Anxin Property & Casualty Insurance Co., Ltd. has been under-paying for 14 quarters with an additional 440 million yuan in executions
2024-08-15
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China Youth Network News(Reporter Su Xiqiang) Recently, Anxin Property & Casualty Insurance Co., Ltd. added a new person subject to execution, with the execution target exceeding 440 million yuan. China Youth Network found that since the fourth quarter of 2020, Anxin Property & Casualty Insurance Co., Ltd.'s solvency has not met the standards for 14 consecutive quarters.
According to the official website, Anxin Property & Casualty Insurance Co., Ltd. (Anxin P&C) is one of the first innovative Internet insurance companies in China. It is headquartered in Beijing and officially opened in January 2016. It adheres to the concept of "simple insurance" and its product lines cover health insurance, auto insurance and customized insurance products. However, the insured amount and number of insured persons shown on the official website are currently as of June 30, 2021.
According to Tianyancha APP, on August 8, Anxin Property & Casualty Insurance added a new person subject to execution information, the execution target was 441,400,704 yuan, and the execution court was the Hangzhou Intermediate People's Court. The related case was a property insurance contract dispute between Hangzhou Huijin Asset Management Co., Ltd. and Anxin Property & Casualty Insurance. Since 2023, Anxin Property & Casualty Insurance has had 34 persons subject to execution information, with a total execution amount of 545 million yuan.
Among the information on dishonest persons subject to enforcement, Anxin Property & Casualty Insurance has been a dishonest person subject to enforcement 24 times, the most recent being on June 5 this year, with the enforcement target being 128,833 yuan. China Youth Network noted that since 2023, Anxin Property & Casualty Insurance has received 60 consumption restriction orders. The most recent one was on August 7 this year, when Anxin Property & Casualty Insurance and its legal representative Han Gang were restricted from high consumption.
On July 30 this year, Anxin Property & Casualty Insurance Co., Ltd. released its solvency report for the second quarter of 2024. The report showed that Anxin Property & Casualty Insurance Co., Ltd.'s solvency did not meet the standards.
According to relevant regulatory provisions, three major conditions must be met simultaneously to meet solvency standards, namely, the core solvency ratio is not less than 50%; the comprehensive solvency ratio is not less than 100%; and the comprehensive risk rating is B or above.
According to the report, in the second quarter of this year, the core solvency ratio and comprehensive solvency ratio of Anxin Property & Casualty Insurance were both -884.85%. Its comprehensive risk rating was D.
Anxin Property & Casualty Insurance explained this for three reasons: first, the capitalizable risk score is zero, the capitalizable risk is relatively large, the company's retained earnings at the end of the assessment period are negative, the actual capital is negative, and the solvency adequacy ratio is seriously below the standard; second, the company's strategic risk is relatively large, and the company's net profit in the financial statements of the most recent fiscal year has continued to be negative. In addition, the company no longer conducts new business, the premium income is zero, and the company's development status is seriously mismatched with the current market environment and regulatory requirements; third, the company's governance risk is relatively large, the liquidity risk is relatively large, the cash flow is tight, and the operational risks of each business line are relatively large.
China Youth Network checked the report and found that since the fourth quarter of 2020, Anxin Property & Casualty Insurance's core solvency ratio and comprehensive solvency ratio have become negative, which has been the case for 14 consecutive quarters. And since the first quarter of 2021, its comprehensive risk rating has changed to D, which has been the case for 13 consecutive quarters. This means that Anxin Property & Casualty Insurance has failed to meet solvency standards for 14 consecutive quarters.
In terms of premiums, the report shows that Anxin Property & Casualty Insurance's insurance business income in the first half of 2024 was -93.4 yuan, of which the insurance business income in the second quarter was -93.4 yuan and the insurance business income in the first quarter was zero.
China Youth Network sorted out the report and noted that Anxin Property & Casualty Insurance's insurance business income peaked at 2.721 billion yuan in 2019, but then declined rapidly, falling to 373 million yuan in 2021. In 2022, it was -17.8644 million yuan, and in 2023 it was -43,000 yuan.
In 2021, due to severe lack of solvency, the former China Insurance Regulatory Commission implemented regulatory measures on Anxin Property & Casualty Insurance Company, including ordering it to increase capital, stop accepting new auto insurance business, and limit the salaries of senior executives.
Industry experts said that there are three main ways to solve the problem of insufficient solvency. The first is to increase registered capital, either by increasing capital from original shareholders or introducing strategic investors to increase capital; the second is to issue capital instruments such as capital bonds to improve solvency adequacy; the third is to adjust the business structure and reduce capital-intensive businesses as much as possible.
But from a realistic perspective, it remains to be seen whether Anxin Property & Casualty Insurance can escape its operating crisis. As of the end of the second quarter, its net assets were -734 million yuan, and it was already insolvent.
At present, 75 of the non-listed property and casualty insurance companies have released their solvency reports for the second quarter of this year. The China Youth Network statistical report data found that the property and casualty insurance market currently generally highlights the "Matthew effect" where the strong get stronger and the weak get weaker. In the first half of this year, the total insurance business income of the 75 property and casualty insurance companies was about 234.231 billion yuan, of which China Life Property and Casualty Insurance and China United Property and Casualty Insurance had insurance business income of 57.784 billion yuan and 41.016 billion yuan respectively, accounting for 73% of the total. There are 35 companies with insurance business income of less than 1 billion yuan, and 8 companies with insurance business income of less than 100 million yuan.
In addition to Anxin Property & Casualty Insurance, there were seven non-listed property and casualty insurance companies whose solvency did not meet the standards in the second quarter of this year. They are: Huaan Property & Casualty Insurance, Bohai Property & Casualty Insurance, Qianhai Property & Casualty Insurance, Everest Property & Casualty Insurance, Dubang Property & Casualty Insurance, Anhua Agricultural Insurance, and Fude Property & Casualty Insurance.
(Source: China Youth Network)
