Recently, Zhejiang Orient Financial Holdings Group Co.Ltd(600120) announced that it plans to invest about 303 million yuan to increase the capital of the related party China South Korea Life Insurance Co., Ltd. (hereinafter referred to as “China South Korea life”). After the capital increase is completed, Zhejiang Orient Financial Holdings Group Co.Ltd(600120) will hold 1 billion shares of China South Korea life insurance, and the shareholding ratio will change from 50% to 33.33%, still the single largest shareholder of China South Korea life insurance.
At the same time, the announcement shows that the capital increase project of China South Korea life will also introduce Zhejiang Changxing Financial Holding Group Co., Ltd. (hereinafter referred to as “Changxing financial holding”), Wenzhou state-owned financial capital management Co., Ltd. (hereinafter referred to as “Wenzhou Guojin”), Wenzhou electric power investment Co., Ltd. (hereinafter referred to as “Wenzhou electric power”) Wenzhou Transportation Development Group Co., Ltd. (hereinafter referred to as “Wenzhou jiaofa”) and Guotai Junan Securities Co.Ltd(601211) Zhengyu Investment Co., Ltd. (hereinafter referred to as “Zhengyu investment”) are five external investors.
It is understood that China South Korea life insurance is the only national life insurance company with headquarters and registered place in Zhejiang approved by the China Banking and Insurance Regulatory Commission. In the second half of 2019, China and South Korea life insurance started a comprehensive reform, improved the corporate governance structure and operation mechanism, clarified the new development strategy and business positioning, introduced a market-oriented professional manager team, and formulated a scientific authorization management and incentive mechanism, showing a steady development trend of operation on the whole. In 2020, when the growth of the whole industry slowed down, the standard premium of new individual insurance policies of China South Korea life insurance still maintained a growth of 30%, ranking the fourth among the nearly 50 life insurance companies engaged in individual insurance business according to the statistics of China Insurance Association.
Zhejiang Orient Financial Holdings Group Co.Ltd(600120) said in the announcement that the capital increase project of China South Korea life insurance is one of the 48 mixed ownership reform projects of state-owned enterprises in Zhejiang Province launched by the state owned assets supervision and Administration Commission of Zhejiang Province. The newly introduced strategic investors cover the state-owned capital of provinces, cities and counties in the Yangtze River Delta region. Wenzhou City is in the implementation stage of comprehensive financial reform policy. Changxing is one of the top 100 counties and cities in China located in the central hub area of the Yangtze River Delta, Guotai Junan Securities Co.Ltd(601211) is a national head securities firm headquartered in Shanghai. The capital increase is conducive to the joint implementation of the national strategy of Yangtze River Delta integration.
After the capital increase is completed, China South Korea life insurance will rely on the empowerment of new shareholders, fully grasp the regional advantages of the Yangtze River Delta, seize the opportunities of rapid development of the industry, continuously improve the capacity-building in corporate governance, strategic planning, team building, business strategy and asset allocation, deepen the digital reform in the insurance field, innovate products and services around serving the real economy and ensuring people’s livelihood, and give full play to the role of insurance “stabilizer”.
