壓瀲傘沼覽生瀁

Reading Chinese classics on mobile phone Economic Daily WeChat China Economic Network WeChat

Bohai Property and Casualty Insurance intends to raise no more than 1 billion funds and has been losing money for nearly 4 years

来源: 每日经济新闻 January 9, 2020, 07:21 Source: Daily Economic News

Every reporter Yuan Yuan, every editor Liao Dan

Following the disclosure of the capital increase plan by State Property and Casualty Insurance and Taishan Property and Casualty Insurance, Bohai Property and Casualty Insurance released information regarding the capital increase.

A few days ago, Bohai Property & Casualty Insurance Co., Ltd. launched a "capital increase project" in the Tianjin Property Exchange Center. The proposed fundraising will not exceed 1 billion yuan, and the corresponding shareholding ratio will not exceed 29.74%.

It is reported that the capital increase project ends on February 27, 2020. Bohai Property and Casualty Insurance said that the purpose of the fundraising is mainly to supplement the company's solvency and support for investment and non-auto insurance development.

Public offering of not more than 968 million shares

Public information shows that in this capital increase, Bohai Property and Casualty has issued no more than 968 million shares through public means. The price per share of the shares subscribed by the intended investor must not be lower than (including) 1.0331 yuan. The capital increase is the same as the same price. The fund to be raised does not exceed 1 billion yuan, and the corresponding shareholding ratio does not exceed 29.74%. At the same time, Tianjin TEDA International Holdings (Group) Co., Ltd., the largest shareholder of the capital increase enterprise, may conduct non-public agreement to increase its holdings as necessary to maintain the shareholding ratio unchanged at 40.62%.

After the capital increase is completed, the total shareholding ratio of the original shareholders is not less than 70.26%, and the total shareholding ratio of the new shareholders does not exceed 29.74%. There is no limit to the number of newly introduced investors. Bohai Property & Casualty Insurance has the right to decide whether to initiate the selection process to determine the final investor, the capital increase price and the number of shares subscribed by the final investor.

For investors, Bohai Property & Casualty Insurance also gave requirements, mainly from the basic situation and outstanding advantages of qualified prospective investors, the future development ideas and strategic synergy of the capital increase enterprises, the development strategy and business ideas of capital increase capitals. Selection of the management structure of the capital increase enterprise, the management model and the assessment and reward mechanism, the investment amount, and the number of subscriptions.

The project is listed as of February 27, 2020. If qualified investors are not solicited, the information release time will be extended with a period of 5 working days until qualified investors are solicited. If a qualified prospective investor is solicited, the capital increase enterprise has the right to decide whether to extend the release of information as appropriate.

Bohai Property & Casualty Insurance was established in October 2005. It is the first national property insurance company headquartered in Tianjin with a registered capital of 1.625 billion yuan. It was established by a state-owned backbone enterprise in Tianjin. Its products include motor vehicle insurance, corporate property insurance, and engineering insurance. , Cargo transportation insurance, liability insurance, guarantee insurance, accident insurance, short-term health insurance.

In 2012, Bohai Property and Casualty Insurance introduced Oceania's largest non-life insurance company, Australia Insurance Group, as a strategic investor. There are currently 6 shareholders. Among them, Tianjin TEDA International Holdings (Group) Co., Ltd. holds 40.62% of the shares and is the largest shareholder; Australia Insurance Group Co., Ltd. holds 16.92% of the shares and is the second largest shareholder.

As a small and medium property and casualty company with more than 10 years of establishment, Bohai Property and Casualty's profitability is not optimistic. According to the information disclosed by the project, the company has been losing money since 2016, with losses of 18.29 million yuan, 194 million yuan, and 112 million yuan from 2016 to 2018, and a net loss of 280 million yuan in the first 11 months of 2019. As of November 2019, Bohai Property and Casualty Insurance had total assets of 5.79 billion yuan and owner's equity of 815 million yuan.

Several property insurance companies have capital increase plans

Regarding the capital increase, Bohai Property and Casualty Insurance said that the funds were mainly used to supplement the company's solvency and support investment and non-auto insurance development.

Data show that as of the end of the third quarter of 2019, the core solvency adequacy ratio and comprehensive solvency adequacy ratio of Bohai Property and Casualty Insurance were 128.85%, which was higher than the minimum regulatory requirement of 100%, but both were lower than the end of last quarter. According to the 2018 annual report data, of Bohai Property and Casualty's approximately 4 billion yuan in insurance premiums, auto insurance premiums exceeded 3.5 billion yuan, accounting for more than 80%, which is higher than the industry's average proportion of auto insurance, and non-auto insurance business is less. However, with the advent of the auto insurance ceiling, non-auto insurance business has gradually become another direction of the development of property insurance agencies.

Information on the official website of Bohai Property and Casualty Insurance shows that at the mid-2019 work conference of Bohai Property and Casualty Insurance, Bohai Property and Casualty Insurance will strengthen the solvency management, promote the quality growth of auto insurance, and accelerate the development of non-auto insurance specialization and specialization. Focus work.

It is worth mentioning that Bohai Property and Casualty Insurance is not the only one driving the capital increase. Since the second half of 2019, a number of property and casualty insurance companies, including Bohai Property and Casualty Insurance, have publicly issued capital increase announcements for different reasons.

Take Guoren Property and Casualty Insurance Co., Ltd. as an example. In October 2019, Guoren Property and Casualty Insurance Co., Ltd. disclosed the capital increase information on the Shenzhen United Property Exchange. Although the amount of capital increase announced in the later period was changed from the previous plan, the purpose of the capital increase was very clear. Regarding the use of the funds raised from the capital increase, Guoren Property and Casualty Insurance said that all the funds will be used to enhance the company's own capacity building, serve new businesses and transform traditional businesses.

In November 2019, Taishan Property & Casualty Insurance also listed a capital increase and share expansion information in the Shandong Equity Exchange Center. It plans to add 673 million yuan of equity and the capital increase is not less than 882 million yuan. After the capital increase was completed, the original shareholders held 75.1% of the shares and the strategic investors held another 24.9%. Regarding the reasons for the capital increase, Taishan Property & Casualty said that it is used to optimize the equity structure, improve the corporate governance mechanism, further enhance the company's core competitiveness, build a first-class insurance company, and maintain and increase the value of state-owned assets.

Some people in the industry have stated that loss of performance requires increased operating expenses, decline in solvency requires replenishment of capital, and business expansion requires capital support. These are common reasons for insurance companies to "capitalize and replenish blood".

(Responsible editor: Wei Jingting)


China Economic Network statement: Stock market information comes from cooperative media and institutions, is the author's personal opinion, is for investors' reference only, and does not constitute investment advice. Investors do so at their own risk.
Wonderful picture
Full Observation

Bohai Property and Casualty Insurance intends to raise no more than 1 billion funds and has been losing money for nearly 4 years

来源:每日经济新闻 2020-01-09 07:21 Source: Daily Economic News
View full text