Jul 01, 2024 09:13 PM
Anbang’s Rescuer Seeks to Sell Off Annuity Unit
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The Dajia Insurance Group Building located in Chaoyang district, Beijing on June 25, 2021. Photo: VCG
Dajia Insurance Group Co. Ltd., the state-owned company created to salvage the failed Anbang Insurance Group Co. Ltd., is seeking to offload its 6.3 billion yuan ($867 million) annuity unit as part of continued efforts by the group’s controlling shareholder to exit its investment.
The sale of Dajia Annuity Insurance Co. Ltd. is in the preliminary disclosure stage, which lasts until July 26, according to a recent notice released by the China Beijing Equity Exchange (CBEE). Details have not yet been disclosed about the listing price for the unit or the qualifications that potential buyers will need to bid on the company.
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- Dajia Insurance Group is selling its annuity unit, valued at 6.3 billion yuan ($867 million), as part of its broader divestment strategy.
- The preliminary disclosure period for the sale lasts until July 26, but details on the listing price and buyer qualifications are not yet provided.
- Dajia Annuity Insurance reported 6.3 billion yuan in assets and a net loss of 160 million yuan last year, with strong solvency ratios significantly above industry averages.
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Who’s Who
- Dajia Insurance Group Co. Ltd.
- Dajia Insurance Group Co. Ltd. is a state-owned company established in 2019 to restructure the failed Anbang Insurance Group. It comprises Dajia Annuity Insurance and Dajia Property and Casualty Insurance, among other units. Dajia Annuity Insurance focuses on personal pension insurance and had a net loss of nearly 160 million yuan last year. The group is seeking to offload its annuity unit as part of its controlling shareholder's exit strategy.
- Dajia Annuity Insurance Co. Ltd.
- Dajia Annuity Insurance Co. Ltd., part of Dajia Insurance Group, focuses on personal pension insurance. As of the end of last year, it had 6.3 billion yuan in total assets and reported a net loss of nearly 160 million yuan. Despite this, its core and comprehensive solvency ratios were 386.9% and 403.5% at the end of March, more than double industry averages. The company is currently being sold as part of Dajia Insurance's restructuring efforts.
- China Insurance Security Fund Co. Ltd.
- China Insurance Security Fund Co. Ltd. (CISFC) is a state-owned company managing the insurance industry's bailout fund. In 2019, CISFC invested 20 billion yuan to establish Dajia Insurance to take over and restructure Anbang’s businesses. CISFC aims to exit this investment and has attempted several times to sell Dajia Insurance's major assets, but these efforts have faced challenges due to declining investment returns and the overall market climate.
- Dajia Property and Casualty Insurance Co. Ltd.
- Dajia Property and Casualty Insurance Co. Ltd. is one of the major units of Dajia Insurance Group. Initially, efforts were made to sell it along with other subsidiaries as part of a single entity. However, due to declining investment returns and lack of industry interest, these attempts were unsuccessful, including one effort in 2021 that received no bidders. The property insurance arm is now being sold separately.
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What Happened When
- 2019：
- CISFC invested 20 billion yuan to set up Dajia Insurance to take over and restructure Anbang’s businesses.
- 2021：
- One of Dajia Insurance’s efforts to exit investment didn't get even a single bidder.
- At the end of last year, 2023：
- Dajia’s annuity arm had 6.3 billion yuan in total assets and suffered a net loss of nearly 160 million yuan.
- Early this year, 2024：
- Dajia Insurance started looking for buyers for both its annuity unit and property insurance arm.
- At the end of March 2024：
- Dajia’s annuity arm had core and comprehensive solvency ratios of 386.9% and 403.5%, respectively.
AI generated, for reference only
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