China Taiping Insurance Holdings Company Limited (CTIH) formerly China Insurance International Holdings Company Limited (CIIH), is a Chinese insurance conglomerate. The company has strong Chinese Central Government background despite being incorporated in Hong Kong. It is considered as a
red chip
Red chip stocks () are the stocks of mainland China companies incorporated outside mainland China and listed in Hong Kong. It refers to businesses based in mainland China and with (majority) shares controlled either directly or indirectly by a ...
company.
Businesses
The group's major businesses are
reinsurance
Reinsurance is insurance that an insurance company purchases from another insurance company to insulate itself (at least in part) from the risk of a major claims event. With reinsurance, the company passes on ("cedes") some part of its own insu ...
, life insurance,
property
Property is a system of rights that gives people legal control of valuable things, and also refers to the valuable things themselves. Depending on the nature of the property, an owner of property may have the right to consume, alter, share, r ...
and
casualty insurance Casualty insurance is a defined term which broadly encompasses insurance not directly concerned with life insurance, health insurance, or property insurance.
Casualty insurance is mainly liability coverage of an individual or organization for ne ...
,
asset management
Asset management is a systematic approach to the governance and realization of value from the things that a group or entity is responsible for, over their whole life cycles. It may apply both to tangible assets (physical objects such as buildings ...
, reinsurance brokerage, pension management, real estate manager, etc.
As of 2018 financial year, most of the profit of the listed company came from life insurance (HK$6.2
billion
Billion is a word for a large number, and it has two distinct definitions:
*1,000,000,000, i.e. one thousand million, or (ten to the ninth power), as defined on the short scale. This is its only current meaning in English.
* 1,000,000,000,000, i.e ...
, compare to 8.8 billion profit from all operations; both figures including
minority interest
In accounting, minority interest (or non-controlling interest) is the portion of a subsidiary corporation's stock that is not owned by the parent corporation. The magnitude of the minority interest in the subsidiary company is generally less than 5 ...
that attributable other owner of the subsidiaries).
[ More than 93% income was derived from Mainland China.]
According to S&P Global
S&P Global Inc. (prior to April 2016 McGraw Hill Financial, Inc., and prior to 2013 The McGraw–Hill Companies, Inc.) is an American Public company, publicly traded corporation headquartered in Manhattan, New York City. Its primary areas of busi ...
Ratings, citing China Insurance Regulatory Commission
The China Insurance Regulatory Commission (CIRC) was an agency of China authorized by the State Council to regulate the Chinese insurance products and services market and maintain legal and stable operations of insurance industry. It was founded o ...
, market share (by direct premium) of China Taiping's subsidiary Taiping General Insurance Co. Ltd. in property and casualty insurance in the first half of year 2017 was 2.0% and ranked the eighth. While in life insurance, the market shares (by policy written) of China Taiping's subsidiary Taiping Life Insurance was 3.8% and ranked ninth.
While in Hong Kong, the group's China Taiping Insurance (HK) Company Limited (formerly Ming An Insurance Hong Kong) was ranked the fourth in 2018 for its 6.0% market share by gross written premiums in general insurance market.
In reinsurance, the HK-based Taiping Reinsurance (formerly China International Reinsurance [), had a market share of 17.0% in 2005.
In January 2018, Taiping Trustees, a second-tier subsidiary of China Taiping Insurance Holdings (Taiping Trustees is a subsidiary of Taiping Financial Holdings), partnered with other investors, bought an office building on 18 King Wah Road in ]North Point
North Point is a mixed-use urban area in the Eastern District, Hong Kong, Eastern District of Hong Kong. Located in the northeastern part of Hong Kong Island, the area is named after a cape between Tin Hau, Hong Kong, Causeway Bay and Tsat Ts ...
