Seven Wolves Performance Continued Weak Pformation Ready To Sell Insurance?

Men's clothing brand seven wolves participated in the establishment of the reinsurance company has been approved by the China Insurance Regulatory Commission recently.

The seven wolves hope to bring long-term investment income to the company. In the view of the insurance industry, the insurance fund is a liability operation. The investment and reinsurance company needs the continuous capital injection ability of the shareholders, and the profit cycle is very difficult to consider.

This is not a very safe business for seven wolves who need new businesses to boost their performance.

Main industry continued weak pformation "to look at money"

For the first time in 2013, its performance declined, revenue dropped by 20.23% and net profit decreased by 32.44%.

Since then, the seven wolves no longer expand and turn off inefficient shops, but the effect is not obvious.

According to the latest data, the total revenue of seven wolves in 2015 was 2 billion 460 million yuan, an increase of 3.02% over the same period last year, and the total profit was 257 million yuan, down 26.15% from the same period last year. The net profit was 270 million yuan, a decrease of 5.63% compared with 290 million yuan in the same period last year.

Seven wolves said: the company is still in the process of restructuring and pformation of wholesale mode, the original business revenue and profits have been affected.

The main business has encountered bottlenecks, so that the seven wolves began to adjust their strategies.

The company that makes and sells is pformed into a company of "industry + investment".

In 2014, the seven wolves invested 300 million yuan to cooperate with Hong Kong capital to launch the domestic industry fund, and planned to invest in large consumer industries such as clothing, accessories, food, supermarkets and so on.

At the beginning of 2015, when the direction was clear, it would take part in the establishment of the Shenzhen Qianhai Efficient Finance Holding Ltd (provisional name, hereinafter referred to as "Qianhai reinsurance company") with its own capital of 315 million yuan, which will account for 10.5% of the registered capital of the reinsurance company.

In July 2015, seven wolves announced that taking into account the high price of commercial property, the huge change of business mode, and the extensive growth mode of over reliance on channel expansion, the company decided to prepare for the purchase of commercial property in order to expand the company's existing marketing network layout and structure of 1 billion yuan in the balance of 1 billion 766 million yuan, and change it into a wholly-owned subsidiary to invest in some garment industry and related fashion industry and retail consumption industry.

By the end of 2015, the company announced that it would continue to use 2 billion yuan to idle its own funds for investment and financial management.

In March 27th this year, Qianhai reinsurance company was approved by the CIRC.

Cross border capital is the main reason why seven wolves continue to be depressed.

The main business of Qianhai reinsurance company includes all kinds of property and accident and health reinsurance business, life reinsurance business, capital utilization business approved by China Insurance Regulatory Commission, and other insurance related business approved by the CIRC.

The traditional garment industry is being squeezed by the fast fashion industry, and many enterprises are in pition.

Women's clothing brand has also made investment arrangements for fashion clothes, maternity products, fashion entertainment and other popular consumption areas.

Testing the ability to inject capital

The seven wolves will not enter the reinsurance sector without risk.

Ping An Securities analyst paid Wen Chao: according to the "new country ten plan", China's domestic reinsurance in 2020.

It will reach 330 billion yuan, which will undoubtedly increase the attention of reinsurance.

Coveted the policy bonus and the effect of insurance back feeding, private capital has set off an upsurge of entering the reinsurance field.

A reinsurance practitioner: an increase in the reinsurance body on the market may face a rise in the cost of obtaining insurance policies, and some market share is forced to be separated from each other.

Swiss Reinsurance (China) President Lu Qin: for reinsurance companies, in addition to the use of capital, the technical requirements for model analysis and data accumulation are also very high. Many direct insurance companies have more intellectual support for reinsurance companies.

Cheap rates can be achieved without cost, but technology that is combined with years of data and experience can not be provided by anyone.

It is worth mentioning that, because the insurance fund is in debt operation, the investment and reinsurance companies need the continuous capital injection ability of the shareholders, and the profit cycle is very difficult to consider, which also tests the actual operation ability of the private capital.

PS: reinsurance is to provide insurance coverage for insurance companies, that is, when undertaking large projects, insurance companies will shift some risk of underwriting objects to reinsurance companies in order to reduce risks.

Therefore, premium income does not match the size of the insurance market. When catastrophe strikes, the function of reinsurance appears to be negligible.

At present, there are only three professional reinsurance companies in China, namely, Zhong He Re Group, Taiping reinsurance and PICC Reinsurance.

However, the potential of the reinsurance market is huge, and the "ten new countries" of the insurance industry also clearly point out that we should speed up the development of the reinsurance market, increase the main body of the reinsurance market, and develop the regional reinsurance center.