After Tencent became a foreign investment and became a joint venture, Samsung P&C Insurance (China) Co., Ltd. (hereinafter referred to as "Samsung P&C") faced another major change. On September 5, Samsung Property Insurance announced that Ji Qingxie resigned from the position of general manager, and appointed as Huichuan as the interim head of the company, acting as the general manager.
industry insiders said that the first increase in capital and the arrival of heavyweight executives shows the importance of Tencent, the new shareholder of Samsung P&C Insurance.
Tencent executive Ren Huichuan as interim head
On September 5, Samsung P&C announced that, after the 21st meeting of the company's sixth board of directors, Ji Qingxie resigned as general manager, and appointed Huichuan as the company's interim person in charge, acting on his behalf General manager authority .
Ren Huichuan is a familiar face in the financial circle. Ren Huichuan joined China Ping An in 1992, and successively served as the deputy general manager, general manager and vice chairman of China Ping An. China Ping An once commented that he is an important participant and contributor to Ping An 's 30-year achievements. According to Ping An’s 2019 annual report, Ren Huichuan’s salary reached 7.1483 million yuan (before tax). In June 2020, Ren Huichuan, who was once regarded as " Ma Mingzhe 's successor", "Ping An Young Marshal", and Ping An Group "Prince", turned around and joined Tencent. is currently serving as the senior consultant of Tencent Group and a Hong Kong futurist. Chairman of Cheng Reinsurance Co., Ltd.
Regarding Ren Huichuan's appointment as the interim person in charge, Samsung P&C said that Ren Huichuan has very rich experience in the insurance industry, is familiar with various insurance businesses, and has outstanding business and management capabilities. Ren Huichuan acted as the general manager, and took full charge of the company's production, operation and management.
What will be the impact of Ren Huichuan joining Samsung P&C Insurance? Song Qinghui, a famous economist at , pointed out that for Samsung P&C Insurance, the addition of Ren Huichuan, a "big man" who has dual management experience of a large insurance group and Internet Finance, can bring a positive impact to Samsung P&C Insurance. On the one hand, it is conducive to expanding the marketing channels of Samsung Property & Casualty Insurance, and on the other hand, it is also conducive to injecting Internet genes into it, laying the foundation for expanding market influence.
Ren Huichuan served as the interim head of Samsung P&C Insurance, which is not unrelated to Tencent's official becoming the second largest shareholder of Samsung P&C Insurance recently.
In August of this year, Shanghai Banking and Insurance Regulatory Bureau approved Samsung Property Insurance to increase its registered capital by about 551.7 million yuan. After the capital increase of , the registered capital of Samsung Property & Casualty Insurance changed from 324 million yuan to about 875.7 million yuan. Among the new shareholders, Shenzhen Tencent Domain Computer Network Co., Ltd. invested about 280 million yuan, and the shareholding ratio after the capital increase was 32%. Samsung Property & Casualty has also changed from a wholly foreign-owned enterprise to a Sino-foreign joint venture.
continued to make profits but the premium scale remained stagnant
Public information shows that in 1995, Samsung Fire & Marine Insurance of South Korea set up a representative office in Beijing. insurance company. In May 2010, it was renamed Samsung Property & Casualty Insurance by Samsung Fire & Marine Insurance (China) Co., Ltd.
Image source: Samsung P&C official website
Like other wholly foreign-owned property and casualty insurance companies, Samsung Property & Casualty is also facing the development status of few branches and small business scale.
Combing, Samsung Property & Casualty Insurance has been in a profitable situation since 2009. However, the development scale of has not made a significant breakthrough, the insurance business income is hovering at 1 billion yuan, and the profit scale has not exceeded 100 million yuan. From 2019 to 2021, the annual insurance business income of Samsung Property & Casualty Insurance was 982 million yuan, 1.012 billion yuan, and 904 million yuan. The net profit was 55.778 million yuan, 65.2747 million yuan and 72.84 million yuan in sequence.
In the first half of 2022, Samsung Property & Casualty achieved an insurance business income of 302 million yuan, a year-on-year increase of 0.38%, and a net profit of 66.13 million yuan, a year-on-year increase of 17.8%. In terms of branches, Samsung Property & Casualty currently only has 6 branches in Beijing, Shenzhen, Jiangsu, Qingdao, Tianjin and Shaanxi.
McKinsey pointed out in the report "New Opportunities for China's Financial Opening up" that foreign financial institutions have insufficient estimates of the uniqueness and complexity of the Chinese market, and the degree of localization in terms of products, services, institutional mechanisms and talent systems is insufficient. As its business has been stagnant for many years, the global status and importance of the Chinese market in its institutions have also declined year by year, resulting in the flow of resources to other markets. The halo effect of the brands of foreign institutions among local Chinese customers has gradually diminished.
However, for Samsung Property & Casualty Insurance, this situation is expected to change after acquiring Tencent's stake. Song Qinghui said that 's investment in Samsung Property & Casualty Insurance will hopefully open up business development space and bring imagination space for its future development. In the future, Tencent is expected to give Samsung P&C resources in terms of traffic and technology. Some people in the industry also said that the dispatch of senior consultant Ren Huichuan as the interim person in charge shows the importance of Tencent, the new shareholder of Samsung Property & Casualty Insurance. A reporter from Beijing Business Daily sent a letter to Samsung Property Insurance on issues related to personnel changes and Tencent's shareholding, but no reply was received as of press time.
reporter | Chen Tingting Li Xiumei
editor | Wang Naixin
pictures | Samsung P&C official website screenshots, Yitu.com, Visual China
