freemoneynodepositcasino| Yingda Taihe Life Insurance lost another 1.291 billion yuan in the first quarter, with double pressure on investment and debt side

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Source: China Science Finance and Economics

Loss of profit for eight years in the first quarter, backed by the State GridFreemoneynodepositcasinoThe performance of the "power system" insurance enterprises has fallen into a downward predicament in recent years.

In 2023, Yingda Taihe Life Insurance Co., Ltd. (hereinafter referred to as "Yingda Taihe Life Insurance") lost 8%.FreemoneynodepositcasinoYingtai and Life Insurance lost another 12. 4 billion yuan in the first quarter of this year.Freemoneynodepositcasino91 billion yuan, with a significant increase in losses. Since 2022, the company has made a cumulative loss of 2.5 billion yuan. In fact, Yingtai and Life have made a profit since 2014, with a combined net profit of 1.308 billion yuan by 2021.

Taken together, the losses of Yingtai and Life Insurance may be caused by the decline in investment income caused by fluctuations in the capital market on the one hand. On the other hand, it is due to the increase in business expenses such as surrender, indemnity, withdrawal of insurance liability reserves, handling fees and commission expenses.

In the first quarter of this year, the core and comprehensive solvency adequacy ratios of Yingtai and Life were 89.41 per cent and 163.03 per cent respectively, and the results of the last two comprehensive risk ratings were BB. In terms of ownership structure, except for Wantong Life Insurance Company of the United States, 26 Chinese shareholders are wholly owned or controlled subsidiaries of State Grid Co., Ltd., and Chinese shareholders hold a total of 80.1% of Yingtai and Life Insurance. Previously, Yingtai and Life Insurance have been pushing for a capital increase, but have not been able to land for a long time. China Bond Credit Evaluation Co., Ltd. (hereinafter referred to as "China Bond Credit") pointed out in its regular follow-up rating information announcement on Yingtai and Life 2020 capital replenishment bonds in the first quarter of 2024, in the future, the company plans to increase capital and use various capital replenishment tools to replenish capital, it still needs to pay attention to the trend of the company's solvency.

Loss in the first quarter for nearly eight years of net profit

In 2014, Yingtai and Life Insurance made a profit of 9.3 million yuan, entering the profit period of "seven even and eight profits" in the life insurance industry. Since then, the net profit of Yingtai and Life Insurance has increased positively and achieved a profit of 377 million yuan in 2021. In 2022, Yingtai and Life Insurance changed from profit to loss and fell into a loss of 387 million yuan. In 2023, the loss expanded to 840 million yuan. The loss of Yingtai and Life Insurance rose to 1.291 billion yuan in the first quarter of this year. Among the unlisted life insurance companies that have disclosed their solvency reports for the first quarter of this year, Yingtai and Life also have the highest losses.

According to the latest solvency report, the average investment return and comprehensive investment return of Yingtai and Life Insurance in the past three years are 4.53% and 3.44%, respectively. In the first quarter of this year, the above two indicators of Yingtai and Life were 0.17% and 2.27% respectively, while at the end of the fourth quarter of last year, they were 3.35% and 3.41%, respectively. It can be seen that in the first quarter of this year, the company's investment income index decreased significantly compared with the end of last year.

In the rating announcement of Yingtai and Life Insurance, China Bond Credit pointed out that the company's continued losses in 2023 were mainly due to the decline in investment income caused by fluctuations in the capital market. China Integrity International Credit rating Co., Ltd. (hereinafter referred to as "China Integrity International") also pointed out in the announcement on the tracking rating information of "20 Yingtai Taihe Life" that the company's investment income and fair value change income totaled 2.725 billion yuan in 2023, down 2.35% from a year earlier.

In July 2023, Yingtai and Life Insurance announced the disclosure of major issues of equity investment management capability (indirect equity investment) on their official website, and the organizational structure of the company's asset management department (investment management department) was adjusted. Within the asset management department, there is no independent equity investment department (team) responsible for equity investment, resulting in investment management capabilities that do not meet the competency standards. Therefore, the independent development of indirect equity investment related business is suspended. In August 2021, Yingtai and Life completed the first information disclosure of equity investment (indirect) management capacity-building and self-assessment.FreemoneynodepositcasinoThe ability of indirect equity investment.

