Hongkang life chairman resignation behind: involved in corruption cases, repeated setbacks in capital
The actual controller of Hongkang Life Insurance has become chairman Lu Dezhi since the solvency report disclosed in the second quarter of 2018.But a review of the business records of its shareholders by The weekly Business World found no clear link between the shareholders and Lu.A few days ago, Hong Kang Life announced that due to personal reasons, Lu Dezhi will no longer serve as the company’s chairman, director, member of the professional committee under the board of directors and other positions, again caused market attention.In fact, hongkang life’s situation in recent years has been intriguing.Chairman Lu Dezhi did not hold shares in the case of actual control number of years, until the exit;The solvency adequacy ratio of the company has declined seriously, but the capital increase has been repeatedly frustrated. The capital increase plan has been changed for 4 times in 3 years, but there is no follow-up so far.And what kind of change will the chairman bring to Hongkang Life insurance?Market participants believe that this may mean that Hongkang Life will be in the next equity action, or will become its smooth completion of the capital increase opportunity.It is worth mentioning that on January 27, 2022, the anti-corruption film “Anti-corruption is Always on the Road” produced by the Discipline Inspection Commission of Hunan Province was broadcast on Hunan TV, which tells the case of Lu Ping, the former party secretary and general manager of Hunan China Tobacco Industry Co., LTD.After investigation, Lupin violated a number of party discipline, suspected of accepting bribes of 413 million yuan and embezzling public funds of 135 million yuan, for the national tobacco system and Hunan region since the founding of the People’s Republic of China, the largest amount involved in duty crimes.According to the feature, Lu Dezhi, chairman of Hongkang Life Insurance, was also implicated as a key figure.According to public documents, Hongkang Life Insurance was founded in 2012 with a registered capital of 1 billion yuan and seven original shareholders. Li Anmin is the legal representative and chairman of the company.In the three years since its establishment, Hongkang Life Insurance has undergone a series of capital increases and equity transfers.Until June 2015, the shareholding structure of Hongkang Life Insurance changed into: Zhenjiang Herong holding 19%, Zishi Mining holding 14.7%, Yaya Oil Chemical holding 14.5%, Jinpeng Century holding 14%, Dinuo soap holding 13.8%, Nantong Fuel and Guangxi Open Source Property Holding 12%.At that time hongkang life equity is still relatively dispersed, and there is no real controller.In October of the same year, the legal representative and chairman of Hongkang Life insurance changed from Li Anmin to Lu Dezhi.According to public records, Ludze was born in May 1962 and has a doctoral degree.On October 28, 2015, he was approved by the former CIRC as the chairman of Hongkang Life Insurance.Since 2008, he has served as the Chairman of huamin Charitable Foundation.In addition, Lu dezhi has another important identity, that is, “Xiang Hui” one of the capital managers.It is worth mentioning that One of Hongkang’s former shareholders, Heilongjiang Zhongbing Mining, had a dispute with Hongkang, alleging that the company was being manipulated by mysterious actual controllers, a charge hongkang denies.The actual controller of Hongkang life, starting with the solvency report disclosed in the second quarter of 2018, has been chairman Lu Dezhi.But a review of the industrial and commercial records of seven Hongkang life shareholders by The weekly Business World found no clear link between them and Lu.Until recently, Lu dezhi withdrew from Hongkang Life Insurance co., LTD., hongkang Life Insurance recently disclosed that the column of its actual controller became “no” again.In fact, hongkang life this chairman change is not without omen.As early as June 2020, Lu dezhi stepped down as the legal representative of Hongkang Life And was replaced by Zhou Yuhang, who was only deputy general manager of Hongkang Life at the time.According to insiders, it is rare for the legal representative to change from chairman to deputy general manager, and now it seems that Lourd’s exit or early signs.On the same day that Lu dezhi resigned as legal representative, sun Jin, an independent director, sang Liwei, Zhang Yaming and Wei Xueli also withdrew, while Sang Liwei and Zhang Yaming were the second and fifth largest shareholders of Hongkang Life Insurance nominated directors.Industry insiders believe that this may mean hongkang life in the next equity aspects will be changed.It is understood that Hongkang Life insurance focuses on Internet insurance, known as the “most thorough Internet life insurance company” in the industry, and its main insurance products include investment and even insurance, dividend insurance and so on.In addition to Beijing headquarters, Hongkang Life only henan, Jiangsu, Shanghai three branches.Perhaps with the strategic advantage of “Internet first”, Hongkang Life Insurance achieved a profit in its first full year after its establishment, breaking away from the rule of “seven even eight profit” in the insurance industry.In 2013, The net profit of Hongkang Life Insurance was 943,800 yuan, and the operating income exceeded 1 billion yuan.In the