Yong An Insurance Saw Better-than-Expected Performance

Yong An Insurance, the sole western China-based property insurer with a nationwide license, saw a 400% growth in last-year profits to CNY 200 million.

As at August 31, 2007, the registered capital of the Xi'an-based insurer was only CNY 310 million; In October 2007, the insurer carried out the first round of capital replenishment. After the move, it saw the capital base increase to CNY 1.6 billion by the yearend of 2007. In this way, the solvency crisis of the company was temporarily solved.

In order to achieve the sustainable development, Yong An Insurance in September 2009 launched the capital replenishment for the second time, after which, the registered capital of the company rose up to CNY 2.6 billion. As a private enterprise, FOSUN International Limited became the second largest shareholder with a 20% stake in the insurance company. For the first time, Yong An Insurance made a turnaround in 2009, with the whole-year profits of CNY 100 million.

Currently, Yong An Insurance operates 794 outlets across 16 provinces and cities. During the first 11 months of 2010, the property insurer gained the premium revenues of CNY 5.35 billion, up 5% year on year.

Presently, the company expects to get listed at an appropriate time and is busy with the preparation work accordingly. In the future, it hopes to be engaged in the life insurance, investment, and assets management businesses as a comprehensive insurance group.

This year, 15 insurance companies of China's Mainland applied to China Insurance Regulatory Commission for opening branches. Anbang Life Insurance Co. has been approved to open four branches in Shanghai, Henan, Hubei and Liaoning respectively; and Hexie Health Insurance Co. has also received the regulatory approval for it to open branches in Hebei, Guangdong and Sichuan respectively. Beijing-based Happy Life Insurance Co. has been given the approval to prepare for a Henan Branch and a Shanxi Branch; China Post Life Insurance Co. has won the approval for it to open a branch in Zhejiang and another branch in Jiangsu; the financial center Shanghai-based Sino Life Insurance Co. is allowed to open branches in Guangxi and Xinjiang, two autonomous regions of the country; Aeon Life Insurance Company is permitted to open branches in Dalian and Sichuan respectively; and another one called Sun Life Everbright Life Insurance Co. is approved of a branch in Sichuan and one in Shanxi.