able to get out of the "quagmire" of losses. From 2008 to 2018, Cathay Property Insurance's net losses were RMB 19 million, RMB 17 million, RMB 47 million, RMB 49 million, RMB 138 million, RMB 186 million, RMB 71 million, RMB 147 million, RMB 162 million, RMB 92 million and RMB 43 million, respectively. Judging from the performance in 2018, Cathay Property Insurance lost 14 million yuan and 38 million yuan in the first and fourth quarters respectively, while in the second and third quarters each had a profit of about 4 million yuan.
In addition, Cathay Property Insurance is also facing a significant decline in solvency. As of the end of 2018, the solvency adequacy ratio of Cathay Property Insurance Core and the comprehensive solvency adequacy ratio were both 126.58%, a significant decrease from the data at the end of the third quarter (167.95%). However, Cathay Property Insurance issued an announcement in December last year, and the company's shareholders unanimously agreed in writing to decide that each shareholder subscribes capital according to the company's existing equity structure, with a total registered capital of 1 billion yuan. After the capital increase was completed, the proportion of investments in Cathay Property Insurance and Cathay Life Insurance in Cathay Property Insurance remained unchanged, at 51%, 24.5% and 24.5% respectively. The registered capital of Cathay Property Insurance increased from 1632653061 yuan to 2632653061 yuan.
