Source: Blue Whale Finance
(Image source: Visual China) At 10:00 on May 24, on the Ali judicial auction platform, 146 million shares of Beibu Gulf Property and Casualty Insurance Co., Ltd. (hereinafter referred to as "Beibu Gulf Property and Casualty Insurance") were auctioned for one day, and the second auction failed. The equity was held by Guangxi Changjiang Tiancheng Investment Group Co., Ltd. (hereinafter referred to as "Changjiang Tiancheng"), less than two months before its first auction. The starting price is the same, so is the fate of the current auction.
(Source: Ali Judicial Auction) As the Beibu Gulf Property and Casualty Insurance, which is rooted in Guangxi, its performance fluctuated in the past two years under the adjustment of business structure. In 2023, it turned into a profit. However, in the first quarter of this year, there was a loss again. The comprehensive cost ratio also tended to be higher. In terms of solvency, it was adequate on the whole, but it was greatly affected by the company's capital size, profitability and the settlement of premiums receivable.
36% of the equity was pledged, and Changjiang Tiancheng, the fifth largest shareholder, was involved in litigation disputes
At the end of March this year, Changjiang Tiancheng, as the executor, held 146 million shares of Beibu Gulf Property and Casualty Insurance for the first time, which was priced at 203 million yuan. At that time, there were more than 1600 onlookers at the auction, 25 people set reminders, but 0 people signed up. Nearly two months later, the equity was auctioned for the second time at the same starting price, but there were only 766 onlookers, 13 people set reminders, and no one registered.
From the perspective of equity relationship, Changjiang Tiantian has become the fifth largest shareholder of Beibu Gulf Property and Casualty Insurance, holding 150 million shares of Beibu Gulf Property and Casualty Insurance, accounting for 10% of the total shares. At present, all of its shares are pledged. 146 million shares were auctioned, accounting for 97% of its equity.
Blue Whale News noted that more than one-third of the equity of Beibu Gulf Property&Casualty Insurance is in pledge status. In addition to 150 million shares held by Changjiang Tiancheng, there are 300 million shares held by Guangdong Hongfa Investment Group Co., Ltd., the second largest shareholder, accounting for 20%, and 90 million shares held by Guangxi Pinglv Group Co., Ltd., the sixth largest shareholder, accounting for 6%, all in pledge status. The three shareholders pledged 540 million shares in total, accounting for 36% of the total 1.5 billion shares.
(Equity structure of Beibu Gulf Property and Casualty Insurance; source: solvency report) As for pledged equity, Beibu Gulf Property and Casualty Insurance also proposed that, as the majority shareholder Guangdong Hongfa Investment pledged more than 50% of its equity, the company has restricted its relevant voting rights according to regulatory requirements, and urged shareholders to comply with their commitment to release the pledge or reduce the pledge ratio as soon as possible.
At the same time, it was also mentioned that Changjiang Tiancheng was repeatedly frozen by the relevant court due to civil litigation disputes. The company closely monitored the changes in equity, prepared public opinion response plans and reported the changes in equity.
From the perspective of the market, on the one hand, the attractiveness of insurance licenses is indeed declining, and the capital side is becoming more rational. The industry insiders pointed out that, at the same time, based on the perspective of Beibu Gulf Property and Casualty Insurance itself, the proportion of auction equity is less than 10%, and the transferee can not get the right to speak. From the perspective of financial investment, the current performance of Beibu Gulf Property and Casualty Insurance should be considered, And investors' long-term optimism.
Fluctuation of performance Turn loss into profit in 2023, and the comprehensive cost rate in the first quarter tends to be higher
Beibu Gulf Property&Casualty Insurance, founded in 2013, is the first national legal person insurance institution headquartered in Guangxi. It is co sponsored by Guangxi Financial Investment Group and 13 enterprises inside and outside Guangxi Zhuang Autonomous Region.
Based on the regional advantages and the synergy advantages of shareholders in multi business sectors in Guangxi Zhuang Autonomous Region, the business channels of property insurance in the Beibu Gulf continued to expand. However, in the past two years, with the business transformation, the performance of Beibu Gulf Property&Casualty Insurance fluctuated.
According to the analysis of United Credit, in 2021, due to the decline in the scale of non auto insurance business, the proportion of the company's auto insurance income in the insurance business income has increased. Under the background of comprehensive reform of auto insurance, the market competition has increased. Under the influence of intense horizontal competition, adjustment of non auto insurance products, and control over the growth of high compensation auto insurance product business, the premium of the year was 3.587 billion yuan, slightly lower than the 3.61 billion yuan of the previous year. In 2022, Beibu Gulf Property and Casualty Insurance will continue to reduce the scale of high compensation business, resulting in a decrease in the scale of auto insurance, with a premium income of 3.6 billion yuan, almost the same as that of the previous year.
In terms of profits, in 2021 and 2022, Beibu Gulf Property and Casualty Insurance lost money for two consecutive years. In 2021, the scale of premium will shrink, while the compensation expenses will increase, with a net loss of 159 million yuan in the current year. In 2022, the loss will narrow, but the comprehensive loss ratio will still be at a high level, with a net loss of 100 million yuan in the current year.
In 2023, the performance of property insurance in the Beibu Gulf will recover, and the expansion of auto insurance and agricultural insurance will be strengthened, with the premium increasing by 3.6% year on year; The automobile insurance and agricultural insurance accounted for 45.7% and 32.5% respectively.
In terms of profitability, Beibu Gulf Property and Casualty Insurance will turn into a profit in 2023, thanks to the growth of premium and the decline of compensation level, achieving a net profit of 46 million yuan. However, in the first quarter of 2024, Beibu Gulf Property and Casualty Insurance suffered another net loss of 30 million yuan, with a comprehensive cost rate of 106.57%, which is significantly higher than the 99.66% at the end of the previous year. It is worth noting.
In terms of solvency, by the end of the first quarter of 2024, the core and comprehensive solvency adequacy ratios of Beibu Gulf property insurance were 153.25% and 290.04% respectively. It is sufficient on the whole, but it is lower than that at the end of last quarter. The factors behind the change are the decrease of real capital and the increase of minimum capital.
As for the main reason for the decrease of actual capital, Beibu Gulf Property and Casualty Insurance said that the decrease of actual capital was due to the operating losses of the company in this quarter and the increase of floating losses of some investment assets superimposed on changes in the financial market. The main reason for the increase of the minimum capital is that the company's retained premium in the first quarter increased month on month and the comprehensive cost rate at the underwriting end changed, which increased the minimum capital occupation of insurance risk.
At the same time, Beibu Gulf Property and Casualty Insurance said frankly, "It can be seen from the quarterly solvency changes and liquidity risks that the company's solvency adequacy ratio is greatly affected by the company's capital size, profitability and the settlement of premiums receivable."
In order to improve the solvency adequacy ratio of the company, Beibu Gulf Property&Casualty Insurance Company proposed an improvement plan, that is, to promote the increase of the company's actual capital by increasing the company's capital and other ways. In terms of business structure, we will continue to make adjustments, strengthen underwriting management and control, improve the quality of claims service, reduce the cost of various expenses, and improve profitability; At the same time, we will continue to promote the collection of premiums receivable and reduce the occupation of premiums receivable on the Company's actual capital.
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