Another Insurance Company in Financial Trouble

Last month it was Dragon Life: 183% Becomes -87% and Dragon Life Is Suspended By Regulators.

The firm was inflating the value of its real estate assets and regulators found its capital surplus was a deficit.

The latest firm is Sinatay. The firm has been losing money for 5 years and its solvency ratio has plunged to negative 183%.

信泰人寿-185%偿付能力震惊市场 忙澄清 (Google in some places translates the firm's name as Nobuyasu or Thai)
Recently on Nobuyasu Life "capital 2.91 billion yuan a mystery," "$ 10 billion missing" and "investment plan to bypass the board of directors" and other news for this hotel in Hangzhou in 2007 registered a national insurance company "hanging" in cusp of public opinion.

Nobuyasu Life on the news release stated capital to shareholders hold a positive attitude, and that is certainly higher than the 2.91 billion yuan of new capital. And for $ 10 billion missing, as well as investment plans to bypass the board of directors, the company strongly denied.

These events, explore the message from last November letter from the Thai Life Insurance Regulatory Commission received a series of letters on its multi-drop regulatory solvency letter.

Increase their investment process has not been completed

November 8, 2013, letter Thai Life on the end of the third quarter due to the solvency adequacy ratio was 108.79%, less than 150% due to receipt of regulatory China Insurance Regulatory Commission letter, was suspended additional branches.

December 2013 letter Thai Life Insurance Regulatory Commission received a moratorium on regulatory equity investment letter, and the letter of the Thai Life Insurance regulatory agencies spent a professional audit by PricewaterhouseCoopers.

This year on March 11, 2013 letter Thai Life late fourth quarter actual capital -14.75 billion minimum capital of 793 million yuan, the solvency adequacy ratio was -185.96% belong to the solvency deficiency companies. CIRC issued a regulatory letter to him again, and ordered it to stop developing new business since March 17.

April 30, 2013 letter Thai Life released annual report, said the case late last year, the company has 2.91 billion yuan capital increase arrival, not included in the actual solvency capital is -183%, if you include the company's capital has been credited into account money is 184%. May 11, Nobuyasu Life For questions about media coverage of the capital increase issued a statement, a statement that the capital increase channels for both the old shareholders additional capital, including the introduction of new shareholders, new capital is definitely higher than 29.1 billion.

But now it has not yet put in place 2.91 billion yuan, in this letter, responsible person replies Thai Life Insurance Money Weekly (Micro Signal: money-week) reporters: "There is no finish CIRC's capital increase process, not yet released specific ways and determine the amount. "

"But part of the company's potential investor capital funds already in place, while the former capital increase involving changes in shareholders' equity and corporate governance structure, and therefore must complete the necessary communication within the laws, regulations and regulatory frameworks, by consensus, the old and new shareholders, After the legal process to officially become a shareholder of our company. "

Nobuyasu insurance also said: "still can not tell by the shareholders of the old capital or the new way of introduction to shareholders, but said other strong social capital to meet the regulatory requirements of the open doors."

In fact, premiums, product mix, sales channels, investment capacity and other factors determine the solvency situation of insurance firms. Nobuyasu Life was founded seven years increased from 2007's 015 million yuan in 2013 to 28.6 billion yuan.

But continued losses of five years between 2009-2013, on the loss of 210 million yuan in 2009, dropped to 160 million yuan in 2010, to the 2011 loss of 190 million yuan, in 2012 rose to 217 million yuan. Nobuyasu Life replies, "in 2013, for the turbulent investment market, the company adopted a prudent investment strategy, the overall investment rate of return on the level of an industry." But in 2013 the amount of losses surged to 480 million yuan.

Deny unreasonable product structure

Circle of Life is the law of life insurance normal operation will be profitable for seven years, and believe Thailand is a loss for five years.

In fact, there have been media pointed out, "the letter of the Thai Life loss is the use of short-term products with high price-driven, fast red scale, while supplemented by aggressive investment for high income business model, and the demand for these products the capital structure of larger, these factors led to believe these companies to enter the Thai Life vicious circle. "

Thai Life Insurance aspects reply to this letter Reporter:. "The report's argument is baseless Nobuyasu focus on continuous healthy development of the insurance, take a different sales strategies at different times, in addition to several short-term high-price products, the company's various Business Series main push a variety of cross-product, very well known in the industry as "one million driving" and one million products, are included on cross-type high-value products. "

Nobuyasu Insurance stressed: "The company is building covers accidents, severe illness, health care, retirement and wealth management products and systems are integrated into one turn Internet fragmentation and insurance concept combines recently, the development of personal net worth accounts -." One insurance ", proposed "Premiums fixed sum insured" innovative thinking. "

Mention of insurance products, the increase in premiums should be a good thing, but the media pointed out, "the letter Thai Life has made use of two universal insurance premium products about 9 billion yuan, respectively, to the letter Tai Jinli Shun Tai Jinli to endowment insurance and endowment A section of insurance, the media pointed out: how the funds from the sale of domination has become a major contradiction between shareholders, last July Nobuyasu Life is not operating management shareholders' meeting agreed to change investment plans. "

It has become a premium Nobuyasu Life is another "hidden." In this regard, the financial weekly response Nobuyasu Life (Micro Signal: money-week) Reporter: "2013, letter 泰金利 to endowment insurance and endowment of the original letter 泰金利 to paragraph A of insurance premium income of about 80 billion (" ASBE Interpretation No. 2 "before the implementation of the size of the premium)."

Nobuyasu Life stressed: "The above is not true because our prudent investment in the development of annual asset allocation plan, and after consideration by the Board of Directors, according to the Articles of Association and internal system processes and permissions required to carry out specific investment work, according to all asset allocation. annual plan, there is no change in the situation halfway. "

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