According to the information on the use of funds on the official website, Yingtai and Life Insurance usually entrust Yingda Insurance Asset Management Co., Ltd. (hereinafter referred to as "Yingda Asset Management") to invest and use insurance funds. On April 17 this year, Yingtai and Life Insurance applied for 75 million yuan of Yingda assets-Taihe preferred No. 1 asset management product; on February 1, they applied for Yingda assets-Wenli Chuangsheng No. 2 asset management product of 5 million yuan; January 30, apply for Yingda assets-Taihe No. 6 asset management product 30 million yuan. From November to December last year, Yingtai and Life Insurance respectively applied for asset management products No. 17, 27, 34, 35 and 36 of Yingda assets, with the application scale of 500 million yuan, 600 million yuan and 600 million yuan respectively.

According to the Yingda Asset Management Annual report, in 2023, the company's major related party transactions totaled 153 million yuan, which was the entrusted investment management fee collected by the company under the asset entrustment management contract signed with Yingtai Life Insurance and Yingtai property Insurance Co., Ltd. In addition, the British University of Capital Management itself is also facing a double decline in revenue and net profit in 2023, with operating income and net profit of 172 million yuan and 41 million yuan respectively, down 26.18% and 52.87% respectively from the same period last year.

The scale of surrender is expanded

In terms of surrender, the surrender payment of Yingtai and Life Insurance will reach 1.475 billion yuan in 2022, an increase of 1 billion yuan over 2021, and double to 2.917 billion yuan in 2023. According to the type of insurance, in 2023, the surrender scale of Yingtai and Life dividend life insurance, general life insurance and long-term health insurance is 509 million yuan, 2.366 billion yuan and 43 million yuan respectively. In its announcement on the tracking rating of 20Yingtai and Life Insurance, China Integrity International pointed out that in terms of business expenditure, Yingtai and Life experienced surrender, indemnity and withdrawal of insurance liability reserves totaling 18.234 billion yuan in 2023, an increase of 9.47 percent over the same period last year.

In the first quarter of this year, the total surrender scale of the products with the top three surrender amount and comprehensive surrender rate during the reporting period reached 425 million yuan. In the first quarter of this year, the surrender scale of Yingda Yuanheng B annuity insurance was 279 million yuan; last year, the cumulative annual surrender scale of the product reached 2.122 billion yuan. According to the life insurance information database on the official website of the Insurance Industry Association, Yingda Yuanheng B annuity insurance will be sold on December 1, 2016 and suspended on April 1, 2018. The recent surrender of Yingtai and Life Insurance may be related to the concentrated payment of products sold in the early years.

In the first quarter of this year, the net cash flow of Yingtai and Life's dividend account fell to-1.906 billion yuan from 1.638 billion yuan at the end of the last quarter. In 2023, the regulatory limit on the scheduled interest rate of dividend insurance will be reduced from 3% to 2.5%. In early 2024, regulators once again gave window guidance to life insurance companies, reducing the universal insurance settlement interest rate and the actual dividend level of dividend insurance.

Yingtai and Life mentioned in the 2023 annual report that in order to improve the ability of insurance risk prevention and control, the company also carried out the following work: first, improve the surrender management system, strengthen surrender monitoring, prevent and resolve the risk of surrender disputes; second, strengthen the comprehensive management of sales misleading, strengthen business quality management, improve the level of internal management, and avoid sales misleading. Yingtai and Life Insurance also mentioned in their solvency report in the first quarter of this year that the company would strengthen liquidity risk management and, if necessary, strengthen surrender management.

In 2023, four of the top five products of Yingtai and life insurance came from bancassurance channels, with total sales of 15.014 billion yuan, accounting for 78.15% of annual premiums, and commission and commission expenses of 2.576 billion yuan, an increase of 12.3% over the same period last year. In recent years, Yingtai and Life Insurance have relied on bancassurance channels, which has expanded the scale of premiums to some extent, but the expenses of handling fees and commissions are also on the rise.

In view of Yingtai and Life's performance losses and business operations and other issues, the reporter wrote to Yingtai and Life, as of press time, has not received a reply.