|
Huatai Insurance Company of China Ltd.
| Establishment |
| |
Huatai Insurance Company of China Ltd. was established with the approval of the People's Bank of China and opened for business in Beijing on August 29, 1996. It is the first P&C stock company in China with national franchise. It's registered capital was RMB£¤1.333 billion. Most of the 60-plus shareholders launching Huatai are powerful and profitable enterprises or enterprise groups. 20 of them are among China's top 100 enterprises, and 14 are among the top 50 . Huatai's shareholders cover 24 industries in China, with total assets worth over one trillion yuan. |
| | |
| Development |
| |
Huatai has established the mechanism in connection with a modern enterprise system. It has implemented to the letter the profit -focused operating target responsibility system for all employees. Adhering to market-orientation, it has been trying hard to boost the development of insurance business, while attaching utmost importance to capital utilization. Thus, it has given top priority to management, service and steady operation and has achieved good operating results. It has opened business offices in 25 cities like Beijing, Shanghai, Tianjin, Nanjing, Shenzhen, Qingdao, Chengdu, Dalian, Guangzhou, etc. As a result, an operational layout extending to all parts of China has been formed preliminarily.
¡¡¡¡
Adhering to the enterprise motto of "making exploration and innovation, honesty and credibility," Huatai has redoubled its efforts to push ahead organizational restructuring and staff training . After five years' hard work, it has tentatively formed an operational and managerial system and company culture with its own characteristics, and has trained a contingent of employees who have the courage to work hard, keep forging ahead with keen determination, have perfect skills and implement strict management. |
|
| Prospect |
| |
Unswervingly taking profit as its focus and enhancement of core competitiveness as its purpose, Huatai has instituted a scientific and highly efficient operational and managerial system, and energetically explored the way of sustainable development. Huatai has been trying its utmost to become a first class insurance enterprise in order to provide satisfactory returns for its shareholders and make its own contributions to the development of China's insurance industry. With great enthusiasm and in the persistent spirit, Huatai is taking the chance and challenges brought by the advent of the new century and China's access to WTO.
Strategic Objectives:
Following the path of intensive operation, making Huatai an insurance company with specialized operation that focus on quality and profitability, and aiming at the leading position in China's P&C market. | |
| |
| System Introduction and Improvement |
| |
Huatai has taken system introduction and improvement as the foundation for its development. With the help of some world-known consulting firms, it has improved various operational rules , and has instituted according to international standard a business and financial performance evaluatiaon scheme. With a centralized system to verify insurance and compensations, the comprehensive budgetary control and computer network system and the risk supervision and management system have been strengthened. Its managerial capability has been improved in an all-round way and the best managerial mode for modern enterprises was explored constantly.
| |
| Strategic Development |
| |
Huatai has decided that in the next five years, it will push ahead toward the objective of restructuring itself into a financial group. That objective includes the introduction of foreign funds for equity participation, the establishment of joint-venture life insurance company and asset management company, as well as becoming a listing company.
In May 2002 Huatai successfully introduced foreign capital into its equity - ACE, a world-known financial service group, became Huatai's shareholder and strategic partner. Foreign stockholding optimized Huatai's share composition and governance structure. ACE brought with it advanced managerial concepts and support in terms of specialists, expertise and training, thus accelerating Huatai's integration with international market practice. In accordance with modern corporate system and international practice, the company optimized its shareholding structure and corporate governance. The executive committee and 3 special committees for budget verification, compensation and audit were established under the Board. A CEO structure was adopted with COO Insurance and COO Investment accountable correspondingly for the performance of insurance and investment, the 2 independent profit centers£®
¡¡¡¡
Business management is framed with the principles of specialty division, personal accountability, flat organization and matrix management. Business is divided by individual and commercial lines, and the Underwriting Center, Claim Center and Operation Management Department were set up to realize vertical management in terms of underwriting, finance, HR and IT. In this way, the company improved its control over branches, upgraded its specialization level and integrated its image throughout the market.
¡¡¡¡
In 2001, Huatai formally started to prepare to become a listing company. It will be conducive to perfecting Huatai's governance structure, standardizing its operation, giving full scope to the superiority of shareholding enterprises, enhancing Huatai's reputation and social influence, unclogging its fund-raising channel on the capital market, and creating conditions for Huatai to attain still higher development goals. A leading group has been set up to handle affairs related to listing affairs, for that purpose, famous professional Chinese and foreign agencies have been invited to offer consultation and handle auditing issues. On November 6, 2001, with the approval of the Beijing Office of China Securities Regulatory Commission, Huatai formally entered the one-year listing guidance period and started to make overall preparations for the early stage of listing.
