Recently, Taikang Pension Insurance Co., Ltd. (hereinafter referred to as “Taikang Pension”) announced a plan to increase its registered capital by 2 billion yuan to meet the business development and solvency needs of Taikang Pension. This capital increase will raise the company’s registered capital from 9 billion yuan to 11 billion yuan.
According to the announcement, the entire amount of this capital increase will be contributed by the shareholder, Taikang Insurance Group, in the form of currency. Taikang Asset Management Co., Ltd. (hereinafter referred to as “Taikang Asset”) will not participate in this capital increase, and no new shareholders will be introduced. All funds will be included in the registered capital of Taikang Pension.
After the capital increase is completed, the registered capital of Taikang Pension will increase from 9 billion yuan to 11 billion yuan. The shareholding ratio of Taikang Insurance Group will rise from 99.33% to 99.45%, while the shareholding ratio of Taikang Asset will decrease from 0.67% to 0.55%.
This is the fourth capital increase for Taikang Pension since 2023, including two in 2023 and one in 2024. In April 2023, Taikang Pension announced an increase of 1 billion yuan in capital, raising its registered capital to 6 billion yuan. In August of that year, Taikang Pension announced an additional capital increase of 1 billion yuan, raising its registered capital to 7 billion yuan. In April 2024, Taikang Pension announced an increase of 2 billion yuan in capital, raising its registered capital to 9 billion yuan. All four capital increases were fully subscribed by Taikang Insurance Group.
Taikang Pension was established in August 2007 with a registered capital of 9 billion yuan and is a professional pension insurance company under the Taikang Insurance Group. It has established 34 branches across the country and is dedicated to providing services such as enterprise/occupational annuities, group and individual pension insurance, group and individual health insurance, group life insurance, and accident insurance for a wide range of enterprises, institutions, and their employees.
In recent years, Taikang Pension’s performance has been under constant pressure. According to the annual report data disclosed by the company, in 2023, Taikang Pension suffered a loss again after turning a profit in 2022 (with a net profit of 120 million yuan), with an annual loss of 1.97 billion yuan. In 2024, Taikang Pension suffered a loss of 1.407 billion yuan for the whole year.
In terms of personnel, Taikang Pension not only made a change to its chairman in the first half of 2024 but also appropriately adjusted the positions of the Chief Risk Officer, Chief Actuary, Financial Officer, and Chief Investment Officer since the second half of last year.
In the first quarter of this year, Taikang Pension achieved insurance business income of 7.597 billion yuan and a net profit of 347 million yuan. As of the end of the first quarter, the core solvency adequacy ratio and comprehensive solvency adequacy ratio of Taikang Pension were 142.41% and 239.81%, respectively. The results of the last two comprehensive risk ratings were both AA.
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