Recently, &#34;Insurance Company High Consultant&#34; learned that Liu Zhanzhong, Assistant General Manager and Chief Actuary of China British Life, was taken away while in office.
It is reported that before serving at China British Life, Liu Zhanzhong worked at Evergrande Life and Xincheng Life, and another core figure who also held important positions at these two insurance companies, former Chairman of Evergrande Life Zhu Jialin, was investigated in September 2023. Based on this, the industry speculates that Liu Zhanzhong's being taken away may be related to the &#34;Evergrande system.&#34;
Focusing on the performance of China British Life, the company's cumulative insurance business income for the first three quarters of this year was 16.449 billion yuan, a year-on-year increase of 28.43%. The cumulative net profit reached 456 million yuan, turning losses into profits year-on-year; however, looking at the third quarter alone, it incurred a loss of 424 million yuan. The risk rating changed from &#34;AAA&#34; to &#34;AA,&#34; but it still belongs to the &#34;A category&#34; rating.
The solvency adequacy ratio has risen significantly. The report shows that the comprehensive solvency adequacy ratio is 247.91%, an increase of 8.07 percentage points from the previous quarter's 239.84%, and the core solvency adequacy ratio is 178.09%, an increase of 12.43 percentage points from the previous quarter's 165.66%. China British Life stated that the actual capital at the end of this quarter was 25.9 billion yuan, an increase of 1.9776 billion yuan from the previous quarter.
It is worth noting that the aforementioned actual capital increased by nearly 1.97 billion, with an increase of about 1.976 billion in the &#34;S02-Actual Capital Table&#34;...
After nearly three and a half years in office, Liu Zhanzhong, Assistant General Manager and Chief Actuary of China British Life, was taken away
In recent days, the news of Liu Zhanzhong, Assistant General Manager and Chief Actuary of China British Life, being taken away while in office has attracted industry attention.
Public information shows that Liu Zhanzhong is a professional executive proficient in the actuarial field, born in August 1976, graduated from Sun Yat-sen University with a bachelor's degree in International Trade. Liu Zhanzhong holds full membership qualifications from the China Actuarial Society and the North American Actuarial Society.
Before joining China British Life, he had experience working at several life insurance institutions. He has served at Ping An Insurance, Xincheng Life (now: CITIC Prudential Life), and Prudential Group in the UK.
In his early years, Liu Zhanzhong worked as an actuarial officer at China Ping An; on June 25, 2007, he was approved to serve as the actuarial responsible person at Xincheng Life, and on May 23, 2014, he was approved to serve as the Chief Actuary of Xincheng Life, working there until the second half of 2018, making Xincheng Life the institution where Liu Zhanzhong worked the longest.
On October 19, 2018, Liu Zhanzhong obtained the qualification to serve as Chief Actuary of Evergrande Life. However, his tenure at Evergrande Life was not very long, lasting just over a year. The solvency report for the first quarter of 2020 from Evergrande Life showed that Liu Zhanzhong was still among the executive members, but by the second quarter solvency report, he was no longer listed among the executives.
A year later, on May 1, 2021, Liu Zhanzhong joined China British Life as the temporary head of actuarial, and on May 21 of the same month, he was approved to serve as Assistant General Manager and Chief Actuary of China British Life
In terms of timing, during Liu Zhanzhong's tenure at Evergrande Life, the chairman was Zhu Jialin. According to multiple media reports, Zhu Jialin was taken away for investigation in September 2023. As of now, relevant parties have stated that there is no definite news. Industry speculation suggests that the matter he is involved in is mainly related to the &#34;Evergrande system.&#34; Moreover, both Zhu Jialin and Liu Zhanzhong have worked at Xincheng Life and Evergrande Life, and their overlapping time is not short.
The resume shows that Zhu Jialin initially worked at CITIC Corporation, then began preparing for the insurance company under CITIC and held important positions at Xincheng Life, later moving to Evergrande Life.
From 1986 to 1988, Zhu Jialin served as the deputy director of the public relations section of the banking department at CITIC Corporation. Two years later, he became the secretary to the chairman of CITIC Bank, serving for five years; in 1996, Zhu Jialin experienced a turning point, working and training at Japan Life Insurance Company and Japan Property Insurance Company. The following year, he began serving as the head of the insurance preparation team at CITIC Corporation; from 1998 to 2000, he served as the chief recovery officer and general manager of the asset protection department at CITIC Bank; in September 2000, with the establishment of Xincheng Life, Zhu Jialin was transferred to Xincheng Life as deputy general manager; subsequently, from 2004, he also served as chief operating officer; from 2005, he served as a director and deputy chief executive officer of Xincheng Life until his departure in 2013. During this period, Liu Zhanzhong was approved to serve as the actuarial responsible person for Xincheng Life in 2007.
After that, although Zhu Jialin left Xincheng Life, he remained within the &#34;CITIC&#34; system. From March 2013, Zhu Jialin served as a member of the party committee and vice president of CITIC Bank.
By September 2017, Zhu Jialin joined Evergrande Group, serving as the executive vice president and president of Evergrande Financial Group, as well as vice president of Evergrande Group; a year later, he was transferred to Evergrande Life as chairman, serving from July 2018 to October 2019. During the same period, Liu Zhanzhong was approved to serve as the chief actuary of Evergrande Life on October 19, 2018. After Zhu Jialin left Evergrande Life, Liu Zhanzhong also left a few months later.
On September 16, 2023, the Nanshan Branch of the Shenzhen Public Security Bureau issued a case report stating that recently, public security organs took criminal coercive measures against Du and others from Evergrande Wealth suspected of criminal activities. On September 17, news emerged that Zhu Jialin had been taken away.
