Log in to Sina Finance APP and search [Xinpi] to view more evaluation grades Source: Blue Whale Finance Since the first quarter of 2022, the comprehensive risk rating of Everest Property Insurance has been downgraded from B to Category C, and the solvency is not up to standard.
(Picture source: Visual China) After the announcement of a change in registered capital was disclosed in July 2023, and the registered capital was planned to be changed from 1 billion yuan to 1.08 billion yuan, Everest Property & Casualty Insurance Co., Ltd. (hereinafter referred to as \”Everest Property & Casualty Insurance\”) ) There has been no news of progress on this matter.
Nine months later, on April 24, the company disclosed another relevant announcement, but the content was not that the capital increase was approved, but that the board of directors reviewed and approved the \”Proposal on Review of the Supplementary Plan for the \”New Capital Plan\”\” , the original capital increase amount remains unchanged, and some matters are supplemented to promote the implementation of subsequent capital increase matters.
At the same time, Everest Property & Casualty Insurance stated that in accordance with the relevant requirements of the \”Notice on Further Strengthening the Disclosure of Equity Information of Insurance Companies\”, other matters will be disclosed after the capital increase is further determined.
For Everest Property & Casualty Insurance, increasing capital and replenishing blood is a top priority.
Established in May 2016, Everest Property & Casualty Insurance is registered in Lhasa, Tibet.
Looking back, Everest Property & Casualty Insurance has experienced many setbacks since its establishment. In 2018, it was suspended for a month due to improper classification of product attributes and other issues, and then was suspended again for a month due to unfavorable handling and rectification of relevant responsible persons.
During the same period, Everest Property & Casualty Insurance fell into management turmoil.
In 2018, Everest Property & Casualty Insurance fired President Li Geng from his post. It was reported that the dismissal was due to \”infighting\” between the company and then-chairman Chen Kedong.
One year later, Chen Kedong resigned, and Ren Xiancheng served as the interim head of the Everest Property & Casualty Insurance Board of Directors. This was extended three months later, and Peng Xifeng was appointed as the interim head of the management layer to act as president. It was not until 2020 that Peng Xifeng was officially appointed as general manager. batch.
The position of chairman has always been acting on behalf of the company. In 2022, the board of directors of Everest Property & Casualty Insurance was reshuffled and director Wang Jian has been acting as chairman.
In terms of performance, Everest Property & Casualty Insurance has always been in the red from its establishment to 2021.
In 2022, Everest Property & Casualty Insurance made a profit for the first time, with a net profit of 5.353 million yuan. However, in 2023, Everest Property & Casualty Insurance suffered a loss again, with a net loss of 15.7626 million yuan for the year.
In terms of premiums, there has been no breakthrough. Insurance business income in 2023 was 565 million yuan, which was not much higher than the 416 million yuan in the first full year of 2017.
Starting from the first quarter of 2022, the comprehensive risk rating of Everest Property & Casualty Insurance will be transferred from B to Category C, and it will be included in the queue of insurance companies with substandard solvency standards.
At that time, Everest Property & Casualty Insurance stated that in order to reduce risks, it would focus on improvements in the relatively weak aspects of liquidity risk and operational risk.
In terms of liquidity risk, we have strengthened the collection work for premiums and accounts receivable, and cash flow has turned to positive inflows by the end of the half year; in terms of operational risk methods, we have focused on improving corporate governance and capital utilization issues, focusing on promoting the capital increase work. conduct.
As of the latest comprehensive risk rating, that is, in the third quarter of 2023, Everest Property & Casualty Insurance\’s rating is still Category C.
According to a notification from the regulatory authorities, the risks of Everest Property & Casualty Insurance in the third quarter are mainly reflected in: First, the solvency adequacy ratio of capitalizable risks is reduced and endogenous capital is insufficient; second, the insurance business line risks in operational risks have increased compared with the previous quarter, mainly The reasons are that the sales staff turnover rate is high, the proportion of underwriting and claims underwriting staff who have worked for more than three years is low, and the development deviation rate of reported outstanding claims reserves is 7.16%, which is a large deviation; thirdly, reputational risk has increased compared with the previous quarter. .
Everest Property & Casualty Insurance also proposed improvement measures accordingly.
In terms of capitalizable risks, we will continue to improve the solvency adequacy ratio by strengthening accounting operations and promoting capital increase and share expansion.
In terms of operational risks, the management and training of sales personnel will be strengthened to improve the retention rate of underwriting and claims personnel.
In terms of reputational risks, we urge the rectification of events that trigger public opinion.
In terms of corporate governance, we will continue to promote follow-up work on the capital increase.
As of the end of the fourth quarter of 2023, the core and comprehensive solvency adequacy ratios of Everest Property and Casualty Insurance were both 130.12%, the comprehensive ratio was 109.37%, the investment return rate was 3.53%, and the comprehensive investment return rate was -0.03%.
