Chinanews.com, February 22. According to the website of the China Banking and Insurance Regulatory Commission, on February 22, 2020, the China Banking and Insurance Regulatory Commission (hereinafter referred to as the China Banking and Insurance Regulatory Commission) issued an announcement, in accordance with Article 147 of the Insurance Law, from Anbang Insurance Group Co., Ltd. (hereinafter referred to as Anbang Group) split up the newly established China Insurance Group Co., Ltd. (hereinafter referred to as China Insurance Group) has basically been able to operate normally, and the China Banking Regulatory Commission has ended the takeover of Anbang Group in accordance with the law.
On February 23, 2018, the former China Insurance Regulatory Commission issued an announcement. In view of the existence of Anbang Group's operating activities in violation of the Insurance Law, which may seriously endanger the company's solvency, in accordance with Article 144 of the Insurance Law, it decided to The Group implemented the takeover with a takeover period of one year. After the institutional reform of the State Council, the China Banking Regulatory Commission replaced the former China Insurance Regulatory Commission to perform the takeover duties of Anbang Group in accordance with the law, and promoted the resolution of Anbang Group's risks. On February 22, 2019, in accordance with Article 146 of the Insurance Law, the China Banking Regulatory Commission decided to extend the takeover period of Anbang Group by one year.
Since the implementation of the takeover, the China Banking Regulatory Commission has promoted risk disposal in an orderly manner according to law. With the joint efforts and support of relevant parties, it has successfully completed various tasks. As of January 2020, the 1.5 trillion yuan of short-term and medium-term financial management insurance issued by the Anbang Group before the takeover had been fully redeemed, no overdue and default occurred, and the legitimate rights and interests of insurance consumers and all relevant parties were effectively protected. The disposal of non-core financial licenses such as Century Securities, State Bank Gold Leasing, and Harmonious Health has been basically completed. Chengdu Rural Commercial Bank has also been listed. The China Banking Regulatory Commission fully cooperated with the judicial authorities to carry out asset recovery, minimizing the losses caused to the company by Wu Xiaohui, the former chairman of Anbang Group.
In order to effectively resolve the risks of the Anbang Group, the China Banking Regulatory Commission has divested Anbang Group's non-case-related assets, approved the establishment of an insurance group for everyone, and legally transferred Anbang Life Insurance Co., Ltd. (hereinafter referred to as Anbang Life Insurance) and Anbang Pension Insurance Shares Co., Ltd. and Anbang Asset Management Co., Ltd., a new property insurance company, to undertake the compliance insurance business of Anbang Property Insurance Co., Ltd. Anbang Group and Anbang Property & Casualty Insurance will be liquidated and cancelled according to law.
Since the establishment of the Everyone Insurance Group, management restructuring and business transformation have achieved remarkable results. The proportion of products with a life insurance coverage of 5 years or more has increased to more than 75%, which is significantly improved compared with the debt structure of the original Anbang Life Insurance, which mainly focuses on short-to-medium-term products. The long-term business of bank insurance term payment starts from zero in 2019. Realized premium income of RMB 5.57 billion. The company actively responds to the needs of social security for the elderly, vigorously explores the business model of elderly care, and pilots the development of elderly care projects in urban core areas to provide urban elderly people with high-quality elderly care services close to their children and hospitals.
At present, every insurance group is actively introducing strategic investors and has basically locked in social investors. The China Banking and Insurance Regulatory Commission will promote the insurance group to maintain its private nature, improve its governance structure, continuously improve its solvency and operating level, strengthen prudential supervision, and promote the company's sustainable and healthy development.
China Banking Regulatory Commission Answers Questions on Ending Anbang Group Takeover
1. What measures have the China Banking Regulatory Commission taken in the past two years to effectively protect the rights and interests of the original customers of Anbang Group?
