China Life insurance 1.078 billion yuan illegal funds were investigated

China Network January 31 audit findings of the audit report 2011 The 4th issue of January 31, the Audit commission in China Life Insurance (Group) Company 2009 annual balance of assets and liabilities of the audit to investigate the illegal funds 1.078 billion yuan. Among them, there are 698 million illegal problems in insurance management, and 380 million yuan in accounting for financial revenue and expenditure. The announcement revealed that the management of China Life Insurance Group in the management of irregularities and regulatory problems, has been transferred to the CIRC to deal with, the financial revenue and expenditure of the violation of the problem, the law issued an audit decision, and proposed to investigate the responsibility of the relevant personnel.　　The full text of the announcement is as follows. China Life Insurance (Group) Company 2009 annual balance of profit and loss audit results (January 31, 2011 notice) According to the "PRC Audit Law", the Audit commission in 2010 to China Life Insurance (Group) Company (hereinafter referred to as Guo Shou Group)　　and its 5 subsidiaries of the 16 branches of the 2009 annual balance of income and loss of assets were audited. First, the basic situation of the National Longevity Group subordinate 6 subsidiaries and 1 affiliated institutions.　　According to the financial statements of Guo Shou group, as at the end of 2009, the group combined assets of 1,554,645,000,000 yuan, total liabilities of 1,421,396,000,000 Yuan, the owner's equity of 133.249 billion yuan, the current operating income of 389.504 billion yuan, the total profit of 40.333 billion yuan.　　Audit results show that 2009, the National Longevity Group Business Development Faster, group control system gradually improved, risk prevention system is basically established and constantly strengthen. First, the rapid growth of various business, the effectiveness of the use of funds is obvious. According to the data and annual report of Guo Shou Group, 2009, the combined premium income of Guo Shou group was 302.992 billion yuan, the domestic life insurance market share accounted for 38.1%, maintain the dominant position in the market, and the investment income (including fair value change profit and loss) was 86.826 billion yuan, which grew 43.39%.　　The yield of total assets before impairment is 6.12%. The second is to actively dissolve the historical baggage, earning capacity increased year by year. By promoting the development of life insurance industry, improving the utilization rate of funds, and strengthening the management of retained assets and retained business funds, Guo Shou group can effectively resolve the large margin loss problem of retained business and assets formation before restructuring.　　According to the annual report of the National Longevity Group, as at the end of 2009, Guo Shou Group merged the unallocated profit to increase by 82.552 billion yuan at the end of 2005, and realized by negative positive. Third, the establishment of multi-level product system, group management and control system gradually improved.　　Guo Shou Group in personal insurance, property insurance, endowment insurance and other aspects of the establishment of a multi-level product system, the cumulative 160 million people to provide insurance services, while strengthening the group of subsidiaries control, and constantly improve the risk prevention system, information systems can better meet the needs of business development.　　Second, the audit found that the main problems and rectification of the situation (i) the insurance business management in the violation of the problem of 698 million yuan. 1Illegal underwriting or surrender of 242 million yuan, mainly to the fragmented customer premiums in the name of the unit insurance, commitment to fixed income or relaxed conditions of underwriting, retirement and other issues.　　such as the National longevity group in Shandong, Anhui, Sichuan, Jiangsu and other 4 regional branches, since 2009 will be charged with the fragmented customer premiums in the name of the unit insured group insurance 27.9017 million yuan.　　In response to the above problems, the National Longevity Group subsidiary branch of the total cessation of the issue of the more concentrated wing Tai Group annuity Insurance, will involve the gradual release of the issue of the contract, the 30 business owners and handling personnel to give corresponding punishment. 2. False increase in premium income of 278 million yuan, mainly in the form of recycling insurance or employees to buy a reinsurance and reinsurance to increase the cost of income.　　such as the National Longevity Group Qiqihar Branch in order to complete the annual plan of insurance business, December 2009 by individual employees to buy "Guo Shou Rui Feng Insurance" 10.554 million Yuan, January 2010 concentrated retreat, virtual increase in premium income of 10.554 million yuan.　　In view of the above problems, the subsidiary branch of Guo Shou Group has modified the examination system, established the tracking mechanism, and dealt with and punished 8 related responsible persons. 3. Violation of payment and claims 113 million yuan, including the illegal generation of insurance premiums, relaxed payment conditions of 112 million yuan, a false settlement of 770,000 yuan is mainly used for the insured and insurance company expenses.　　such as the National Longevity Group, Wuxi branch of some business staff, the 2009 's insured to receive 15.8016 million yuan of funds.　　In view of the above problems, Guo Shou Group branch has recovered the false claims funds 700,000 yuan, and 7 related responsible person to give treatment and punishment. 4. The illegal payment of fees and commissions of 65.0653 million yuan, is mainly illegal to pay high fees, to the unqualified agent to pay the fees or to the formal staff to pay commissions and so on.　　such as the National Longevity Group Chongqing Branch, in 2009 to 144 full-time employees pay commission of 1.5962 million yuan.　　In view of the above problems, Guo Shou Group branch has terminated the cooperation with the problem intermediary agencies, the payment of fees has been adjusted to the relevant accounts, and 24 of the relevant responsible person to give treatment and punishment.　　In addition, the Guo Shou group also exists beyond the scope of the CIRC to carry out foreign investment issues. (b) Financial revenue and expenditure accounting aspects of the violation of 380 million yuan. Among them: accounting is not accurate 375 million yuan, set up "Coffer" 5.1117 million yuan.　　For example, the Wuhan branch of Guo Shou Group in 2009 will be the student ping-an insurance premium income of 1.0351 million yuan into the personal account, of which 254,700 yuan of funds whereabouts unknown.　　In response to the above problems, the National Longevity Group Branch has adjusted the relevant accounting accounts, the payment of 18.4613 million yuan, the recovery of funds 262,500 Yuan, 105 related responsible person to be dismissed and other disciplinary measures. (iii) There are weaknesses in internal management. In the area of business management, some of the organizations are not standardized business operations, the receivable premium management is not in place to the agent company misappropriation of premiums and some rules and regulationsImperfect and so on. In the management of data files, there are some problems, such as incomplete meeting minutes, loss of insurance policy, inconsistency of items purchase list and physical acceptance order.　　In view of the above problems, the National Longevity group subordinate branches to 4 related responsible person to give treatment and punishment. Guo Shou Group on the audit identified the problem attaches great importance to a special meeting to study the deployment of the organization system at all levels to do rectification work. Guo Shou Group will audit the problem of rectification work and enhance compliance with the Law management awareness, enhance the whole system management and internal control level of the combination, strengthen the staff's compliance management education, standardize the business operation process, again organize self-examination work, further improve the internal rules and regulations, formulate or amend the　　Non-silver mail intermediary Business Sales management measures, such as more than 150 systems. III. Audit processing and recommendations on the above issues, the Audit Commission has issued a report in accordance with the law. The problem of irregularities in the operation and management of Guo Shou Group and the irregular management have been transferred to the CIRC to deal with the irregularities in the financial revenue and expenditure, the audit decision is issued according to law, and the state Life group is advised to hold the relevant personnel accountable.　　At the same time, the Audit Commission recommended that Guo Shou group should further strengthen the consciousness of compliance management, improve corporate governance structure, strengthen internal control, give full play to the overall advantages of the group, and promote the development of insurance business. The Audit Commission will continue to follow up and make timely announcements on the unfinished business of Guo Shou group.