Pension finance is upgraded to a big article for the top-level design, the pension license has become hot, and a number of pension insurance companies are eager to try, or the original shareholders increase their capital or new shareholders enter the game.
For example, in February this year, Hengan Standard Pension increased its capital by 200 million yuan, in April Taikang Pension planned to increase its capital by 2 billion yuan, in May, Belgium Fujie Group planned to increase its capital by 1.075 billion yuan to Taiping Pension, and in June, Allianz Investment planned to invest 284 million yuan to subscribe for 228 million shares of the National Pension. Previously, Ping An Pension has also experienced several capital increases, with a capital of more than 10 billion yuan.
However, there is a pension insurance company with a special status that has been put up for sale publicly. On June 28, 100% of the equity of Everybody Pension was listed and transferred on the Beijing Equity Exchange, and the transferor was Everybody Life and Everybody's assets. This information is pre-disclosure, and the reserve price for the transfer will not be announced until the official disclosure.
As a financial asset in a specific context, if you have a good pension operation, you may be able to continue to stay in your "big family", and the business situation is difficult to improve, so you can only embark on the road of "looking for relatives" again.
July this year marks the 5th anniversary of the establishment of our insurance group, and it has been 5 years since we changed our pension name. insisted on 5 years and still did not escape this catastrophe, how much helplessness is there behind being packaged and sold?
The "robbery" of everyone's pension
"Looking for relatives" after 5 years
When it comes to pension, we have to mention its predecessor "Anbang pension".
In 2018, Anbang Group was taken over by the regulator due to business practices that violated the provisions of the Insurance Law, and in order to resolve the risks of Anbang Group, in July 2019, the regulator approved the establishment of Dajia Insurance Group to undertake the relevant assets and liabilities of Anbang Group. Up to now, we have been established for 5 years.
Among them, Anbang Pension was also subsumed under the umbrella of Dajia Insurance Group, and was officially renamed as Dajia Pension in 2019.
From the perspective of business scope, the business scope of our pension includes group pension insurance and annuity business, short-term health insurance business, accident insurance business, reinsurance business of the above business, and the use of insurance funds permitted by national laws and regulations.
After being subsumed into the insurance group, we focus more on the third pillar of commercial pension insurance protection and transform into a long-term pension insurance business. According to the data, as of the end of 2023, the pension insurance business accounted for 98.23% of the income of the pension insurance business, the proportion of regular delivery was 73.41%, and the premium continuation rate in December was 93.71%.
From the perspective of everyone's own development, its business development is not satisfactory. Specifically, after a lapse of several years, in January this year, we disclosed the solvency report for the fourth quarter of 2023, which is the first solvency disclosure in nearly seven years.
According to the data, in 2023, the income of everyone's pension insurance business will be 1.949 billion yuan, a year-on-year increase of 370.8%, and the net profit will be -160 million yuan. The reasons behind the analysis are not only investment reasons, but also related to the significant increase in operating expenses.
It is reported that as of the end of the fourth quarter of 2023, the return on investment for our pension will be 1%, the return on comprehensive investment will be 2.03%, the return on net assets will be -4.5%, and the return on total assets will be -2.26%. In 2023, its investment income will be about 78 million yuan, a decrease of 72.3% from 2022.
Let's look at operating expenses. In 2023, the operating expenditure of everyone's pension will be 2.367 billion yuan, a year-on-year increase of 144.3%. Among them, the surrender benefit was 199 million yuan, a year-on-year increase of 665.4%; the withdrawal of insurance liability reserves was 1.054 billion yuan, a year-on-year increase of 397.2%; Fees and commissions increased by 373.5% year-on-year to RMB715 million. In the solvency report for the fourth quarter of 2023, we said that in the fourth quarter of 2023, affected by Anbang's products, the comprehensive surrender rate of our pension reached 47.9%, an increase of 9.34 percentage points from the previous quarter.
In the first quarter of 2024, the net profit of everyone's pension suffered another setback, with a loss of 137 million yuan, an investment return of -0.36%, and a comprehensive investment return of 1.18%. At the same time, as of the first quarter of 2024, the solvency of everyone's pension has also declined, with the core and comprehensive solvency of 386.93% and 403.51% respectively, down 30 percentage points and 27 percentage points respectively from the end of the fourth quarter of 2023, and the solvency performance is sufficient.
Due to the pressure on the operation and the initiative of everyone's insurance to "slim down", it is difficult for everyone to escape the "catastrophe" of being sold. Now, after 5 years, the pension insurance company has once again embarked on a journey to find a new home.
For the equity listing, we said that this is the company's normal business decision, the rights and interests of our pension customers will not be affected, we will continue to take insurance as the main business, to provide customers with risk protection, health pension and wealth management package services, to meet the people's protection needs of all ages, all life scenarios.
Born ahead of one's time
Listings have been repeatedly frustrated
For the insurance group established during the special period, the equity transfer is in the preset. However, this design can be described as untimely.
In 2019, we established Dajia Insurance Group, and at the end of 2020, the new crown epidemic broke out, and the domestic and foreign environment became complicated, just catching up with the downturn in the capital market, low interest rates for a long time, and large-scale financial asset transactions became extremely difficult. Some industry analysts pointed out that compared with the previous insurance protection fund, the insurance group is in a downturn this time, and it is not easy to find a receiver with strong strength.