A: During the first half of 2015 to 2017, Anbang Group sold more than 1.5 trillion yuan of short- and medium-term financial management insurance products, with peak maturity payments and surrenders from 2018 to early 2020. The China Banking and Insurance Regulatory Commission attaches great importance to protecting the legitimate rights and interests of insurance consumers, guiding the company to set up an independent team to specifically advance the payment of existing policies, proactively provide customers with information such as policy expiration reminders, and accumulate 12.5 million person-times. Strictly fulfill all commitments to consumers and pay at the agreed interest rate at the time of contract or sale. As of January 2020, the 1.5 trillion yuan of short-term and medium-term wealth management insurance issued by the Anbang Group before the takeover had been fully redeemed, no overdue and default occurred, and the cash flow payment peak was smoothly passed, which effectively protected insurance consumption. Legal rights. At the same time, the company was guided to continuously establish and improve the consumer rights protection system, clarify the responsibility mechanism, speed up the construction of the system, and carry out special rectification of violations of consumer rights, etc., and continue to promote the implementation of various measures in place.
2. In the process of risk disposal, how does the CBRC adhere to the rule of law and marketization to deal with the risks of Anbang Group?
Answer: The China Banking Regulatory Commission always adheres to the principle of rule of law and marketization to deal with the risks of Anbang Group. On February 23, 2018, the former China Insurance Regulatory Commission issued an announcement announcing the takeover of Anbang Group in accordance with the law. At the beginning of the takeover, a complete set of decision-making mechanisms and operating procedures have been established to ensure that the entire takeover process operates strictly in accordance with the rules. Supervisory agencies and judicial departments cooperate efficiently and comprehensively to implement policies, focusing on stable operations and criminal investigations in one hand to maximize the recovery of losses and eliminate the impact for the company. During the takeover process, the China Banking and Insurance Regulatory Commission fulfilled its commitments in accordance with the announcement, effectively protected the legitimate rights and interests of insurance consumers, and protected the property rights and other legitimate rights and interests of relevant entities on an equal basis in accordance with the law. Introduce professional institutions and business management teams in accordance with market-oriented methods to professionally manage relevant business segments and improve the efficiency of inventory asset management. In strict accordance with market rules, in accordance with the law hired well-known domestic law firms, accounting firms, investment banks and other intermediaries to participate in the restructuring of Anbang Group and lead the insurance group. Throughout the process of conducting the war, we performed relevant procedures in accordance with the law, openly and transparently screened private enterprises with good qualifications, and established a scientific and reasonable equity structure. After repeated negotiations, social investors have now been basically locked. In view of the fact that the newly established insurance group from the Anbang Group has normal operating capabilities, the China Banking Regulatory Commission has ended the takeover of the Anbang Group in accordance with the law.
3. The China Banking and Insurance Regulatory Commission vigorously promotes the adjustment of the business structure and improvement of management of insurance groups. What are the specific results?
A: In the long run, companies can only turn from danger to safety and sustain healthy development by improving their "blood-making" capabilities. After the establishment of the People's Insurance Group, the China Banking and Insurance Regulatory Commission promoted the company to establish a compliance concept and to conduct business under the guidance of the business philosophy of "adhering to compliance, respecting laws, serving the company, and standing professionally". Resolutely return to insurance protection, completely abandon the development model of the former Anbang Group investment company, and continue to promote business transformation. The proportion of products with a life insurance coverage of 5 years and more in 2019 has increased to more than 75%, which is significantly improved compared to the debt structure of the former Anbang Life Insurance, which mainly focuses on short-to-medium-term products. In 2019, the premium income reached 5.57 billion yuan. Property and casualty insurance companies in the whole year of 2019 achieved a premium income of 4.34 billion yuan, the comprehensive cost rate dropped significantly by 12 percentage points, and operating cash flow turned positive. Endowment insurance companies focus on personal endowment insurance business, with a cumulative business scale of 44.5 billion yuan in 2019. Asset management companies achieved a total return on investment of 8.62% in 2019, and the investment structure continued to improve.
Based on internal and external diagnosis, every insurance group has completely reshaped its management system. Started and completed the organizational structure adjustment and staffing of the group and insurance subsidiaries in batches, and established a market-oriented talent selection mechanism. Improve the governance system, set up a series of professional decision-making and deliberative bodies such as the Consumer Rights Protection Committee, the Asset and Debt Management Executive Committee, the Informatization Working Committee, the Staff Punishment Committee, and the Related Party Transaction Office, and established supporting rules and procedures. Comprehensively organize the board of directors, optimize the management nodes, standardize the management process, for the first time through the preparation of annual financial budgets, set business goals and key indicators to traction business operations, and initially set up an efficient management and management closed loop. At present, the operation and management of every insurance group has been reshaped, laying a solid foundation for the next comprehensive market-oriented and professional development.