¡¡¡¡
Huatai is in a good process of establishing a joint venture of life insurance company, that will be very beneficial to promote products not only for life but also for property insurance company in the result of strengthening comprehensive competitive advantage on the one hand. On the other hand, it will be able to enhance Huatai's long-term profit-making capability, while the stock ownership of the joint company can be used for investment. Huatai will speed up the work to launch a joint venture life insurance company by formulating an explicit work principle, making extensive contracts with other companies and choosing ideal cooperating partners. | |
| Business Development |
| |
By unswervingly pursuing correct operational tactics, Huatai has achieved steady development and constant improvement of its insurance business and business quality, and achieved high return in its investment business. Since its establishment six years ago, premiums income of RMB£¤2.8 billion has been realized, growing at an average annual rate nearly 40%.
Huatai¡¯s total profit achieved historical high in 2002, with insurance premium amounting RMB 790m, up 19% from 2001, a faster growth than national P&C average. Returns from investment reached RMB 185m, with an ROI at 8.78%, much higher than market average. Return on Equity reached the highest point since foundation.
Huatai has persisted in taking the market and customers as its orientation, lowered its operation costs and risks via strict management, formulated effective and feasible business policies, taken an active part in market competition, adjusted its insurance product mix to develop high margin lines and and undertaken to provide best service for clients.
Since its establishment five years ago, Huatai has always taken investment business as one of its two main businesses and given the same priority to investment as insurance , with the annual return rate averaging about 14%. Huatai won many times the title of ¡°outstanding unit in the settlement business on the national inter-bank bond market.¡± . It is the single government bond underwriter recommended by the Chinese Ministry of Finance to China¡¯s Social Security Funds. In 2001, it set up the Investment Management Center and late moved it to Shanghai, China¡¯s financial center.
¡¡ |
| | |
| Major Projects |
| |
|
|
|
In a fiercely competitive market, Huatai has dared to blaze a new trail by standardizing operations, improving services and constantly developing new business lines, , which ensured a constant increase in both market shares and premium income..¡¡
Thanks to the concerted effort of all staff, Huatai has covered a number of major projects with not only high economic returns but also good social effects nationwide. In1998, it provided coverage for hull insurance on M.V ¡°Suzhou¡± of the Shanghai International Ferry Company, the project of the Nanjing Chemicals Group with product of 300, 000 tons of synthetic ammonia annually, the Southern Sluice in Papar, Thailand, the natural gas pipeline project from Shanxi to Beijing and the southern breakwater project in the first-phase construction of the Huanghua Port.In 1999, it covered the Palace Hotel, the office buildings of the People¡¯s Bank of China and the State Administration of Foreign Exchange, the activity of ¡°Buick new century 10,000-kilometer travel¡± sponsored by the Shanghai General Motors, the CCTV¡¯s live broadcasts of the gala to celebrate the 50th anniversary of the founding of the People¡¯s Republic of China, the Sydney Olympic Games and Macao¡¯s return to China. After getting membership of the national space and aviation insurance pool, , it initiated and joined the China nuclear insurance pool, , thereafter provided insure for the Lianyungang Nuclear Power Station in Jiangsu Province. In 2000, we covered the Shanghai Cable TV Station, the China Resources Building in Beijing and Guohua power plant . In 2001, the ¡°big project fund¡± was set up to develop and maintain a number of major projects, including the Beijing urban construction system, the CBD Fortune Plaza, CCTV new premises, Guangzhou subway, IC cards issued by the Beijing Branch of the Agricultural Bank of China, the Shanghai General Motors, and the Jiangnan Shipyard.. We were also invited to biddings for coverage for a number of major projects including the Daya Bay Nuclear Power Station, the stainless steel production project of the Shanghai Baoshan Iron and Steel Complex and China Netcom. In 2002, we issued the first policy for Beijing¡¯s Olympic projects after the city won the bid for hosting the 2008 Olympic Games: the erection risk and third party liability of Beijing light-track railway.
¡¡¡¡
|
| | |
| Business Innovations |
| |
Huatai has been working vigorously to develop new products and expandits business scope. To fully utilize the advantages of latecomer, it has developed a number of new insurance products including commercial housing insurance and investment-type household insurance while operating and upgrading its conventional products. While continuing to expand traditional business, it has energetically developed innovative financial products. As the first investment- type product by a property insurance company in China, the ¡°Ju¡¯an Investment-type Household Insurance¡± was introduced in 2001, drawing grear attention of the society. By the end of the year, the turnover of that product had reached RMB£¤416 million.
To act in coordination with the state housing reform and to meet the needs of the situation in which banks are expanding housing loan business, Huatai has introduced the commercial housing mortgage insurance, and set up a special marketing team, thus securing the advantage in early market access and occupying a fairly large market share in Beijing.
Paying close attention to bankassurance, , Huatai has signed overall business cooperation agreements with many banks, including the Industrial and Commercial Bank of China, to jointly sell financial products and provide more comprehensive service for customers.
Huatai has cooperated with specialized network companies in designing and developing the upgraded website (www.ehuatai.com) to offer clients on-line insurance service around the clock.
