Policy-driven, capital replenishment, personnel changes.

Investor Network, Cai Jun

China Everbright Life Insurance (hereinafter referred to as "the Company") is experiencing a transitional period.

Recently, the two major central enterprise shareholders of the Company simultaneously listed their stakes for sale, a transfer stemming from the state-owned enterprise reform requirement known as the "retreat of capital order." Moreover, this equity clearance coincides with a special moment, as the Company has just turned profitable but its solvency is nearing the regulatory red line.

In other words, multiple intersecting factors such as policy-driven initiatives, capital replenishment, and personnel changes are converging at the Company. Successfully completing the equity transfer and capital increase will become a breakthrough point.

Central Enterprise Shareholders' "Retreat of Capital Tide"

With the simultaneous "clearance" of the two major central enterprise shareholders, China Everbright Life Insurance is entering a new landscape.

Recently, Anshan Iron and Steel Group Co., Ltd. and China Ordnance Investment Management Co., Ltd. simultaneously listed their respective 12.505% stakes in the Company at the Beijing Equity Exchange, totaling 25.01%, with an overall base price of approximately 2.01 billion yuan. Based on this calculation, the Company's overall valuation is approximately 8.04 billion yuan.

The key point of this transaction lies in the bundled transfer, which cannot be separated; the intended transferee must participate in both target acquisitions simultaneously and cannot bid for a single stake alone. So far, the Company's two core shareholders, China Everbright Group and Canada Life, have not waived their right of first refusal.

Regardless of the outcome, the Company's equity structure will undergo a new round of restructuring. Established in 2002, the Company initially had an equal joint venture structure, with China Everbright Group and Canada Life each holding 50%. In 2010, the Company introduced the two central enterprises that are now looking to sell their stakes, increasing the registered capital from 1.4994 billion yuan to 3 billion yuan.

In fact, the simultaneous exit of the two central enterprises is the result of various driving factors. On one hand, under the state-owned enterprise reform and financial deleveraging policies, central enterprises are explicitly focused on their main responsibilities and strictly controlling non-core financial investments. As a result, major central enterprises are accelerating the divestment of non-core financial assets such as banks, trusts, and insurance, leading to a widespread "retreat of capital tide." On the other hand, the Company has incurred losses for three consecutive years from 2022 to 2024, totaling over 3.5 billion yuan. For central enterprises deeply engaged in the real economy, recovering funds to focus on their main business has also become a strategic choice.

Essentially, the underlying logic of the central enterprises' "retreat of capital tide" is policy-driven, with the fundamentals of the held targets under pressure accelerating the exit pace. In other words, the Company may not be the last case.

In 2024, AVIC Group will officially list its 24% stake in China Bank Samsung Life for transfer, with a base price of 1.815 billion yuan, completely exiting the non-core insurance sector. In the same year, PetroChina Capital will transfer its stake in China-Italy Property Insurance to foreign shareholder Italy's Generali Earlier, China Aviation Alliance Property Insurance, Huatai Insurance, and Changjiang Property Insurance all saw state-owned capital exit, covering central state-owned enterprises such as China Aviation Investment, State Energy Group, Dongfeng Assets, China Shipbuilding, and China General Nuclear Power.

However, the company's current round of equity transactions stands at a special crossroads: solvency is approaching the regulatory red line.

Urgent Need for Capital Supplement

The anxiety of China Everbright Life Insurance is imminent.

According to regulatory requirements, if an insurance company's core solvency adequacy ratio is below 60% and the comprehensive solvency adequacy ratio is below 120%, it will be classified as a key inspection target. As of the end of the first quarter of this year, the company's corresponding two data points were 60.99% and 121.98%, especially the core solvency, which is close to the regulatory red line. In this regard, the company bluntly stated in its solvency report that the continuous fluctuations in market interest rates have led to an increase in reserve provisions and continuous capital consumption, putting significant pressure on the company's solvency. Shareholder capital increase is the most effective means to alleviate the crisis.

Previously, the company planned to complete a capital increase of 1.875 billion yuan in the first quarter of this year, but it was postponed to the second quarter due to changes in equity. According to estimates, after this capital increase is implemented, the company's core solvency is expected to rise to around 85%, and the comprehensive solvency can rebound to 144%, effectively mitigating regulatory risks.

However, the equity transfer matters are still undecided. Based on a transaction cycle of 1-2 months, the company's suspended capital increase plan may have an effect, meaning that capital cannot be in place in time, leading to an upgrade in regulatory constraints. Moreover, the company's operational situation has just shown signs of recovery, and being under pressure again is not the expected scenario.

In 2025, the company achieved a profit turning point after years of losses, with a net profit of 110 million yuan for the year. In the first quarter of 2026, the company's net profit reached 476 million yuan, with investment income becoming a core support. As of the same period, the company's asset scale reached 128.4 billion yuan, an increase of 2.14% compared to the beginning of the year.

In other words, the company's operational recovery trend is clear. Part of the reason is attributed to the steady growth of premium income. In 2025, the company's premium income was 18.855 billion yuan, reaching 6.526 billion yuan in the first quarter of 2026. Among them, the company focuses on stable, low-capital-consumption dividend insurance, and the product structure highly aligns with current market demand, further driving the growth of new single premiums.

Management Transition: Actuarial Team at the Helm to Initiate Value Transformation

While the equity restructuring and fundamental changes are underway, the senior management iteration of China Everbright Life Insurance has not yet concluded.

In 2025, the Tianjin Regulatory Bureau of the National Financial Supervisory Administration officially approved Zhang Chensong to serve as the company's chairman, completing the transition of the "top leader." As a senior technical executive, Zhang Chensong holds actuarial qualifications in China, North America, and the UK, as well as the Chartered Enterprise Risk Analyst qualification. After joining the company, he has held core positions such as Chief Actuary, Financial Responsible Person, Deputy General Manager, and General Manager.

In the same year, Qu Yongyao was approved to serve as Chief Actuary, and Fan Siyuan concurrently took on the roles of Deputy General Manager, Board Secretary, and Financial Responsible Person, overseeing key areas such as finance, compliance, and board secretary. However, the position of General Manager remains vacant, and the final piece of the executive puzzle has not been completed Overall, the company is at the intersection of four major changes: equity restructuring, capital replenishment, personnel iteration, and strategic transformation. The exit of state-owned capital driven by policy has become a foregone conclusion, while the unresolved capital increase plan and the near-red-line solvency are survival challenges that must be addressed in the short term. If the equity transfer and capital increase can be successfully completed, the company is expected to achieve a high-quality value transformation. Conversely, if the equity transaction encounters obstacles and the capital increase continues to be delayed, the company may fall into a passive situation of capital pressure and operational restrictions.

Do you believe the company can maintain its improving operational fundamentals? Feel free to leave comments and discuss in the comment section. (Produced by Siwei Finance)