China Foundation News reporter Lin Xue
Being optimistic about the growth trend of the Chinese market, the global insurance giant increased its investment again.
On May 15, Sino Italian Property and Casualty Insurance announced that, with the approval of the regulatory authorities, it was agreed that PetroChina Capital would transfer 51% of its shares in Sino Italian Property and Casualty Insurance to Zhongli Insurance, which would become the controlling shareholder of 100% of its shares. This means the birth of another wholly foreign-owned insurance company.
Italy Zhongli Insurance said earlier that the acquisition was a long-term strategic investment, aiming to develop the property insurance business fully owned and controlled by the Group in China and expand its market share in China.
The equity transfer of Sino Italian Property and Casualty Insurance was implemented
Another wholly foreign-owned insurance company was born
On May 15, Sino Italian Property and Casualty Insurance released an announcement that, according to the Reply of the Beijing Supervision Bureau of the State Administration of Financial Supervision and Administration on the Change of Shareholders of Sino Italian Property and Casualty Insurance Co., Ltd., it was agreed that China Petroleum Group Capital Co., Ltd. (hereinafter referred to as CNPC Capital) would transfer 51% of the company's equity to Zhongli Insurance Co., Ltd. (hereinafter referred to as Zhongli Insurance). After the transfer, Zhongli Insurance's shareholding ratio is 100%. PetroChina Capital no longer holds the equity of Sino Italian Property and Casualty Insurance.
According to public data, Sino Italian Property and Casualty Insurance was established in April 2007, a joint venture between CNPC and Italian Zhongli Insurance. It is the first Sino foreign joint venture national property insurance company established after China's accession to the WTO, with a registered capital of 1.3 billion yuan.
It is understood that at the beginning of its establishment, Sino Italian Property and Casualty Insurance was 50% owned by Chinese and foreign shareholders respectively. Later, Zhongli Insurance transferred its 1% equity to CNPC Group, and the shareholding ratio of PetroChina and Zhongli Insurance was adjusted to 51:49. In September 2016, PetroChina Group transferred its 51% stake in Sino Italian Property and Casualty Insurance to PetroChina Capital.
Subsequently, in November 2023, the Beijing Equity Exchange disclosed information that PetroChina Capital planned to transfer 51% of the equity of Sino Italian Property and Casualty Insurance by listing, with a base price of 773.77 million yuan.
On January 10 this year, Zhongli Insurance released information on its official website that it had signed an agreement to acquire 51% of the equity of Sino Italian Property and Casualty Insurance at a price of about 99 million euros (about 774 million yuan). After the completion of the transaction, Zhongli Insurance will become a 100% controlling shareholder of Sino Italian Property and Casualty Insurance.
Zhongli Insurance said that the acquisition is a long-term strategic investment aimed at developing the property insurance business fully owned and controlled by the Group in China and expanding its market share in China.
Then in February, Sino Italian Property and Casualty Insurance announced that its shareholder, PetroChina Capital, had publicly listed and transferred 51% of the company's equity in Beijing Equity Exchange. The delisting party was Zhongli Insurance Co., Ltd., the original shareholder of the company. The two parties to the transaction had signed the Property Rights Transaction Contract. On January 30, 2024, the Company held the third meeting of the sixth Board of Directors and the second meeting of shareholders in 2024, deliberating and unanimously agreeing on the "Proposal on Change of Shareholders".
Now, this transaction has obtained regulatory approval and is finally completed. Sino Italian Property&Casualty Insurance has become another insurance company 100% controlled by foreign capital. Previously, there were many foreign-owned insurance companies such as AIA Life, Allianz Life and HSBC Life.
It is worth noting that PetroChina and Zhongli Insurance jointly established Zhongyi Life Insurance in 2002, with a registered capital of 3.7 billion yuan and total assets of more than 100 billion yuan. At present, PetroChina Capital and Zhongli Insurance hold 50% of the shares of Sino Italian Life Insurance.
Be optimistic about the growth trend of China's insurance market
Foreign capital overweight investment
According to the official website, Zhongli Insurance is one of the world's largest insurance and asset management providers. Founded in 1831, it has business in more than 50 countries around the world. In 2023, its total premium income will reach 82.5 billion euros. The company has nearly 82000 employees, providing services for 70 million customers.
Zhongli Insurance is very optimistic about the Chinese market. He said that China is the world's second largest property insurance market in terms of premium, and the growth trend is quite attractive.
Zhongli Insurance said that, as a single shareholder of Sino Italian Property and Casualty Insurance in the future, Zhongli would seek to expand its distribution network in China, expand green commercial insurance based on China's dual carbon investment, and optimize the distribution strategy of Sino Italian Property and Casualty Insurance by using the global, regional and local expertise of the Group.
How is the current development of Sino Italian Property and Casualty Insurance, which is 100% owned by Zhongli Insurance?
In terms of performance, in 2023, Sino Italian property insurance business income will be 1.541 billion yuan, with a year-on-year growth of 29.93%; The net profit was 32.5978 million yuan, up 15.75% year on year.
In addition, Sino Italian Property and Casualty Insurance achieved an insurance business income of 525 million yuan and a net profit of 7.9311 million yuan in the first quarter of this year. As of the end of the first quarter of this year, the total assets of Sino Italian Property and Casualty Insurance Co., Ltd. were 4.235 billion yuan and the net assets were 961 million yuan, with a total of 7 provincial branches; The company's core solvency adequacy ratio and comprehensive solvency adequacy ratio were 157.25% and 158.45% respectively, both of which were lower than that at the end of last year. The results of the last two comprehensive risk ratings were BB.
It is understood that Sino Italian property insurance strategy is positioned at an "international" boutique property insurance company with distinct differentiation, characteristics and digital characteristics, and proposes to further cultivate four key areas of personal insurance business, energy industry chain business, international business and green insurance business. Among them, the focus on green insurance is obvious.
Editor: Huang Mei
Reviewed by: Wooden Fish
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