¡¡ | |
Products
¡¡
| Hull Insurance |
| |
Hull insurance covers various types of ocean-going ships, coastal vessels, inland river and fishing boats, as well as insurance for the ship damaged by natural calamities, accidents, perils of the sea and navigational negligence. Hull insurance is a major line of the business for development by Huatai, which has so far undertaken to cover insurance on hundreds of ocean-going ships and coastal vessels of the China Ocean Shipping Group, the China Marine Transport Group and local shipping companies. Huatai¡¯s credibility and quality marine insurance service has been acknowledged by the international banking sector and insurance companies. Huatai can provide satisfactory guarantees in case of any requirement for releasing the cargo or vessel and meet any needs of insurance service requested by owners. |
| | |
| ¡¡ |
| Enterprise Property Insurance |
| |
Enterprise property insurance provides coverage for risks of the property of various types of enterprises, offices, non-governmental organizations and institutions. It plays a vital role in diversion of risks of enterprises¡¯ property and stabilizing enterprises¡¯ normal operations. Relying on its great insurance coverage capability and quality service, Huatai has underwritten many subject matters including Head Office of the People¡¯s Bank of China, the Wangfu Hotel in Beijing and the Shanghai Cable TV Station. |
| | |
| Automobile Insurance |
| |
Automobile insurance refers to insurance provided for the damage of automobile bodies and the third party liability, as well as a variety of additional insurance such as the liability to passengers on aboard and insurance on whole automobile stolen and its robbery. According to customers¡¯ requirement, Huatai may provide single-item risk insurance or multiple-item risk insurance. To offer clients quality, prompt and best service, Huatai has introduced the business of serving at a client¡¯s home on telephone appointment made in advance, and undertaken to handle claims around the clock. The ¡°green corridor for settling automobile claims.¡± Is opened for convenience of clients. |
| | |
| Erection & Construction All Risks Insurance |
| |
Erection & Construction All Risks Insurance undertakes to cover the physical losses and listed expenses of construction/installation projects as a result of natural disasters and accidents, as well as the economic compensatory liability of the policyholders who shall, according to law, assume for the death of or injury to or the property loss of the third party. Huatai has successively underwritten a number of subject matters including the breakwater project of the Huanghua Port, Hebei Province, insurance on construction of the Nanjing International Exhibition Center and the chemical fertilizer project of the Nanjing Chemicals Group. |
| | |
| Household Property Insurance |
| |
Household property insurance covers the risks of household property of urban and rural residents. It includes ordinary insurance on household property and household property savings insurance. With the improvement of the living standard of urban and rural residents, this type of insurance is in great demand. In 1998, Huatai introduced China¡¯s first ¡°Household property insurance card.¡± In 2000, ¡°housing insurance,¡± an insurance product with a special character, as well as the investment-oriented ¡°Huatai financing-oriented family comprehensive insurance¡± with a brand new concept was introduced. |
| | |
| Liability Insurance |
| |
Liability Insurance covers the policyholders' civil damage compensatory liability to third parties. Enterprises, non-governmental organizations, families or individuals causing damages to others as a result of their negligence, mistakes and other behaviors shall, in accordance with laws or contracts, assume economic compensatory liability for third party¡¯s injury or loss of or damage to their properties. Huatai has provided for the general public liability insurance, the employer¡¯s liability insurance and the product liability insurance. For example, Huatai had covered risks of general public liability to The 99¡¯¡¶Fortune¡·Global Forum held in Shanghai International Convention Center which draws great attention from all fields of the life. ¡¡ |
| | |
| Builders' Risks Insurance |
| |
The subject matter of Builders¡¯ Risks Insurance is various kinds of ships and waterborne facilities being built or waterborne floating objects. It covers the physical loss of or damage to waterborne floating objects or ships and waterborne facilities caused by various kinds of on-land and marine risks during the entire period of building, as well as extra expenses arising thereafter and the economic compensatory liability to the third party. |
| | |
| Oil Insurance |
| |
Oil insurance, which belongs to energy insurance, undertakes to provide insurance for the loss of or damage to the subject matter of on-land and offshore oilfields and costs caused by natural disasters and accidents in the entire process of exploration, development, construction and production, as well as the third party liability. It includes the insurance for the Builder¡¯s Risks, Oil and Gas Drilling Equipment and Platform All Risks. |
| | |
| Cargo Transport Insurance |
| |
Cargo transport insurance includes insurance on cargoes transported at sea, on land, by air and along inland rivers and roads, as well as parcel post insurance and container insurance, specially with additional clauses for war risks insurance, strike insurance, fresh water and rain damage insurance, on deck insurance, general average contribution and sue and labor charges. Huatai has established long-term cooperative relations with many trade companies and shipping companies, scoring a steady increase in its turnover. |
| | |
| Aviation and Space Insurance |
| |
The subject matter of aviation insurance is aircraft. It includes the aircraft insurance, maintenance liability insurance and owners of airport liability insurance. Space insurance covers insurance for satellites, rockets and other high-tech space products from development, launch to the flight phase. Huatai, currently a principal member of the national space and aviation insurance association, has participated in insuring 12 launches of 16 satellites, thus exhibiting its strength and capability to underwrite subject matter with high-risk. | |
|
