cryptocrashgame|国任财险一季度亏损1.1亿元 由盈转亏下评级展望自稳定调整至负面

SourceCryptocrashgameChinese Science Finance and Economics

The near futureCryptocrashgameThe annual report of insurance companies in 2023 and the solvency report in the first quarter of 2024 were released one after another. In 2023, the insurance business income and net profit of Guoren property Insurance Co., Ltd. (hereinafter referred to as "Guoren property Insurance") were 120 respectively.Cryptocrashgame.25 billion yuan, 2Cryptocrashgame1.4 billion yuan, up 4.86% and 111.88% respectively over the same period last year. In the first quarter of this year, Guoren's insurance business income and net profit were 4.217 billion yuan and-110 million yuan respectively. Among the similar property insurance companies, the loss of Guoren property insurance is larger. The reporter combed and found that the national property insurance investment side performed poorly or dragged down the net profit to a certain extent.

A few days ago, Fitch rating has adjusted the outlook for the financial strength (IFS) rating of Guoren property insurance companies and long-term issuer default rating from stable to negative. The negative rating outlook reflects the failure of China's property insurance shareholders to inject capital in time to support their business growth, as well as the capital cushion pressure faced by rising investment risks. In addition, Fitch Ratings also pointed out that the country's property insurance risk asset ratio will remain high in the next 12 months.

The investment side affects the net profit

According to public information, Guoren property Insurance was established in August 2009 with a registered capital of 4.007 billion yuan. It is a property insurance company headquartered in Shenzhen. Major shareholders include Shenzhen Investment Holdings Co., Ltd. (hereinafter referred to as "Shenzhen Investment"), United American Holdings (600167.SH), Shenzhen Luohu Investment Holdings Co., Ltd., Cinda assets (01359.HK) and so on.

In the first quarter of this year, the income and net profit of Guoren's property insurance business were 4.217 billion yuan and-110 million yuan respectively, from profit to loss. Among the similar property insurance companies, the loss of Guoran property insurance is large. In the first quarter of this year, the comprehensive cost rate of Guoren property insurance was 99.1%, and the underwriting side was in a profitable state. According to the 2023 annual report, the top five products with premium income of Guoren property insurance are motor vehicle insurance, credit insurance, Italian health insurance, liability insurance and guarantee insurance, with a total underwriting profit of about 197 million yuan.

Fitch also points out that the comprehensive cost rate of Guoren property insurance fell from 99 per cent in 2022 and an average of 99 per cent in 2021-2023 to 97 per cent in 2023. The improvement in this data is due to the fact that the company has strengthened its quality control to strengthen the reduction of claims, thereby reducing the comprehensive compensation rate. The rate of return on property insurance net assets rose to 6.1 per cent in 2023 from 2.5 per cent in 2022, mainly due to stronger underwriting performance despite a decline in investment income. Fitch Ratings expects that the stability of the company's underwriting profitability will be tested in the context of the expansion of financing credit and guarantee insurance business, which is vulnerable to the macroeconomic environment.

In the announcement on the regular follow-up rating information of Guoren property Insurance in the first quarter of 2024, far East Credit Evaluation Co., Ltd. pointed out that at the end of 2023, the annualized rate of return on comprehensive investment and financial investment was-1.76% and 3.28%, respectively, down 1.8 and 3.85 percentage points compared with 2022, mainly due to the increase in the contribution of insurance business profits, the company achieved a net profit of 229 million yuan. An increase of 125.71% over 2022. In addition, the lower-than-expected investment income of the company led to a decline in other comprehensive income.

According to the first-quarter solvency report, the rate of return on investment and comprehensive investment of Guoren property insurance is-1.16% and 0.22% respectively, and the average rate of return on investment and comprehensive return on investment in the past three years are 6.13% and 2.09%, respectively. The performance of Guoren property insurance investment is lower than the average level of previous years, or a drag on net profit.

According to the list of investment management capabilities published on the official website of the Insurance Industry Association (as of the end of March 2024), Guoren property insurance has two investment management capabilities, credit risk and stock. In the first quarter of this year, the book value of Guoren's property insurance investment assets dropped to 14.994 billion yuan from 15.931 billion yuan at the beginning of the period. Specifically, the book value of corporate bonds dropped from 363 million yuan at the beginning of the period to 164 million yuan, equity investment from 2.892 billion yuan at the beginning of the period to 2.662 billion yuan, insurance asset management products from 5.233 billion yuan at the beginning of the period to 5.133 billion yuan, and other investment assets from 2.904 billion yuan at the beginning of the period to 2.471 billion yuan.

Rating outlook adjusted to negative

In June 2021, Guoren property Insurance issued a financial bond on the Hong Kong Stock Exchange and the Frankfurt Stock Exchange with a US $560 million issue with a coupon rate of 3.35% and a maturity date of June 1, 2026. A few days ago, Fitch rating has adjusted the outlook of Guoren property Insurance's financial strength (IFS) rating and long-term issuer default rating from stable to negative, and confirmed that the company's insurance company's financial strength rating is "BBB+" and long-term issuer default rating is "BBB". Fitch rating also confirmed that Guoren property Insurance's US dollar senior debt rating is "BBB".

Fitch Ratings pointed out that the key rating drivers include uncertainty of capital injection, increased risk asset ratio and so on. Fitch Ratings expects that the level of venture capital of Guoren property Insurance will decline as shareholders further delay capital injection, which in turn weakens the stability of its shareholders' equity in the face of capital market fluctuations. The company's increased exposure to risky assets and weak endogenous capital growth put pressure on its capital strength. By the end of 2023, the company's capital buffer had fallen, but its capital level score, as measured by Fitch's Prism risk-oriented capital model, remained "moderate". Fitch Ratings expects Guoren property Insurance's financial leverage ratio to remain high in 2024. The ratio rose from 66 per cent at the end of 2022 to 68 per cent at the end of 2023 because of the company's weak equity base, although its senior debt of 250 million yuan matured in June 2023.

Shenzhen Investment holds a 41% stake in Guoren property Insurance, according to the solvency report. Shenzhen Investment is a wholly-owned holding company of the State-owned assets Supervision and Administration Commission of Shenzhen Municipal people's Government, and the State-owned assets Supervision and Administration Commission of Shenzhen Municipal people's Government is the actual controller of the company. In 2021, the registered capital of Guoren property insurance rose from 3 billion yuan to 4.007 billion yuan. Since then, there has been no other act of increasing capital and shares. In addition, in June 2022, Guoren property Insurance issued 3 billion yuan of insurance company bonds with a maturity date of June 29, 2032.

　　此外，股权结构方面，今年一季度末，国任财险第十一大股东湖北宏鑫实业有限公司（以下简称“宏鑫实业”）持有5000万股份处于涉诉抵债状态。裁判文书网显示，2016年3月，宏鑫实业因无法偿还中信银行（601998.SH）武汉分行的借款，法院裁定拍卖其持有国任财险5000万股份。此前，宏鑫实业持有国任财险股权被两度拍卖，但均以流拍告终。直至目前，该笔股权仍未找到接盘方。

　　此外，惠誉评级还指出，未来12个月国任财险风险资产比率仍将维持高位。2023年末，风险资产（包括权益类和惠誉调整后非投资级固收投资）占股东权益的255%（2022年末为205%），远高于IFS获评“BBB”级别保险公司的评级标准指引。权益类投资上升令该国任财险对资本市场波动存在风险敞口。

　　针对国任财险净利润亏损以及评级展望等问题，记者致函国任财险，截至发稿，尚未获得回复。