. As of December 2018, the headquarter of the listed company is located on the 25/F of that building. Previously the headquarters was located in China Taiping Tower in Causeway Bay.[
Taiping Financial Holdings, formerly known as China Insurance Group Securities Holdings,][ a Hong Kong incorporated company, also owned Taiping Securities (HK), a securities broker and financial service company. It was founded in 1986 as New Century Securities,][Data in Hong Kong Companies Registry] by the Bank of China Group
Bank of China Group (中銀集團;BOCG) was the brand used to denote 13 banks that were almost entirely owned by the Chinese government that operated in Hong Kong, until their merger in 2001 to form Bank of China (Hong Kong). The exception was the ...
. The company renamed to China Insurance Group Securities in 2001 and the current name in 2009.
History
Predecessors
Despite the listed company was incorporated in 2000 in Hong Kong, the history of the group could be traced back to Taiping Insurance Company founded in Shanghai in 1929. Another predecessor, China Insurance Company, Limited, was founded in 1931 by the Bank of China
The Bank of China (BOC; ) is a Chinese majority state-owned commercial bank headquartered in Beijing and the fourth largest bank in the world.
The Bank of China was founded in 1912 by the Republican government as China's central bank, repl ...
.[ Ming An Insurance Hong Kong, which was privatized by the listed company in 2009, first founded in Hong Kong in 1947.]
After the establishment of the People's Republic of China
China, officially the People's Republic of China (PRC), is a country in East Asia. It is the world's most populous country, with a population exceeding 1.4 billion, slightly ahead of India. China spans the equivalent of five time zones and ...
in 1949, the Bank of China, the Taiping Insurance Company and the China Insurance Company were nationalized by the Chinese Government, and became part of the People's Bank of China
The People's Bank of China (officially PBC or informally PBOC; ) is the central bank of the People's Republic of China, responsible for carrying out monetary policy and regulation of financial institutions in mainland China, as determined by ...
and the People's Insurance Company of China
The People's Insurance Company (Group) of China Limited, known as PICC Group or just PICC, is a Chinese listed insurer. The Chinese Central Government is the controlling shareholder.
The group contains the major subsidiaries: PICC Asset Managem ...
(PICC) respectively. However, the Chinese government owned bank and insurance companies still do business in Hong Kong, at that time a colony of the British Empire on Chinese soil. The Hong Kong headquarters of China Insurance Company and Ming An Insurance were located in the Bank of China Building in the 1960s, while the Hong Kong headquarters of Taiping Insurance was in Takshing House. The three aforementioned Hong Kong based Chinese government owned insurers had formed China Reinsurance Company (Hong Kong), Limited in 1980,[ which was one of the initial major assets of the listed company that was incorporated in 2000. In 1999 PICC was break down into several smaller insurer groups, including the listed company's parent company China Insurance Company, as well as PICC itself, ]China Life
China Life Insurance Company Limited (short China Life, ) is a Beijing-headquartered China-incorporated company that provides life insurance and annuity
In investment, an annuity is a series of payments made at equal intervals.Kellison, Step ...
and China Re
China Reinsurance (Group) Corporation () ("China RE") is one of the largest reinsurance groups in China.
History and Company Background
China Re originated from The People's Insurance Company of China, the first insurance company in the People's ...
. They were the market leaders in general insurance, life insurance and reinsurance in Mainland China respectively. Under the breakup plan, China Insurance Company was focused on overseas businesses, receiving overseas assets from PICC.
China Insurance International Holdings
China Insurance International Holdings Company Limited became a listed company in 2000. At that time Swiss Re
Swiss Reinsurance Company Ltd,
Swiss Re. Retrieved on 18 January 2011. "Swiss Reinsurance Company Ltd ("Swiss Re") ...
also acquired 9.9% shares of the newly listed company. According to the first annual report, most of the revenue of the listed company in year 2000, came from reinsurance. At that time Ming An Insurance HK (currently known as Taiping Insurance HK) was not yet acquired, and Taiping Insurance was not yet re-established their businesses in Mainland China. Moreover, Taiping was owned by China Insurance Company, the parent company of the listed company at that time.
