In 2023, the operating revenue of Everbright Yongming Life Insurance will decline by 23.30% year on year, and the net profit will continue the loss trend in 2022, with a cumulative loss of nearly 1.9 billion yuan in two years
Original title: What happened to this insurance company when its revenue declined and its net profit continued to lose money?
Si Xi, Researcher of Punctuation Finance and Investment Time Network
After a loss of more than 1.3 billion yuan in 2022, this "banking" insurance company lost more than 500 million yuan again in 2023.
The annual report of Everbright Yongming Life Insurance Co., Ltd. (hereinafter referred to as Everbright Yongming Life) shows that in 2023, the company's operating income will decline year-on-year, and its net profit will continue to suffer losses. In the case of high revenue pressure, the surrender amount of Everbright Yongming Life Insurance in 2023 will decrease, but it is still at a high level compared with previous years.
In addition, researchers from Punctuation Finance and Investment Time Network found that Everbright Yongming Life Insurance was punished by regulators more than once last year.
It is worth noting that the General Manager of Everbright Yongming Life has stepped down in March this year.
In terms of business performance, regulatory penalties, personnel changes, etc., the researchers of Punctuation Finance and Investment Time Network sent a communication letter to Everbright Yongming Life Insurance. As of the date of publication, no reply has been received from the company on specific issues.
Accumulated loss of nearly 1.9 billion yuan in two years
According to public data, Everbright Yongming Life was established in April 2002. Its shareholders are China Everbright Group Corporation, Canada Yongming Life Insurance Company, Anshan Iron and Steel Group Co., Ltd. and Zhongbing Investment Management Co., Ltd., with shareholding ratios of 50%, 24.99%, 12.505% and 12.505% respectively. Among them, China Everbright Group Corporation is the controlling shareholder of Everbright Yongming Life.
According to the previous annual reports of Everbright Yongming Life Insurance, from 2019 to 2023, the company's operating revenue will be 13.598 billion yuan, 16.568 billion yuan, 17.902 billion yuan, 19.969 billion yuan and 15.317 billion yuan respectively. Among them, the insurance business income reached 11.738 billion yuan, 13.470 billion yuan, 14.088 billion yuan, 17.075 billion yuan and 19.473 billion yuan respectively; The investment income was 1.738 billion yuan, 2.926 billion yuan, 3.294 billion yuan, 2.137 billion yuan and 3.575 billion yuan respectively.
It can be seen that the revenue level of Everbright Yongming Life Insurance will continue to rise from 2019 to 2022, and the revenue will decline in 2023, with a year-on-year decrease of 23.30%. In 2023, both the insurance business income and investment income of Everbright Yongming Life Insurance Co., Ltd. will rise. The decline in revenue is mainly due to the sharp increase in ceded premiums and the sharp decline in profits and losses from changes in fair value.
In addition to the decline in revenue, the profitability of Everbright Yongming Life is not optimistic.
The annual report shows that from 2019 to 2023, the net profits of Everbright Yongming Life Insurance will be 83 million yuan, 123 million yuan, 150 million yuan, 1.357 billion yuan and -513 billion yuan respectively; Net profit attributable to the parent company was 82 million yuan, 122 million yuan, 148 million yuan, 1.359 billion yuan and -516 million yuan respectively. It can be seen that Everbright Yongming Life Insurance will suffer a large loss in 2022 after years of continuous profits. The loss trend will continue in 2023, but the amount of loss will be reduced. The total loss for two years is nearly 1.9 billion yuan.
Moreover, Everbright Yongming Life Insurance's solvency report shows that from the perspective of life insurance companies, the net profit in the first quarter of this year was - 624 million yuan, with a large loss.
It is worth noting that the surrender of Everbright Yongming Life Insurance in 2022 and 2023 will increase significantly compared with previous years. Specifically, from 2019 to 2021, the surrender of the company will be 547 million yuan, 652 million yuan and 958 million yuan respectively, showing a gradual upward trend. In 2022, the surrender amount of Everbright Yongming Life Insurance soared to 2.813 billion yuan, up 193.63% year on year; In 2023, the surrender amount will fall back to 1.468 billion yuan, but it is still at a high level.
Main operating indicators of Everbright Yongming Life Insurance Company in the first quarter of 2024 (Unit: yuan)
Compliance operation ability needs to be improved
At the end of March this year, Everbright Yongming Life released an announcement on the change of general manager on its official website. The announcement showed that Sun Qiang was appointed as the temporary head of the company and Liu Fengquan was no longer the general manager of the company after performing the corporate governance procedures. It is reported that Sun Qiang is the chairman and executive director of the company.
According to the data, Liu Fengquan joined Everbright Yongming Life Insurance in February 2019 and became the general manager of the company in April. From the above analysis, we can see that during the period when Liu Fengquan was the general manager, Everbright Yongming Life's operating data fluctuated significantly.
In addition, in terms of compliance operation, Everbright Yongming Life was subject to regulatory penalties twice in 2023.
In May 2023, Taizhou Central Branch of Everbright Yongming Life Insurance Zhejiang Branch was fined 340000 yuan by Taizhou Banking and Insurance Regulatory Bureau for "preparing or providing false reports, statements, documents and materials; misleading sales", and Wu Xuyang, as the person directly responsible for the incident, was given a warning and fined 80000 yuan.
In August 2023, Everbright Yongming Life Insurance Shaanxi Branch was given a warning and fined 330000 yuan by the Shaanxi Regulatory Bureau of the State Administration of Financial Supervision and Administration of the People's Republic of China for "cheating the applicant; preparing false reports, statements, documents and materials; and not using approved or recorded insurance clauses in accordance with regulations", and the relevant responsible persons were given a warning and fined 30000 yuan in total.
Everbright Yongming Life Insurance said that the company attached great importance to the relevant problems pointed out by administrative penalties, organized the responsible units to investigate and rectify the problems in a timely manner, and will continue to further strengthen the internal control and compliance management, strengthen compliance education and training, and continue to improve the legal compliance operation ability of branches.
In terms of complaints, the annual report disclosed that in 2023, Everbright Yongming Life Insurance handled 391 consumer supervision complaints. From consumer complaints [Download Black Cat Complaint Client] In terms of business categories, it is mainly concentrated in traditional life insurance products, accounting for 60.61%. From the regional distribution of consumer complaints, they are mainly concentrated in North China, East China and South China, accounting for 33.25%, 21.74% and 19.95% respectively.
Under the strong supervision situation of the insurance industry, Everbright Yongming Life should pay attention to how to improve its compliance operation ability, reduce the number of complaints, and provide better services for financial consumers.
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