YOUNGOR'S Financial Investment Turns To Industrial Investment

The China Insurance Regulatory Commission recently approved the 3% acquisition of YOUNGOR group's property insurance Limited by Share Ltd, which allowed YOUNGOR to officially become the two shareholder of Zhejiang Merchants Insurance with a 21% stake.

When it comes to the reasons for the acquisition of shares, YOUNGOR said that investment in Zhejiang Merchants Insurance is in line with the company's strategy of "pition from financial investment to industrial investment", showing its good prospects for the development of Zhejiang property insurance.

Zhejiang Merchants Property Insurance is one of the representatives of local property insurance companies. In recent years, the development of local property insurance companies has shown its unique charm.

In the first 10 months of this year, there were 26 listed companies that invested in the insurance industry, and the enthusiasm of other funds to invest in insurance was also very high.

However, the analysis of the industry believes that whether this prosperous investment presentation really means the great development of the insurance industry should be treated dialectically. Comparatively speaking, financial investment pays more attention to the return on investment and is hard to endure for a long period of cultivation. Industrial investment is more important for the long term development of enterprises, and is more conducive to the sustained development of the insurance industry.

In the first 10 months of this year, 26 listed companies announced that they would invest in the insurance industry.

The China Insurance Regulatory Commission recently approved the 3% acquisition of YOUNGOR group's property insurance Limited by Share Ltd, which allowed YOUNGOR to officially become the two shareholder of Zhejiang Merchants Insurance with a 21% stake.

When it comes to the reasons for the acquisition of shares, YOUNGOR said that investment in Zhejiang Merchants Insurance is in line with the company's strategy of "pition from financial investment to industrial investment", showing its good prospects for the development of Zhejiang property insurance.

Zhejiang Merchants Property Insurance is one of the representatives of local property insurance companies. In recent years, the development of local property insurance companies has shown its unique charm.

Recently, the Debon Holding Group Limited has pferred the 45 million shares of Zhejiang Business Insurance (3%) to YOUNGOR group.

After being granted, YOUNGOR group owns 21% of Zhejiang Merchants Insurance and becomes the second largest shareholder of the latter.

For the acquisition, YOUNGOR invested 87 million 750 thousand yuan, the purchase price of 1.95 yuan / share.

Plus the original 18% share, the total investment cost is 357 million 750 thousand yuan.

Speaking of the reasons for the takeover, YOUNGOR said that the insurance industry platform has broad prospects for development in the future, and the internal control system of Zhejiang businessmen's insurance is sound, and the corporate governance structure is perfect, which has great potential for development.

This investment in Zhejiang Merchants Insurance is in line with its strategic plan of "pition from financial investment to industrial investment", "key layout of big finance, big health, comprehensive group and other fields", which is conducive to continuous improvement of strategic layout and comprehensive competitiveness.

The financial indicators of Zhejiang Merchants Insurance show that in 2014, its operating income was 3 billion 380 million yuan, and net profit was 31 million 670 thousand yuan. In the 1-6 months of this year, its actual operating income was 1 billion 810 million yuan, and its net profit was 120 million yuan.

Despite a small steady increase in operating income, net profit increased substantially, and net profit in the first half of this year was 3.8 times that of last year's profits.

At present, the largest shareholder of Zhejiang Merchants Insurance is Zhejiang Commercial Group Limited (directly holding 25.5% stake), and indirectly holding 8% stake through the Zhejiang national Refco Group Ltd, holding 33.5% shares.

The core business includes brand clothing, real estate development and financial investment three blocks.

According to its official website information, its long-term equity investment in its financial sector includes Ningbo bank, yeco technology and Zhejiang Merchants Insurance.

It is the typical representative of the local finance company.

In recent years, local property insurance companies have been established, and most of them are remarkable. This may be an important reason for some funds to choose them as long-term equity investments.

Reporter statistics found that according to the registered places and contributors, there are nearly 10 local property insurance companies, including Jiangxi's Hang Bang property insurance, Shandong Huahai property insurance, Hebei Yanzhao property insurance, Jilin Xinan insurance, Yunnan's Cheng Tai property insurance, Wuhan's Yangtze River property insurance, Guangxi's Beibu Gulf property insurance, Tibet's Mount Everest property insurance and Fujian's Golden Bridge insurance.

Among them, Mount Everest property insurance and channel Golden Bridge property insurance are approved by the CIRC in August this year, the newly established property and casualty insurance company is jointly built by local state-owned capital and private capital.

From the Department of property insurance, which has already started operation, most of them have certain characteristics, and their business performance is also commendable.

For example, Huahai insurance is committed to building a property insurance company with marine and Internet characteristics; Xinan insurance mainly relies on FAW Group's resources to attack the automobile insurance market quickly; Heng Bang insurance is led by the Jiangxi provincial finance department, and Jiangxi provincial administrative assets group company is the main sponsor; Yanzhao property insurance is funded by the key "pioneer" of Hebei provincial enterprises.

From the perspective of local property insurance companies that have already opened, most of them do not operate very long. However, judging from their performance in 2014, some of them have achieved quick profits and some have realized their losses. The overall business situation is improving.

In view of the development of local property insurance companies, the industry analysts believe that on the one hand, it shows that the funds are good for the insurance industry. At the same time, some local enterprises do not exclude two considerations: we hope to set up insurance companies to achieve internal risk digestion, while striving for external markets.

On the whole, China's property insurance market still has much room for development. Many property insurance companies are exploring the development space of other businesses besides vehicle insurance. At present, internet property insurance, shipping insurance, credit guarantee insurance and other businesses are developing vigorously.