In 2001, China Insurance Company was authorized to re-open businesses in Mainland China as an insurer.[ In September 2001, the listed company acquired the controlling stake of the Mainland incorporated Taiping Life from the parent company China Insurance Company, for about HK$522 million in cash and newly issued share of the listed company.] As of 2004, the listed company also owned 30% of Tai Ping Insurance, a property and casualty insurer of Mainland China. As of 2018, the listed company owned 75.10% stake of the aforementioned Taiping Life[ as well as 100% stake of the aforementioned Taiping General Insurance.][
From 2002 to 2013, the listed company also acquired more assets from the parent company as part a reverse IPO. In 2002, the listed company acquired China Insurance Group Assets Management Limited (known as Taiping Asset Management (HK) Co. Ltd. since 2009][) for about HK$403 million in cash and newly issued share of the listed company.
]
China Taiping Insurance Holdings
The listed company was renamed to the current name in 2009. In the same year the company privatized fellow listed company Ming An (Holdings)
Ming An (Holdings) Company Limited was a listed holding company of Hong Kong. Through subsidiaries, It provides general insurance in Hong Kong and in Mainland China. It provides motor insurance, property insurance, employee compensation, marine in ...
. Ming An Insurance (Hong Kong), which was owned by Ming An (Holdings), was renamed to China Taiping Insurance (HK) Company Limited in November 2009.[
In 2013, more assets were acquired by the listed company from the parent to complete the reverse IPO, for a price of ]RMB
The renminbi (; symbol: ¥; ISO code: CNY; abbreviation: RMB) is the official currency of the People's Republic of China and one of the world's most traded currencies, ranking as the fifth most traded currency in the world as of April 2022. ...
10.6 billion. The assets included Taiping Financial Holdings (known as China Insurance Group Securities Holdings before 2009[) and it subsidiaries such as Taiping Securities (HK) Co. Ltd.][ (known as China Insurance Group Securities before 2009][), as well as real estate such as China Insurance Group Building.][
]
Shareholders
The parent company
A holding company is a company whose primary business is holding a controlling interest in the securities of other companies. A holding company usually does not produce goods or services itself. Its purpose is to own shares of other companies ...
of the listed company is China Taiping Insurance Group Limited (), formerly known as China Insurance Company, Limited () and then China Insurance (Holdings) Company, Limited () from 2002 to 2009. The company was a former subsidiary of The People's Insurance Company (Group) of China
The People's Insurance Company (Group) of China Limited, known as PICC Group or just PICC, is a Chinese listed insurer. The Chinese Central Government is the controlling shareholder.
The group contains the major subsidiaries: PICC Asset Managem ...
(PICC Group). However, in 1999, the State Council of the People's Republic of China
The State Council, constitutionally synonymous with the Central People's Government since 1954 (particularly in relation to local governments), is the chief administrative authority of the People's Republic of China. It is chaired by the p ...
decided to break down the PICC Group into China Life
China Life Insurance Company Limited (short China Life, ) is a Beijing-headquartered China-incorporated company that provides life insurance and annuity
In investment, an annuity is a series of payments made at equal intervals.Kellison, Step ...
, China Re
China Reinsurance (Group) Corporation () ("China RE") is one of the largest reinsurance groups in China.
History and Company Background
China Re originated from The People's Insurance Company of China, the first insurance company in the People's ...
and the current PICC Group, while China Insurance Company received overseas businesses of the former larger PICC Group. China Insurance Company also not part of the new PICC Group after the re-organization.
As of 31 December 2018, China Taiping Insurance Group owned 59.64% shares of the listed company. Ministry of Finance A ministry of finance is a part of the government in most countries that is responsible for matters related to the finance.
Lists of current ministries of finance
Named "Ministry"
* Ministry of Finance (Afghanistan)
* Ministry of Finance and Eco ...
owned 90% stake of China Taiping Insurance Group. The rest of the stake of China Taiping Insurance Group was owned by the National Social Security Fund since January 2019.
Footnotes
References
External links
*
{{authority control
Companies listed on the Hong Kong Stock Exchange
Financial services companies established in 2000
Government-owned companies of China
Insurance companies of China
Insurance companies of Hong Kong
Ministry of Finance of the People's Republic of China