The leadership of the Moutai-linked life insurer, Huagui Life Insurance Co., Ltd., underwent a complete change at the top in May, with both its chairman and general manager stepping down.
On May 29th, Huagui Life Insurance disclosed a change in its general manager. Luo Zhenhua resigned from his position as the company's general manager due to age, and by resolution of the board of directors, he will no longer be appointed as the general manager of Huagui Life Insurance effective May 15, 2026.
This marks the second major personnel change disclosed by the company within half a month. On May 15th, Huagui Life Insurance announced that Liu Gang resigned from his positions as chairman and director due to organizational personnel changes, with the resignation taking effect from April 30, 2026. Following Liu Gang's departure, Vice Chairman Yang Li is acting as the chairman.
On the operational front, the company's premium income for the first quarter of 2026 was 735 million yuan, a decrease of 9.64% year-on-year. Net profit was 3.5293 million yuan, turning positive from a loss of 47 million yuan in the same period last year. However, the return on investment, asset scale, and solvency all declined. At the end of Q1, the comprehensive solvency adequacy ratio was 135.03% and the core solvency adequacy ratio was 120.28%, down by 23.13 and 21.96 percentage points respectively compared to the previous quarter.
General Manager Luo Zhenhua Retires, Chairman Liu Gang Resigned Weeks Earlier
Born in 1965, Luo Zhenhua holds a master's degree. His public career shows long-term experience in the life insurance industry, primarily focused on branch operations, head office management, and corporate management roles. He previously held key positions at New China Life Insurance, including general manager of its Hunan branch and head of the head office's general administration department. After leaving New China Life, he served as deputy general manager at Sino-French Life Insurance Co., Ltd. He joined Huagui Life as the interim responsible person in June 2020 and was appointed general manager in October 2020, a role he held for over five years until his recent resignation.
Liu Gang, born in 1970, holds a bachelor's degree and is a senior economist. His early career was in the banking system, specifically at China Construction Bank, where he held various roles including branch president. He later moved to the Kweichow Moutai Co.,Ltd. system, serving as vice president, CFO, and board secretary of the listed company. In late 2023, he was approved as the chairman of Huagui Life. In late April 2026, the Guizhou Provincial Government recommended him as a candidate for director, vice chairman, and general manager of Guizhou Qiansheng State-owned Assets Management Co., Ltd., suggesting he step down from his role as chief accountant at the Moutai group. His resignation from Huagui Life followed shortly after.
First Quarter Premiums Fall, Net Profit Turns Positive
As a local state-owned life insurer ultimately controlled by the Guizhou Provincial SASAC, Huagui Life's key operating indicators showed divergence in Q1 2026. While premium income declined, net profit swung to a profit from a loss. The return on investment and total assets also decreased compared to the previous period.
New business value for the quarter was 30 million yuan, with a new business margin of 3.64%. The 13-month policy renewal rate was 91.36%, and the comprehensive surrender rate was 0.82%. Total written premiums were 783 million yuan, with new single-premium first-year regular premiums at 47 million yuan. Bancassurance and internet channels were the dominant distribution channels, accounting for 44.45% and 39.45% of total written premiums, respectively. The number of individual agents at the end of the period was 161.
The company's annualized cumulative investment return rate was 0.001%, and the annualized cumulative comprehensive investment return rate was 0.39%. Total assets at the end of Q1 were 22.591 billion yuan, a decrease of 8.65% from the end of the previous year, while net assets were 1.109 billion yuan, down 25.77%.
Since its establishment in February 2017, Huagui Life has seen steady growth in premium income over the years, but its net profit has been volatile, with profits only recorded in 2021 and 2025.
Solvency Ratios Decline Again Following 615 Million Yuan Capital Injection
A clear theme for Huagui Life in recent years has been its ongoing need for capital replenishment. As the company's scale grew, so did its capital consumption. Its solvency ratios began showing pressure by the third quarter of 2022.
The first major capital increase occurred in 2023, when its registered capital was doubled from 1 billion yuan to 2 billion yuan. Following this injection, the actual controller of Huagui Life became the Guizhou Provincial SASAC.
A larger capital-raising plan was announced at the end of 2024, aiming to raise between 2.5 billion and 4.5 billion yuan. While this large-scale effort is pending, a 615 million yuan capital increase from Kweichow Moutai Co.,Ltd. Group was completed in December 2025, raising the registered capital to 2.615 billion yuan.
This injection had an immediate positive effect on solvency, with both core and comprehensive ratios rising significantly by the end of Q4 2025. However, the effect was not sustained. By the end of Q1 2026, both ratios had fallen again. The company forecasts a further decline in the next quarter, indicating that the newly injected capital is being quickly consumed by business operations, asset allocation, and net asset fluctuations.
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