biggerbassmegaways| See also the listing of insurance funds, the deployment of long-term funds is accelerating, and universal insurance no longer plays a leading role

The insurance fund of the second largest institutional investor in A shares was raised again. On the evening of May 17, Jiangnan Water (601199) and Chengfa Environment (000885) respectively issued announcements that Great Wall Life Insurance Co., Ltd. (hereinafter referred to as "Great Wall Life") held more than 5% of the company's shares. This means that Great Wall Life held up two listed companies at the same time.

Attract attentionBiggerbassmegawaysHowever, in the past two years, the insurance listing has warmed up somewhat, and less than half of this year, the listed companies have reached four times, reaching the whole year of 2022.BiggerbassmegawaysThe number of times the card is raised. Last year, the insurance capital also reached 9 times. From the point of view of the source of funds, the insurance card is no longer related to the universal insurance account, but mostly from its own funds, insurance liability reserves and so on.

Great Wall Life once again listed two companies.

After listing Wuxi Bank (600908) at the beginning of the year, Great Wall Life recently listed two listed companies again. On May 17, Jiangnan Water Affairs and Chengfa Environment respectively issued announcements that Great Wall Life held more than 5% of the shares in the company, triggering the raising of the board. Both companies said that the equity change was a long-term investment made by Great Wall Life based on the allocation needs of the insurance company and the allocation value of the company, funded by its own funds.

Although the two listed companies have no overlap, from the point of view of the business engaged in by the two companies, they are both related to public utilities and infrastructure. Jiangnan Water is an urban water service provider, the main business covers tap water supply, sewage treatment and other key areas; urban development environmental business involves garbage disposal, highway investment and operation and other areas.

"these areas usually have stable market demand, can provide stable cash flow and investment return, and meet the needs of asset allocation of insurance companies. In addition, business in these areas is usually supported by policies, has good stability and security, and can provide a safer investment environment for insurance companies. " Bo Wenxi, vice chairman of China Enterprise Capital Alliance, analyzed.

Great Wall Life revealed to the Beijing Business Daily the reasons for investing in the two listed companies. The company said that based on its firm confidence in the future development prospects of Jiangnan water and Chengfa environment, as well as its recognition of its leading position in the industry, by raising its license to become one of the important shareholders of listed companies, it can not only provide long-term and stable financial support for listed companies, but also stabilize their market prices. At the same time, it can also effectively alleviate the pressure of asset allocation, achieve mutual benefit and win-win results, and reflect the important functions of financial services entities.

From "barbarism" to stability

In fact, in addition to the above-mentioned events, there have been two other cases of raising cards with dangerous assets so far this year. In January this year, Great Wall Life raised the brand of Wuxi Bank, and Zijin Insurance raised the brand of Huaguang Huaneng.

Taken together, the number of insurance cards raised has rebounded significantly in the past two years. In 2023, the insurance capital raised its cards nine times in the whole year, compared with one in 2021 and four in 2022. In addition, in 2022, there were 2 passive lifting, no capital contribution, and only 2 active lifting.

Why is it that insurance companies have raised their cards and gradually warmed up in the past two years? Bo Wenxi said that the purpose of listing listed companies by insurance companies is to obtain stable cash flow and asset appreciation, but at the same time, factors such as market risk and liquidity risk need to be taken into account. The frequency of listed companies listed by insurance companies will be affected by a variety of factors, including the market environment, regulatory policies, insurance companies' own strategy and other factors. Zhou Di, an expert from the National Science and Technology expert Bank of the Ministry of Science and Technology, further analyzed that with the gradual deepening of the risk capital's understanding of the capital market, it is gradually realized that some high-quality listed companies have good growth and stability, so they are more willing to hold shares in these companies for a long time.

On the one hand, the number of raising cards has warmed up, on the other hand, the style of raising cards has become stable. From the analysis of the listed companies with dangerous capital, the purpose of seeking long-term stable investment income is more obvious, which is different from the previous preference for the real estate sector. in the past two years, the industries with dangerous investment are mostly concentrated in infrastructure, information, new energy and other areas in line with the national strategic direction. From the perspective of the source of funds, it is no longer related to the universal insurance account, but mostly from its own funds, insurance liability reserves and so on.

For such a change, Bo Wenxi believes that the insurance fund has gradually changed from universal insurance to self-owned funds, which reflects the trend of the insurance industry gradually returning to the source of protection. With the gradual tightening of regulatory policies, insurance companies need to pay more attention to risk control and long-term asset management.

At present, although the investment of insurance capital in the equity market has picked up somewhat, it is not high as a whole. At the same time, insurance companies' premium income continues to grow, and insurance companies also need to improve investment income on the investment side in order to achieve asset-liability matching. Based on this, it is generally predicted in the industry that the enthusiasm of listed companies with dangerous assets is expected to continue. Zhou Di said that insurance companies need to constantly optimize asset allocation and look for investment opportunities in line with their own strategy and development direction. Some high-quality listed companies usually have relatively stable market prospects and good growth. Can meet these needs of insurance companies.

Li Xiumei, a reporter from Beijing Business Daily.