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The real estate developers have turned into the insurance industry. Are they considering the license or financing?

January 11, 2019 09:54
source: Beijing News

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The industry believes that the layout of housing enterprisesInsuranceMore business is to increase a "financial road."

Once, the insurance capital appeared in the image of “barbarians”, and the housing enterprises became the targets of their hunting and placarding, including Vanke, OCT, Gemdale, and Ocean.Country Garden,Financial street,Poly Real EstateWaiting for many well-known housing companies to become their "prey."

Nowadays, the battlefield conversion, the insurance capital is not as "fierce" as before, and the housing enterprises frequently appear in the insurance market as the acquirer. Recently, including Greentown,New worldDevelopment, Xiangjiang Group and many other housing-related enterprises, layout insurance business.

  Conversion

  Greentown, New World and other housing enterprises layout insurance business

A few days ago, Greentown acquired a part of the equity of Centennial Life. As the seller suspected to be Dalian Wanda, it caused strong market concern. On January 8, 2019, the official website of China Insurance Industry Association disclosed 100 years of life.shareholderChange,Equity transferFang is the Dalian Wanda Group.

According to the disclosure, Dalian Wanda transferred 900 million shares of the 100-year life to Greentown.real estateGroup Co., Ltd. After the completion of the share transfer, Greentown Real Estate holds 900 million shares of 100-year life, and its shareholdings account for 11.55% of the company's total share capital. Dalian Wanda no longer holds shares of the company. According to December 17, 2018Greentown ChinapostedannouncementThe consideration for the transfer of the transaction was 2.718 billion yuan.

Coincidentally, in December 2018, another housing company laid out insurance business, which was also caused by the huge transaction amount. On the evening of December 27,New world developmentAnnounced that its indirect non-wholly owned subsidiaryNew creation groupThe company acquired 100% equity of Suntech Insurance Co., Ltd. ("Futong Insurance"), a wholly-owned subsidiary of Jiuding Group, for a price of HK$21.5 billion. According to the information, Fortis Insurance was established in 1985 and is one of the major insurance companies in the Hong Kong market, mainly engaged in life insurance business.Insurance ProductsThese include life insurance, pension insurance, investment insurance and medical and disability insurance.

In the change of shareholders of Xinguang HNA Life Insurance, a number of housing companies have also appeared. On October 10, 2018, the Banking Regulatory Commission issued a reply on the change of shareholders of Xinguang HNA Life Insurance. According to the announcement, HNA Group, one of the major shareholders, sold all the shares, transferring 38% of the 50% of the shares held to Xiangjiang Finance and 12% to Guanpu Real Estate. Another major shareholder, Shin Kong Life Insurance, transferred 15% of the 50% stake to Bailin Asset Management, and 10% to Guozhan Investment, which holds 25%. Among them, Lai Linlin, the current director of Bailin Asset Management, is the son of Lai Haimin, a wealthy real estate company. Lai Haimin has Hongrongyuan Group, which is known as one of the three giants of Baoan in the real estate industry. Xiangjiang Finance is a company engaged in financial business of Xiangjiang Group. The group has made a fortune in the real estate sector. Guanpu Real Estate is a private enterprise specializing in residential development. The parent company is Fujianheng Real Estate Development Company.

Not only that, but before, including Taihe, Evergrande, Shimao,Sunshine City,New Town Holdings,Baolong Real EstateMany housing companies will arrange insurance markets in different forms, either directly acquiring insurance companies or participating in the establishment of insurance companies. Why do housing companies prefer insurance business?

  analysis

  Layout financial sector increases "financial road"

For the layout insurance business, Greentown said thatChina Life InsuranceThe insurance business is developing rapidly and the prospects are boundless. Given the high threshold of China's insurance industry, life insurance licenses have unique capital investment value, and the acquisition is an opportunity for the Group to invest in the life insurance industry in China. In addition, since the company's main customer base (ie, the property buyer) overlaps with the target company's guaranteed insurance customer base, it is expected that there will be cross-selling potential and synergy.

New World Development also believes that the acquisition of insurance companies is a unique opportunity to expand its premium product and service ecosystem to an attractive insurance industry. In addition, cross-platform promotion opportunities between Fortis Insurance's premium customers and New World Development Group and NWS Group's high-end customers will be strengthened.

The insurance license is expensive, and it is well known that many companies can take advantage of its twists and turns. For those who intend to lay out financial sectors, they will not miss any opportunity to intervene. Yan Yuejin, research director of the Yiju Research Center, believes that finance has always been an important part of the layout of housing enterprises, and licenses are scarce resources, which has prompted the layout enterprises to increase investment.

However, analysts believe that the layout of insurance business is more to provide a "financial road" and capital entrance for housing enterprises. Some insiders pointed out that the insurance industry, as an important sector in the wealth management field, can absorb social capital at a lower cost, and can provide financing support to related party shareholders by means of investment bonds, debt investment plans, and trusts.

However, in the view of Zhang Hongwei, director of the Center for Policy Consulting, although in the medium and long term, insurance is the focus and layout of real estate enterprises, in the short term, there will still be regulatory and development issues.

In addition, the housing business layout insurance business can provide funds for its long-term rental apartments, pension real estate, customer support. In June 2018, in order to speed up the establishment of a multi-agent supply, multi-channel security, rent-and-purchase housing system,Bank of ChinaThe Insurance Regulatory Commission issued the Notice on the Relevant Matters Concerning the Participation of Insurance Funds in the Long-Term Market. This is undoubtedly a "timely rain" for the housing rental industry that lacks money. In addition, in the aspect of pension real estate, the insurance business can also provide a good customer base.

(Article source: Beijing News)

                (Editor: DF358)

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