Ancheng Property Insurance Co., Ltd. (Ancheng P&C) is witnessing multiple shareholders offloading their stakes. On November 20, Chongqing Highway Engineering Group auctioned 181.5 million shares of Ancheng P&C in two lots on Alibaba’s asset platform. Despite attracting over 2,500 viewers, neither lot received bids as of press time. The auctions are set to conclude at 10 AM on November 21.
Chongqing Highway Engineering Group, Ancheng P&C’s fourth-largest shareholder, has declared bankruptcy. Between 2022 and 2023, the group repeatedly attempted to auction its Ancheng P&C shares, only to face withdrawals or failed auctions due to objections from third parties.
Other shareholders are also divesting. On November 27, Ancheng P&C’s tenth-largest shareholder, Chongqing Lifan Holdings, will auction its 2.4534% stake. Earlier, on October 13, fifth-largest shareholder Chongqing Water Group Co., Ltd. (601158.SH) sold its entire 210 million shares for a base price of approximately RMB 364 million.
While private shareholders exit, state-owned investors are stepping in. In June, Chongqing Development and Investment Co. (CDIC) acquired shares from Chongqing Yufu Holding Group, becoming Ancheng P&C’s second-largest shareholder.
Experts attribute the sell-offs to Ancheng P&C’s weak profitability, with a combined ratio persistently exceeding 100%. Nankai University’s Tian Lihui noted that frequent ownership changes reflect regional insurers’ struggles amid an industry trend of "private capital retreating and state capital strengthening." Private shareholders, pressured by operational challenges, are exiting, while state-backed entities consolidate control for risk mitigation.
Ancheng P&C, founded in 2006 and controlled by Chongqing’s State-owned Assets Supervision and Administration Commission (SASAC), has a fragmented ownership structure. Its latest solvency report shows 19 shareholders, including seven state-owned, one South Korean, and 11 private entities. Notably, 30.44% of shares are pledged, and 8 private shareholders have most holdings frozen or mortgaged.
Financially, Ancheng P&C reported modest growth, with Q3 2025 revenue up 6.1% year-on-year to RMB 4.25 billion, but net profit was merely RMB 10.64 million. From 2022 to 2024, revenue hovered around RMB 5 billion annually, with profits ranging between RMB 24.2 million and RMB 30.6 million.
Analyst Yu Fenghui highlighted that dispersed ownership and frequent changes undermine governance stability. The CDIC’s June stake acquisition, an internal SASAC reshuffle, aims to optimize state capital management without altering control, potentially fostering synergy with local SOEs.
Leadership shifts accompany these changes. On September 28, Yuan Wei was nominated as chairman after an eight-month vacancy. With a regulatory background at the People’s Bank of China and Chongqing’s financial bureau, his appointment signals tightened state oversight. Yuan emphasized prioritizing risk control and compliance while driving growth.
However, regulatory penalties persist. On November 14, Ancheng P&C’s Hanzhong branch was fined RMB 120,000 for commission fraud and misconduct. Year-to-date, fines exceeding RMB 3 million have been levied across branches for violations like falsified reports and improper claims.
Tian Lihui views the sell-offs as both a crisis and opportunity. State-backed consolidation could stabilize Ancheng P&C, enabling a pivot to niche markets. Yuan Wei’s pledge to uphold compliance and performance may chart a path from "troubled insurer" to "specialized player."
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