On January 12, according to the website of China Insurance Regulatory Commission, AIA’s stake in China Post Life Insurance Co., Ltd. was settled, and AIA became the second largest shareholder of China post insurance, with a shareholding ratio of 24.99%
source: website of China Banking and Insurance Regulatory Commission
According to public information, China post insurance is a life insurance company controlled by China Post. It is headquartered in Beijing and officially opened in September 2009. By the end of 2021, the total assets of China post insurance had exceeded 400 billion yuan, and the annual operating revenue had reached 100 billion yuan. AIA insurance was established in Hong Kong in 1931 and has been engaged in insurance business for more than 90 years. Its parent company AIA Insurance Holdings Co., Ltd. and its subsidiaries (AIA Group) are the independent listed life insurance group with the largest market value in the world (by the end of 2021).
becomes a Sino foreign joint venture life insurance company
On January 12, the cbcirc website issued the reply on the change of registered capital and shareholders of China post insurance.
According to the reply, the cbcirc agreed to increase the registered capital of China post insurance from 21.5 billion yuan to 28.663 billion yuan, and the new registered capital subscribed by AIA was 7.163 billion yuan. It is reported that the capital increase was completed through the implementation of Shanghai United equity exchange, with a capital introduction amount of 12.033 billion yuan. It is the largest capital increase and share expansion project in China’s insurance industry so far.
The reporter of China Securities Journal noted that in June 2021, China post insurance issued the information disclosure announcement on changes in registered capital. According to the announcement, in order to further improve corporate governance, improve the market-oriented operation mechanism and enhance the comprehensive competitive strength, China post insurance plans to issue 7.163 billion additional shares, which will be fully subscribed by the strategic investor AIA with an investment of 12.033 billion yuan.
After increasing the registered capital and shareholders, the top five shareholders of China post insurance are China Post Group Co., Ltd. (holding 38.20%), AIA (holding 24.99%), Beijing China Post Asset Management Co., Ltd. (holding 15.00%), China Philatelic Co., Ltd. (holding 12.19%) and China Post research and Planning Institute Co., Ltd. (holding 9.62%). This also means that China post insurance will become a Sino foreign joint venture life insurance company.
open a new situation of integration of individual insurance and Bancassurance in the industry
In recent years, China’s financial industry has actively pursued the policy of opening to the outside world, and the investment opportunities in the insurance market have attracted much attention. China post insurance, together with AIA, is the latest practice to promote the formation of a higher-level opening-up pattern in the insurance market. It is the latest achievement in implementing the national financial opening-up policy and promoting the mixed ownership reform of state-owned enterprises. It is also a major measure to serve the national strategy and promote the three-year action plan for the reform of state-owned enterprises.
Xia Changsheng, an analyst of Tianfeng Securities Co.Ltd(601162) , believes that AIA will expand its bancassurance business by relying on the bancassurance channel of postal group in the future, and with the advantage of Postal Savings Bank Of China Co.Ltd(601658) in sinking the market, go deep into the areas not covered by its branches and expand its source of customers. In the future, AIA may obtain the priority of postal savings consignment and preferential handling fees by holding the shares of China post insurance. In addition, the postal savings group also hopes to take advantage of AIA’s advantages (such as elite agent training, high-end customer service, etc.) to improve its channel sales ability.
It is worth mentioning that the “marriage” between AIA and China post insurance has opened a new situation for the integration of individual insurance and bancassurance.
\u3000\u3000 “In the past, it seems that the insurance industry has always been overcorrected. The main body of the industry is usually bancassurance, individual insurance, or a quick and sharp turn to switch the track. With the rapid development of the emerging Internet economy, the thinking and development direction of the traditional financial industry are also changing. Against the background of weak industry growth, we should speed up the reform and innovation on the supply side, build an ecosystem and expand our business Increase exploration in mutual integration, empowerment and diversified development. Although AIA war china post may face the problems of acclimatization in terms of culture and structure, it opens the space for transformation, upgrading and expansion of the two, as well as the industry’s thinking and imagination on the integration of individual insurance and bancassurance. ” Huachuang securities research report pointed out.
constantly overweight the Chinese market
For AIA, a successful stake in China post insurance means further overweight China’s life insurance market. Up to now, AIA has not only controlled AIA Life Insurance Co., Ltd., but also participated in China post insurance.
AIA life has made frequent moves in China. AIA life insurance was officially approved as the first wholly foreign-owned life insurance company in the mainland in 2020. It was approved to build Sichuan branch in November 2020, and Sichuan branch was approved to open in March 2021.
In June 2021, AIA life was approved to prepare for the establishment of Hubei Branch. In October, Hubei Branch completed the preparation and was approved to open.
He Ziying, an analyst at Orient Securities Company Limited(600958) (Hong Kong), pointed out that the Chinese market is an important market for AIA, which will contribute 32% of the total value of AIA’s new business in 2020. With the opening of China’s insurance market to the outside world, AIA has also accelerated its business expansion in China, and plans to set up 12 new offices in cities with more middle-income families within five years, and the newly added branches will further promote the growth of AIA’s insurance premiums in China.
