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Source: Business figures
Last May, BYD Zeng Hao spent 3.6 billion yuan to acquire an insurance company.
This company is called Yi'an Property Insurance, one of the four professional Internet insurance companies approved to set up in China. On July 15, 2022, Yi'an Property&Casualty Insurance entered the bankruptcy reorganization procedure due to insolvency, and carried a debt of 462 million yuan.
The debt scale is not small, but it is almost a drop in the bucket for BYD with a revenue of more than 400 billion yuan. BYD is decisive! On May 9, 2023, according to the announcement of the China Banking and Insurance Regulatory Commission, BYD acquired 100% of the shares of Yi'an Property Insurance and changed its name to BYD Property Insurance. According to enterprise information disclosure, BYD's acquisition price is about 3.6 billion yuan. Since then, BYD has become the first Chinese funded insurance enterprise solely owned by private shareholders in the insurance industry.
When 3.6 billion yuan bought an insurance license, many people questioned whether the investment was worth it and what kind of game Wang Chuanfu was playing.
A year later, new news came from BYD Property&Casualty Insurance: first, capital increase, then business change. In July last year, BYD added 3 billion yuan to its property insurance business. Two months later, BYD's property insurance business scope added "motor vehicle insurance, including compulsory motor vehicle traffic accident liability insurance and commercial motor vehicle insurance", officially entering the auto insurance market.
This morning (May 6), BYD welcomed another big news. The official website of the State Administration of Financial Supervision posted a public reply to the request of BYD Property and Casualty Insurance for approval of compulsory insurance terms and rates for motor vehicle traffic accident liability. The General Administration said that BYD Property and Casualty Insurance agreed to use the nationally unified compulsory traffic insurance clauses, basic insurance rates and corresponding rate floating factors in Anhui, Jiangxi and other places.
Auto insurance is managed locally. It is not easy to approve eight regions at one time. Wang Chuanfu has taken another big step in the field of new energy vehicle insurance.
Compared with traditional automobile insurance, the premium and loss ratio of new energy automobile insurance are relatively high, and the risk probability of new energy vehicles of various uses is also far higher than that of traditional fuel vehicles. But at the same time, this is also a big market. According to the analysis data of the auto insurance market, the premium scale of new energy auto insurance will reach 154.3 billion yuan in 2025, accounting for about 15.7% of the total premium of auto insurance.
Wang Chuanfu is regarded as a pioneer in the 100 billion dollar gold market. If every BYD can buy its own home insurance, it will be a huge number for BYD. Wang Chuanfu obviously didn't want to give up the fat meat.
At the same time, the high level of new energy vehicle insurance is not conducive to the promotion of new energy vehicles, and the self built insurance company of new energy vehicle enterprises may also be a solution. In this move, Wang Chuanfu plays high. This also means that the BYD ecosystem has another piece of puzzle.
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Editor in charge: Liang Bin SF055
