Kunlun Health FireWire increase capital risk crossing crisis "myopia risk" is the nominal

The surge of insurance premiums increases the cost burden of the Kunlun health, and the yield of myopic products is less than that of the fixed interest rate. Reporter Cai Jun/Wen March mid-April, Kunlun health insurance by the CIRC to produce a regulatory letter. The new branch was ordered to suspend for two consecutive years because the solvency ratio was below the requirement. To this end, the company's major shareholders in a timely manner to increase capital plans, and the Ministry of Finance returned tens of millions of dollars in business tax, Kunlun healthy and smooth escape. However, this does not cover the company's operating income decline last year, net profit loss situation. At the same time, in the increase in the rate of premiums in the Great Leap Forward, the Kunlun health of a myopia insurance (assured) products are also accused of the same name. High frequency increase in the middle of March, a paper supervision letter to the Kunlun health problems exposed under the magnifying glass. According to the contents of the regulatory letter, Kunlun Health due to solvency adequacy ratio than the regulatory requirements, was ordered to suspend the establishment of branch offices. The same situation, but also occurred in all life, the Great Wall, happiness life, and other 3 institutions. Among them, the most severe of the happy life, was forced not to open new business. The Kunlun Health Annual report shows that nearly 90% of the company's premium income last year came from the group risk channel. Among them, solvency adequacy rate is only 32.68%, far lower than the CIRC I class 100%, class II 150% "red line." The inefficiency of the solvency ratio is mainly due to a rise in the company's minimum capital. 2010, 2011, the actual capital of 149.169 million yuan, 12.286 million yuan, in real capital unchanged, business development faster impact, Kunlun Health 2011 years of the minimum capital rose twice times, resulting in solvency from the original 727% down to 22.4%. At the end of 2012, the real capital of Kunlun health was 27.2 million yuan, the minimum capital was 83.24 million yuan, and the solvency adequacy rate was only 32.68%. In fact, the company has been continuously in 2011, 2012 solvency indicators, lower than the regulatory requirements of the red line. Up to now, the company in Beijing, Shanghai, Guangdong, Zhejiang, Shandong and other 6 branch offices, but due to the continuous growth of business volume, the new branch to become the key to the healthy growth of the Kunlun. The ban on a paper regulatory letter has become the biggest obstacle to development. In this context, the replenishment of capital became the company's urgent breakthrough. It is reported that since 2009, Kunlun Health has a total of 4 increase in the rate of action frequency is once a year. Several times, the registered capital has grown from 240 million yuan to 440.91 million yuan. Business growth, Kunlun Health last year business growth is very fast. Last year, the company's premium income from 700 million yuan over the 1 billion yuan mark, two central Branch Company was approved to build a center branch company, a marketing service department opened. On the eve of the production of the regulatory letter, Kunlun Health has decided to start the capital increase plan. The specific plan is to increase the capital on the basis of last December, the large shareholder increased funds to 521 million yuan, in order to support business development, to ensure that solvency compliance with regulatory requirements. According to the company's ownership structure, Shanghai Zhongke Chen Chemical Co., Ltd.,Shanghai Xin Cheng Investment (Group) Co., Ltd., Shenzhen Jia Hao Sheng Industrial Co., Ltd. and other eight enterprises to form the Kunlun health insurance. Last August, one of the shareholders of the Shanghai Association of Real Estate Development Co., Ltd. will be 30.39 million shares, 13.36 million shares transferred to Hangzhou Yong-Yuan Network Technology Co., Ltd., Beijing Jinyuan Times Shopping Center Ltd. After the assignee, Yong-yuan network shareholding ratio of 17.37%, Jinyuan era, shareholding ratio of 19.7%, with the HS real estate completely out of the company. In mid-April this year, the Kunlun health to the CIRC reported the "on the application for additional registered capital" received approval. The company's capital increased to 521 million yuan. This is the 10th in the year after Taiping Life, Heng Ann Standard, HSBC life, and other 9 companies to complete the increase in capital insurance companies. At the same time, timely policies help to climb out of the mire. The Ministry of Finance issued this year on the "exemption from the sales tax of more than one year return of life insurance products List", the name of the Kunlun health impressively in the column. The company was returned a business tax of about 29.87 million yuan, and timely replenishment of capital, after the calculation of caliber, Kunlun health solvency adequacy rate will reach about 205%, to meet the CIRC stipulated solvency Ⅱ class standards, temporarily through the crisis. Net loss amplification as of last year, the company realized operating income of 387 million yuan, net profit loss of 125 million yuan. Income year-on-year decline of up to 1.3 times times, net profit in 2011 after the loss of 113 million yuan, last year continued to enlarge 12 million yuan. The profit statement shows that the surge in the return of insurance is the main reason for the increase of the health cost of Kunlun. In 2011, the company refunded 261,400 Yuan, but to last year, this data has soared to 1.0725 million yuan. However, in terms of premium income, the company's growth rate of 1.86 times times last year, the scale continues to stride forward. According to the annual report, the company last year's premium income of the top 5 products are Kunlun Jian Li Bao (B) Long-term care insurance (universal type), Kunlun Jian Li Bao (B section upgrade version) long-term care insurance (Universal), Kunlun Health Insurance Co., Ltd. steady profit long-term care insurance, Kunlun Comprehensive supplementary group medical Insurance, Kunlun Health Insurance Co., Ltd. Health benefits (G) Long-term care insurance (universal type). The total premium income of 5 products is 981 million yuan. Among them, Jian Li Bao (B) The most income, reached 453 million yuan, accounting for 5 of the total of nearly half. As can be seen, health insurance has become a key breakthrough for the company. Kunlun Health Chairman Lin Yao has said that the current health insurance development in China is still lack of professional operating environment, hope in the tax concessions, concession areas (such as the Medical Savings Fund pilot), special financial subsidies can be introduced to stimulate policy. However, the Great Leap Forward on the road, a four years ago, the introduction of myopia insurance, recently was a storm. The contents of the product show that the 3-16-year-old, naked eye vision of more than 4.2 of the body health can be insured. One-time payment of a certain amount of premiums, if 25 years of age after a professional body testing, in line with the "low vision" of the determination, you can get a maximum of 100,000 yuan of compensation.The term "low vision" is defined in the insurance terms as "monocular naked eye Vision less than 5.0". The requirement for eyesight is only 4.2, and the compensation standard is below 5.0. According to the national standard eyesight Chart, 5.0 belongs to the standard eyesight. The compensation standard is even lower than the insurance standard, that is to say, the odds are basically up to 100%. Four years later, the reporter found that the yield of the product is less than the fixed interest rate. For the insured, the one-time payment of a certain amount of premiums, to wait for less than 9 years, more than 22 years, and to be short-sighted to get back 100,000 yuan. Compared to the same period of banking products, the product is not in name.