According to the solvency report for the second quarter of 2023 issued by Dubang Property Insurance, the company's core and comprehensive solvency adequacy ratio is 138%, and the comprehensive solvency risk rating has been reduced from B level in the previous quarter to D level ... According to the relevant provisions of solvency supervision requirements, Dubang Property Insurance is an insurance company with solvency not up to standard.
In addition, from the perspective of business structure, the insurance with the highest premium income of Dubang Property Insurance is auto insurance business. In the past three years, the company's auto insurance premium income accounted for more than 75%. However, the high proportion of auto insurance business has also brought about a large underwriting loss.
The Supervision Measures for the Solvency of Insurance Companies (II) (hereinafter referred to as "Second Generation Compensation") was officially implemented in the first quarter, which brought great pressure to many small and medium-sized insurance companies. Earlier, the China Banking Regulatory Commission said that for the insurance companies that are greatly affected, the transition policy will be determined according to the actual situation, allowing some regulatory rules to be gradually put in place and fully implemented by 2025 at the latest.
Dubang Property Insurance is the first insurance company to publicly declare that it has applied for a transitional policy. On March 2, this year, Kloc-0, the solvency supervision department of China Banking Regulatory Commission officially approved the granting of a three-year transitional policy for Dubang Property Insurance from 2023 to 2024.
The solvency report for the second quarter of 2023 shows that the core and comprehensive solvency adequacy ratio of Dubang Property Insurance is 65,438+0.38%, an increase of 65,438+0.6 percentage points over the previous quarter. Although it is still qualified from the perspective of solvency adequacy ratio, from the perspective of risk rating, Dubang Property Insurance has dropped from Grade B in the fourth quarter of 2002/KLOC-0 to Grade D in the first quarter of 2023. On the whole, the solvency of Dubang Property Insurance is still in a hurry.
In response to the question of how to improve the solvency adequacy ratio, Dubang Property Insurance revealed that the company is actively promoting the capital replenishment plan while improving its operating conditions. In the near future, through capital increase and share expansion, the company's solvency adequacy ratio will be greatly improved.
In May this year, Dubang Property Insurance announced the capital increase plan, indicating that all shareholders of the company will contribute 400 million yuan in cash. After the capital increase and share expansion, the registered capital of the company will increase from the current 2.7 billion yuan to 36,543.80 billion yuan.
However, from the perspective of the long-term development of insurance companies, increasing capital and supplementing blood is only the most direct way to achieve sufficient capital and meet development. To achieve sustainable management and enhance core competitiveness, it is necessary to improve hematopoietic capacity.
The road to the transformation of auto insurance business is long and difficult.
According to public information, Dubang Insurance was established in 2005 with a registered capital of 2.7 billion yuan, registered in Jilin City, and currently has 32 branches in China.
Looking up the annual report data, it is found that its operating conditions are not outstanding. After the meager profit in 20 17 years, from 20 18 to 202 1 year, it began to lose money year after year, achieving net losses of 88 million yuan, 67 million yuan, 40 million yuan and 243 million yuan respectively.
With the loss of net profit, the insurance business income of Dubang Property Insurance has been declining. From 20 18 to 202 1, its insurance business income was 3.847 billion yuan, 3.858 billion yuan, 3.785 billion yuan and 3.553 billion yuan respectively.
Dubang Property Insurance relies heavily on auto insurance. From 20 18 to 202 1, the auto insurance premium income of Dubang Property Insurance was 3.225 billion yuan, 365.438+9.8 billion yuan, 3.049 billion yuan and 2.67 billion yuan respectively, and the proportion of auto insurance in the overall business remained above 75%. A high proportion of auto insurance business has also brought about a large underwriting loss. From 20 18 to 202 1, the underwriting profit of Dubang Property Insurance was-260 million yuan,-2160,000 yuan,-180,000 yuan and-405 million yuan respectively.
In July this year, Dubang Insurance held a business analysis meeting in the first half of 2023. President Ji said that in terms of products, the sum of the two rates of auto insurance (the sum of payout ratio and commission rate) has dropped sharply, and the current business situation is improving, but there are still double pressures of premium and cost in the second half of the year. Italian health insurance has encountered great difficulties this year and is still in a negative growth trend.
In the first half of this year, the total contracted premiums of Dubang Property Insurance, Casualty Insurance and Health Insurance were 65.438+0.44 billion yuan, accounting for only 8.54% of the total contracted premiums. It is worth noting that in 20021year, the original premium income of Dubang property insurance accident insurance and short-term health insurance was 292 million yuan and 50 million yuan, respectively, and the underwriting profit was-35 million yuan and-02 million yuan, respectively, both of which incurred underwriting losses.
As we all know, with the continuous advancement of comprehensive auto insurance reform, the life of small and medium-sized insurance companies is not easy. As a result, insurance companies have embarked on the road of transformation. Although Dubang Property Insurance is also exploring the development of non-auto insurance business, this change will take time.