following years, thanks to its bet on dividend insurance, investment insurance and banking insurance channels, Hongkang Life’s operating income and net profit have maintained a yearly upward trend.From 2016 to 2019, Hongkang Life Insurance achieved operating income of 1.654 billion yuan, 6.675 billion yuan, 7.448 billion yuan and 12.786 billion yuan respectively, and net profit of 39 million yuan, 79 million yuan, 166 million yuan and 176 million yuan respectively in the same period, both realizing steady growth.But in comparison, the net profit performance in 2019 was less impressive, with only a slight increase of 6.47 percent year-on-year.In fact, hongkang Life insurance is facing tremendous pressure and challenges in recent years.In 2020, The operating income of Hongkang Life Insurance dropped to 2 billion yuan, while the net profit was only 33 million yuan, both shrinking by more than 80%, while the income of insurance business also dropped by nearly 35% to 8.258 billion yuan.Industry insiders pointed out that Hong Kang life’s performance fell sharply, or with the increasingly tight regulatory policies in recent years have a certain relationship.In February 2020, CBRC issued the Notice on Matters Related to Strengthening actuarial Supervision of Life Insurance, which strictly adjusted the dividend distribution of dividend insurance, clarified the upper limit of demonstration interest rate, and unified the dividend distribution ratio at 70%, which was implemented from July of the same year.And bonus risk is hongkang life is one of the main insurance, this adjustment is self-evident to its impact.According to the annual report, the top 5 insurance products in terms of original insurance premium income of Hongkang Life Insurance in 2019, and the top 4 are all dividend-sharing all-in-one insurance, realizing the total original premium income of 11.435 billion yuan, accounting for 90.17% of the company’s original premium income.In 2020, dividend insurance accounts for only three of the top five products in terms of original premium income, and the total premium is only 4.603 billion yuan, shrinking by nearly 60%.Then, with the introduction of new regulations on Internet insurance, Internet insurance sales also ushered in strong supervision.In October 2021, THE CBRC issued the Notice on Further Regulating Internet Life Insurance Business of Insurance Institutions, specifying that insurance companies that have started Internet life insurance business should complete rectification of their existing Internet life insurance business before December 31, 2021.Products that do not meet the requirements shall not be operated through Internet channels from January 1, 2022.At the same time, according to the regulatory requirements, the company redefines the Internet insurance products.It is clear that the scope of Internet personal insurance products is limited to accident insurance, health insurance (excluding nursing insurance), term life insurance, ordinary life insurance with a duration of more than 10 years (excluding term life insurance) and ordinary annuity insurance with a duration of more than 10 years.This to advocate bonus risk, cast even risk “Internet life insurance company” hong Kang life, the situation will undoubtedly be more severe.This means that many of the company’s products can not be sold in the Internet channel, industry insiders said that Hongkang Life insurance may adjust the strategy, the bank insurance channel focus to force the traditional agent.According to the solvency report data, The insurance business revenue of Hongkang Life Insurance in 2021 was 9.418 billion yuan, and the net profit was 44 million yuan.On the other hand, excessive reliance on bank insurance channels and the radical expansion of investment insurance, although the company ushered in the growth of performance, but behind it is the solvency adequacy rate of emergency.When Lu took over as chairman, the solvency ratios of Hongkang Life Insurance had declined significantly. From 2014 to 2017, the solvency ratios of Hongkang Life Insurance were 367.19%, 215.66%, 167% and 123.63%, and then remained at about 130% until returning to 162.83% in 2020.In fact, hongkang life began preparing for a capital increase shortly after Mr Lodes took over, in an effort to restore its rapidly declining solvency ratio, but it has never been able to do so.In August 2016, Hongkang Life Insurance planned to issue 200 million additional shares, introduce two new shareholders, and increase the registered capital from 1 billion yuan to 1.2 billion yuan. However, this capital increase was not completed, and its capital increase plan was frequently changed in the following years.By the end of 2018, the capital increase plan of Hongkang Life Insurance was revised for the fourth time to increase the registered capital from 1 billion yuan to 1.0884 billion yuan, and the new shareholders also underwent several rounds of changes, but ultimately failed to increase capital successfully.Up to now, hongkang life official website disclosed the registered capital is still 1 billion yuan.And behind the personnel change of the chairman, whether it will be accompanied by the change of equity, as an opportunity to complete the capital increase, it is worth paying attention to.This article is originally produced by AI Finance, a subsidiary of Caijing Weekly. Please do not reprint it without permission.Offenders shall be prosecuted.