In July 2021, the China Insurance Security Fund even publicly transferred 98.78% of the equity of the Group on the Beijing Financial Assets Exchange, with a reserve price of 33,569.5195 million yuan, according to the public information at that time. But judging by the results, it was not possible to find a suitable buyer.
Since it could not be sold in one piece, we began to sell the relevant assets separately. For example, in January this year, Dajia Insurance Group listed and transferred 100% of the equity of its third-party payment company Bangfubao on the Beijing Financial Assets Exchange at a listed price of 438 million yuan, and in April this year, Dajia Investment Holding transferred the debt project of Chengdu Houde Tianfu Real Estate Co., Ltd. as a whole. In addition, Dajia Life Insurance has also repeatedly reduced its holdings in Financial Street Holdings Co., Ltd. Now, everyone's pension is listed for sale as a whole, which is also in the overall planning.
In the face of many insurance companies' operational difficulties, the insurance protection fund may need to take on greater responsibilities, and every time it is an emergency need. The Financial Stability Law, which has not yet been formally promulgated after several improvements and amendments, has continuously strengthened financial supervision and clarified the division of responsibilities between the central and local governments, while the Financial Stability Guarantee Fund, which is being promoted, will operate in tandem with the Deposit Insurance Fund and related industry security funds. For example, in the handling of major financial risks, financial institutions, shareholders and actual controllers, local governments, deposit insurance funds and relevant industry security funds and other parties should fully invest corresponding resources in accordance with their responsibilities and responsibilities.
From another point of view, the State-owned Assets Supervision and Administration Commission of the State Council recently proposed that the increment should be strictly controlled, and the central enterprises shall not establish, acquire, or participate in various financial institutions in principle, and the financial institutions with smaller effects and greater risk spillovers shall not participate in shares and increase their holdings in principle. That is to say, in the future, local state-owned assets and insurance security funds will play a more important role in resolving the risks of insurance companies, and the insurance security fund will "get out" from the insurance group as soon as possible is the need of the policy, and it is also the need of the market to resolve risks.
On the one hand, we are looking for buyers in passive transfer, and on the other hand, we are still actively building our own brands and continuing to move forward on the road of strengthening and expanding our main business. According to the data, the subsidiaries of Dajia Insurance Group, Dajia Life, Dajia Property Insurance, and Dajia Pension have provided a package of risk protection, health pension and wealth management services for more than 40 million customers; With asset management as an important driving force, the Group has asset management subsidiaries such as Dajia Asset Management and Dajia Investment Holdings, has an insurance private equity fund manager license, and initiated the establishment of the industry's first real estate private equity fund, with nearly one trillion yuan under management under management and more than 70 billion yuan under management on the alternative investment management platform by the end of 2023.
At present, in the insurance market, the two "business cards" created by our insurance group have attracted much attention, one is the establishment of the individual independent agent system, and the other is the continuous expansion of the urban pension community. According to the introduction of Dajia Insurance Group, with pension as the core strategy, through its professional pension brand "Everyone's Home", it has created product lines such as "urban medical care", "sojourn recuperation" and "home recuperation", and has laid out 15 urban medical care communities, 6 sojourn recuperation communities and 5 home care centers across the country.
Pension insurance companies are deeply engaged in pension finance
Heavy responsibilities
Back to everyone again. Judging from the listing information, the next step of the transfer is successful, and everyone will change their name and surname. The announcement clearly stated that if the transfer of property rights results in the loss of the actual control of the target enterprise by the state-funded enterprise and its subsidiaries, the target enterprise shall not continue to use the intangible assets such as the trade name, business qualification and franchise rights of the state-funded enterprise and its subsidiaries after the completion of the transaction, and shall not continue to carry out business activities in the name of the subsidiaries of the state-funded enterprises.
From the perspective of the industry, the pension insurance company is the only type of licensed financial institution with the word "pension" in the financial market, in addition to operating commercial insurance business, it is also an important participant in the mainland enterprise (occupational) annuity market, and has played an active role in the management of the basic pension insurance fund.
However, at present, the market size of pension insurance companies is not large. This is related to the imperfect governance system of pension insurance companies, the complex business structure, and the lack of clarity in development positioning, and the weak performance in the fierce competition with similar businesses of life insurance companies.
At the end of 2023, the State Administration of Financial Supervision issued the "Interim Measures for the Supervision and Administration of Pension Insurance Companies", clarifying that pension insurance companies should mainly engage in pension-related businesses, including pension insurance, commercial pensions, etc., and shall not be entrusted with the management of insurance funds and the development of insurance asset management products. However, the measures to implement hierarchical liberalization of business development, which puts forward higher requirements for the capital strength and corporate governance of pension insurance companies.
As a financial institution focusing on long-term pension management, it must have a strong asset-liability matching ability to effectively cope with the challenges of longevity risks in the aging and low interest rate environment. Some insurance company executives believe that pension insurance companies should develop advanced actuarial models, innovate pension management models, and use diversified management strategies and investment tools.
According to the forecast of the National Commission on Aging, by 2030, the scale of the mainland pension financial market will reach 22.3 trillion yuan, and the future pension insurance field will also usher in good development opportunities. In the face of the huge pension financial market, how much pension insurance companies can share still needs to be further observed.