On December 9, Sunshine Insurance (06963.HK) was officially listed in Hong Kong.
Founded in 2005, Sunshine Insurance is the first company among my country’s Mesozoic insurance companies to be successfully listed. As the 79th insurance company established, Sunshine Insurance has become one of the ten listed insurance companies and one of the eight traditional direct insurance listed companies among the 235 insurance companies in China. It is also the only private insurance company that has been listed in the market since Ping An of China was listed in 2004, except for pure Internet insurance companies such as Zhongan.
The final offering price of Sunshine Insurance is HK$5.83 per share, and the net proceeds of this IPO are approximately HK$6.4195 billion, and a maximum of 173 million shares can be over-allocated. Assuming that all the over-allotment rights are exercised, Sunshine Insurance Group expects the financing amount to be HK$7.4 billion.
Focus on the main business and develop the entrepreneurial gene in a balanced way to establish advantages
As a fast-growing private insurance company in my country, Sunshine Insurance has maintained a good growth momentum since its establishment, and has become the backbone of the development of my country’s insurance industry. From 2007 to 2021, the average annual compound growth rate of its premium income will reach 26%, which is 11 percentage points higher than the average annual compound growth rate of the insurance industry in the same period; 441.623 billion yuan, with an average annual compound growth rate of 30%, 13 percentage points higher than the average annual compound growth rate of the industry.
It focuses on the main insurance business and pays attention to value enhancement, and its personal insurance and property insurance businesses have achieved relatively balanced and rapid development. For the six months ended June 30, 2022, Sunshine’s total premium income was 62.952 billion yuan, of which the total premium income of life insurance business accounted for 66.8%, and the total premium income of property insurance business accounted for 33.2%.
It is understood that Sunshine Insurance is a relatively rare enterprise with unique entrepreneurial experience in my country’s insurance industry. In May 2004, Zhang Weigong, the founder of Sunshine Insurance, cherished the dream of sunshine, resolutely gave up his public office, and led an entrepreneurial team of five people to start a difficult business from scratch. Due to the sudden change in the “attitude” and “idea” of the original investors, Zhang Weigong can only rely on Zhang Weigong’s personal savings of less than one million as the start-up fund, which also further strengthens his “must take financial investors as the premise and value identity as the foundation.” shareholder choice concept. After more than 220 days and nights, he visited 17 provinces in China and negotiated with 389 companies. He selected investors based on values, started a business in a completely market-oriented way, established Sunshine Property Insurance, and established Sunshine Insurance Group on this basis.
The entrepreneurial spirit of “dare to challenge and persevere”, the market-oriented mechanism and the principle of value creation formed by the company at that time laid the foundation for Sunshine’s value proposition and entrepreneurial spirit, and became the genetic force for its continuous development and growth.
Value development runs through and continues to practice the original mission
Today, Sunshine Insurance is not only full of the vitality of daring to challenge when it was born, but also has the steadfastness of “farmer mentality and craftsman spirit”, and has embarked on an upward curve of value development.
For example, Sunshine insists on infiltrating innovation culture into all aspects of operation and management. Through a series of effective product innovation, model innovation and service innovation, it can enhance comprehensive competitiveness in multiple aspects and enable sustainable business development. Since 2020, its subsidiary Sunshine Life has innovatively implemented “breakthrough projects” in central cities and provincial capitals in the agent channel, effectively improving the quality and productivity of the agent team; it has innovatively established a multi-level customer management system, including dealing with the public The “Sunshine·Orange” system for customer groups, and the “Sunshine·Zhenchuan” system for high-net-worth customers. Sunshine Property & Casualty Insurance, a subsidiary of Sunshine Property & Casualty Insurance Co., Ltd., innovated and explored the channel operation mode of exclusive agency stores (“EA stores”), formed a flat and standardized operation mode of “platform + entrepreneurship”, and continuously optimized the selection of people and locations of stores by using big data technology , layout model. After continuous breakthroughs, upgrades, and deep cultivation, Sunshine Insurance has formed a strong market competitiveness, with about 31.5 million individual customers and about 800,000 group customers.
In terms of value-related indicators, Sunshine Insurance is particularly eye-catching among listed insurance companies: in terms of new business value, in the first half of 2022, Sunshine Insurance’s life insurance new business value reached 2 billion yuan; in terms of embedded value, Sunshine Insurance’s 2021 year-on-year An increase of 15.5%, which is higher than the average value of listed peers, and the embedded value in the first half of 2022 will reach 92.9 billion yuan.
At the listing ceremony, Chairman Zhang Weigong said: “Sunshine’s listing is a preparation for Sunshine by the capital market, and it can be said to be the best ‘adult gift’ for the company!”
Zhang Weigong also talked about the impact of listing on Sunshine and the company’s future development path. “Stepping into the international capital market and becoming a global public company will greatly help broaden the international vision and enhance the development momentum.” “In the new stage, Sunshine The fundamental starting point is to serve the national strategy and meet people’s insurance protection needs in the new era, and to “be a professional and leading family insurance protection service provider and a trustworthy enterprise risk management partner” as the business pursuit” “will continue to carry forward the original entrepreneurial spirit , with higher standards, to comprehensively promote the healthy and high-quality development of the company, and to practice the original mission of “creating value for customers, making employees successful, creating harmony for the society, and enabling shareholders to reap rewards” with more outstanding achievements, creating A brighter future for Sunshine Insurance.”
The successful listing of Sunshine Insurance on the one hand proves that the capital market recognizes the long-term value of insurance companies that stick to their main business, and on the other hand, it also brings more positive significance to the development and growth of China’s insurance industry.
(Editor: Qian Xiaorui)
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