Reporter of the Economic Business: Tu Yinghao Editor of the Economic Business: Yao Xiangyun
Picture source: Photo Network
On February 18, Cathay Property Insurance issued an announcement on the change of the company's person in charge stating that Longquan resigned as general manager of Cathay Property Insurance, and was decided by the board of directors, and in accordance with the document "Reply of the China Banking and Insurance Regulatory Commission on the Qualifications of Zhao Cheng of Cathay Property Insurance Co., Ltd.", Zhao Cheng was appointed as the company's deputy general manager (in charge of the work).
In September last year, some media revealed that "Longquan, general manager and CEO of Cathay Property Insurance, officially returned to , Ping An Property Insurance, , as deputy general manager", and in the Cathay Property Insurance's third quarter solvency report, Longquan's appointment information was not found. A relevant person in charge of Cathay Property Insurance said in an interview with a reporter from "Daily Economic News": "From the period when the former general manager Long Quan was resigned to the new person in charge, the company's transition in operation was stable."
"Daily Economic News" reporter noticed that due to the rapid development of the business, as of the end of 2018, Cathay Property Insurance's comprehensive solvency adequacy ratio dropped to 126.58%. However, according to the previous announcement of Cathay Property Insurance, it decided to increase its registered capital by 1 billion yuan.
is chaired by Zhao Cheng as the deputy general manager
Cathay Property Insurance was established in 2008 and its registered place is Shanghai. In July 2016, the former China Insurance Regulatory Commission approved the Ant Financial to increase its capital by 830 million yuan to acquire shares in Cathay Property Insurance, holding 51% of the shares of Cathay Property Insurance and becoming the controlling shareholder. Accompanying the changes in Cathay Property Insurance shareholders is a series of personnel adjustments. On June 15, 2017, the former China Insurance Regulatory Commission issued an announcement that Ping An veteran Longquan was approved to serve as the general manager of Cathay Property Insurance.
With Ant Financial officially investing in Cathay Property Insurance, Cathay Property Insurance has begun its transformation to technology insurance . Data from the China Banking and Insurance Regulatory Commission shows that in 2017, Cathay Property Insurance's original insurance premium income exceeded 1.3 billion yuan, an increase of nearly 100% year-on-year; in 2018, Cathay Property Insurance achieved original insurance premium income of 3.85 billion yuan, an increase of 195.6% year-on-year. Due to the rapid growth of premiums, Cathay Property Insurance's market ranking has risen rapidly from 50th in 2016 to 28th in 2018.
How Ant Financial supports the development of Cathay Property Insurance has always attracted the attention of the industry. With the efforts of Internet insurance businesses such as return freight insurance and account security insurance, Cathay Property Insurance's liability insurance jumped to the company's largest insurance type in 2017. According to information disclosed on Cathay Property Insurance's official website, as of the end of the third quarter of 2018, the cumulative amount of related transactions between the company and Ant Financial was 604 million yuan.
It is worth mentioning that Cathay Property Insurance has a very close business connection with its affiliated Alipay . For example, if you use Alipay to scan the code to ride a shared bicycle, Alipay will provide insurance for each ride, and the insurance is provided by Cathay Property Insurance. In addition, the "more collection and multiple insurance" insurance service launched by Alipay is also underwritten by Cathay Property Insurance.
According to data from the official website of Cathay Property Insurance, as of the end of the third quarter of 2018, the cumulative amount of related transactions between the company and Alipay (China) Network Technology Co., Ltd. was 430 million yuan. This means that related transactions with Ant Financial and Alipay account for nearly 50% of Cathay Property Insurance's premium income of 2.22 billion yuan during the same period.
In September 2018, Longquan, who served as general manager of Cathay Property Insurance for more than a year, was rumored to have returned to Ping An Property Insurance. In December 2018, Longquan's qualification to serve as deputy general manager of Ping An Property Insurance was approved, and the general manager of Cathay Property Insurance has been vacant since then. The latest news shows that Zhao Cheng will be the company's deputy general manager (in charge of the work). Zhao Cheng's main work experience in the past five years is the head of the auto insurance department of Cathay Property Insurance, assistant to the general manager, chief risk officer, anti-money laundering person, and anti-fraud person.
shareholders plan to increase their capital by 1 billion yuan in proportion
With the rapid growth of premiums, Cathay Property Insurance's comprehensive solvency and core solvency have been in a downward channel. From the fourth quarter of 2016 to the third quarter of 2018, its core solvency adequacy ratio and comprehensive solvency adequacy ratio were 509.26%, 496.31%, 512.36%, 383.59%, 302.21%, 220.84%, 182.29%, and 167.95%, respectively. By the fourth quarter of 2018, Cathay Property Insurance's solvency adequacy ratio dropped to 126.58%.
The relevant person in charge of Cathay Property Insurance previously stated that the company's Internet insurance business has maintained rapid growth, and the minimum insurance risk capital occupation consumes a large amount of real capital, which is the main reason for the continuous decline in solvency adequacy ratio.
At the end of 2018, Cathay Property Insurance issued an announcement to change its registered capital, stating that the company's shareholders unanimously agreed in writing to decide that each shareholder would subscribe to the capital according to the company's existing equity structure and increase the registered capital by 1 billion yuan in total. After the capital increase was completed, the proportion of Ant Financial, Cathay Century Products Insurance and Cathay Life to Cathay Property Insurance remained unchanged, at 51%, 24.5% and 24.5% respectively. The registered capital of Cathay Property Insurance increased from approximately 1.633 billion yuan to approximately 2.633 billion yuan.
This capital increase will undoubtedly help the company's further expansion of its future business. The above-mentioned Cathay Property Insurance person said: "Since Cathay Property Insurance received capital increase and stake in Ant Financial in 2016, after two years of transformation and development, it has achieved initial results through the empowerment of Ant Financial's technology. In the future, Cathay Property Insurance will continue to use technology and technology to integrate insurance into the scenarios, and through thinking about user experience, it will innovate more inclusive products."
According to the solvency report of Cathay Property Insurance, its net loss in 2018 was 43 million yuan, which continued to narrow compared with the net loss of 92 million yuan in 2017. Profit data shows that Cathay Property Insurance has not been able to get rid of the loss since its establishment. From 2008 to 2016, 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 and RMB 162 million, respectively.
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