Quarterly loss of 400 million yuan, investment return rate halved quarter-on-quarter
Not long before Liu Zhanzhong was taken away, Zhongying Life had just released its third-quarter solvency report for 2024.
The report showed that Zhongying Life's cumulative insurance business income during the reporting period was 16.449 billion yuan, a year-on-year increase of 28.43%. The cumulative net profit reached 456 million yuan, turning from a loss to a profit year-on-year. However, looking closely, the single third quarter recorded a loss of 424 million yuan. It is worth noting that Zhongying Life's investment return rate and comprehensive investment return rate can be described as &#34;excellent,&#34; ranking first among 76 life insurance institutions in terms of cumulative investment return rate. So how did it incur a loss in a single quarter?
<img src="https://imageproxy.pbkrs.com/http://img.jrjimg.cn/2024/11/weixin/one_20241108170520422.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="" original-src="https://imageproxy.pbkrs.com/http://img.jrjimg.cn/2024/11/weixin/one_20241108170520422.png"/> Source: China British Life Insurance 2024 Q3 Solvency Report
Starting from three aspects: first, the quarterly investment return rate is the lowest this year; second, the surrender amount is slightly higher; third, the increase in premium scale may affect the increase in reserve liabilities.
The solvency report shows that China British Life Insurance's single-quarter investment return rate for Q3 is 1.06%, lower than 2.92% in Q1 and 2.24% in Q2. The comprehensive investment return rate is 2.69%, lower than 3.54% in Q1 and 4.26% in Q2.
<img src="https://imageproxy.pbkrs.com/http://img.jrjimg.cn/2024/11/weixin/one_20241108170520458.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="" original-src="https://imageproxy.pbkrs.com/http://img.jrjimg.cn/2024/11/weixin/one_20241108170520458.png"/>
The top three products in terms of surrender amount have accumulated a total surrender scale of 357 million yuan this year, with approximately 160 million yuan surrendered in Q3, accounting for 44.73% of the annual cumulative surrender scale. In addition, China British Life Insurance's comprehensive surrender rate for Q3 is 2.11%, an increase of 0.3 percentage points compared to 1.81% in the same period last year.
<img src="https://imageproxy.pbkrs.com/http://img.jrjimg.cn/2024/11/weixin/one_20241108170520488.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="" original-src="https://imageproxy.pbkrs.com/http://img.jrjimg.cn/2024/11/weixin/one_20241108170520488.png"/> Source: China British Life Insurance 2024 Q3 Solvency Report
Regarding reserve liabilities, although there is no latest data, the growth of premium scale will directly affect the extraction of reserve liabilities, which in turn affects the overall profitability of the insurance company. The solvency report shows that the year-on-year growth rate of premium scale for China British Life Insurance this quarter is 26.08%.
<img src="https://imageproxy.pbkrs.com/http://img.jrjimg.cn/2024/11/weixin/one_20241108170520523.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="" original-src="https://imageproxy.pbkrs.com/http://img.jrjimg.cn/2024/11/weixin/one_20241108170520523.png"/>
Source: China British Life Insurance 2024 Q3 Solvency Report
Additionally, let's take a look at the changes in the comprehensive risk rating. The comprehensive risk ratings for the last two periods (Q1 2024, Q2 2024) of China British Life Insurance are AAA and AA, maintaining an &#34;A class&#34; rating.
In terms of solvency, the comprehensive solvency adequacy ratio at the end of this quarter is 247.91%, an increase of 8.07 percentage points from 239.84% in the previous quarter, and the core solvency adequacy ratio is 178.09%, an increase of 12.43 percentage points from 165.66% in the previous quarter.
China British Life Insurance stated that the actual capital at the end of this quarter is 25.9 billion yuan, an increase of 1.9776 billion yuan from the previous quarter, mainly due to changes in net assets under accounting standards, adjustments of liabilities under solvency basis and accounting standards, and the issuance of perpetual capital bonds. The minimum capital is 10.447 billion yuan, an increase of 473 million yuan from the previous quarter, mainly due to increased market risk, increased credit risk, and life insurance risk
<img src="https://imageproxy.pbkrs.com/http://img.jrjimg.cn/2024/11/weixin/one_20241108170520566.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="" original-src="https://imageproxy.pbkrs.com/http://img.jrjimg.cn/2024/11/weixin/one_20241108170520566.png"/>
Source: China British Life Insurance 2024 Q3 Solvency Report
It is worth noting that the actual capital mentioned above increased by 1.9776 billion yuan compared to the previous quarter, with an increase of approximately 1.976 billion yuan in the &#34;S02-Actual Capital Table.&#34; (End balance 25,900,108,813.37 yuan - Beginning balance 23,922,495,164.41 yuan = 1,977,613,648.96 yuan)
<img src="https://imageproxy.pbkrs.com/http://img.jrjimg.cn/2024/11/weixin/one_20241108170520732.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="" original-src="https://imageproxy.pbkrs.com/http://img.jrjimg.cn/2024/11/weixin/one_20241108170520732.png"/>
Source: China British Life Insurance 2024 Q3 Solvency Report

Zhongying Life's Chief Actuary Liu Zhanzhong was taken away during his tenure, and the industry speculates it is related to the Evergrande group. Although the insurance business revenue in the first three quarters increased by 28.43% year-on-year, and net profit turned from loss to profit, there was a loss of 424 million yuan in a single quarter, and the risk rating was downgraded from AAA to AA. The solvency adequacy ratio has increased, with actual capital rising to 25.9 billion yuan. Liu Zhanzhong is a senior actuary who has worked for several insurance companies

China Finance Online

Breaking news! The chief actuary of this insurance company has been taken away during his tenure, and he has "significant connections" with the former chairman of Evergrande Life Insurance who was "removed from office"; a decrease of 400 million, with the quarterly investment return rate dropping to 1%. What happened to China Life Insurance?