On January 18, the Hong Kong stock exchange data showed that ant group reduced its holdings of 46537063 shares in Zhong'an insurance, and the shareholding ratio decreased from 13.54% to 10.37%. In addition, the shareholding ratio of Tencent and Ping An Insurance (Group) Company Of China Ltd(601318) , the other two major shareholders of Zhong'an insurance, remained unchanged, both of which were 10.2054%.
In this regard, ant group replied that this reduction is a normal investment decision. Although its shares in Zhong'an have been reduced, the strategic cooperation relationship between the two sides will remain unchanged. Ant is optimistic about the long-term development of Zhong'an as always.
Before Zhong'an insurance was listed, ant financial services, Tencent and Ping An insurance accounted for 16.04%, 12.09% and 12.09% respectively. So far, the shareholding proportions of the three major shareholders decreased by 5.67%, 1.89% and 1.89% respectively.
Over the past year, Zhongan insurance's share price has shown an obvious downward trend. In January 2021, the share price of Zhong'an insurance reached a high of HK $66 / share, and then fell all the way. As of the closing on January 19, 2022, the share price was only HK $27.8 / share, with a decline of more than 50% in one year.
Public information shows that in recent three years, Zhong'an insurance and ant group have signed an Internet platform cooperation framework agreement involving major related party transactions. During the agreement period, ant group and its subsidiaries provide platform services on health insurance, air travel insurance, e-commerce and other forms of insurance, and Zhong'an pays platform service fees to ant group or its subsidiaries. The upper limits of related party transactions under the three-year agreements in 2020, 2021 and 2022 are RMB 2.01 billion, RMB 3.048 billion and RMB 1.517 billion respectively.
In terms of investment in property insurance companies, ant group has realized "one participation and one control" of Zhong'an insurance and Cathay Pacific Property Insurance. In 2013, ant financial, as the main sponsor, jointly initiated the establishment of Zhong'an online Property Insurance Co., Ltd. with Tencent, Ping An Insurance (Group) Company Of China Ltd(601318) and other institutions. As of this reduction, ant financial holds 13.53% equity of Zhong'an insurance, which is the single largest shareholder. In addition, in July 2016, Cathay Pacific Property Insurance introduced ant group's strategic investment and was approved to increase capital by 833 million yuan. Ant group became its controlling shareholder with a 51% shareholding ratio.
