Guoren Insurance, a regional state-owned financial institution, is undergoing significant management changes as it faces shareholder opposition and strategic challenges.
At recent shareholder meetings, proposals have consistently faced opposition, with 601 million votes against key resolutions, reflecting the stance of the second-largest shareholder, Lianmei Quantum. Despite maintaining profitability for seven consecutive years since 2017, the company reported a substantial investment loss of RMB 1.167 billion in 2024, leading to a sharp decline in net profit.
In response, Guoren Insurance has initiated a comprehensive restructuring, including a management reshuffle aimed at rejuvenating its leadership team. The company's chairman, Fang Yongbin, was reappointed in late 2024, potentially becoming the longest-serving chairman in its history. Meanwhile, President Deng Ke, aged 60, has taken on additional responsibilities in compliance and finance.
The management overhaul includes the departure of a senior executive and the appointment of three new executives in their 70s, alongside significant role adjustments for four others. This shift towards a younger leadership team is part of broader efforts to optimize operations and drive growth.
Guoren Insurance, originally known as Cinda Property & Casualty Insurance, underwent a major transformation in 2017 when its controlling shareholder shifted from China Cinda to Shenzhen State-owned Assets Supervision and Administration Commission. The company rebranded and became part of the local financial platform.
Despite its growth and profitability, the company's 2024 investment losses have prompted a series of corrective measures. The first three quarters of 2025 have shown stable business performance and strong profit growth, signaling progress in its reform agenda.
The company's shareholder structure remains stable, with state-owned entities holding 76.832% of shares. However, ongoing shareholder disputes and management adjustments highlight the challenges ahead as Guoren Insurance seeks to navigate its next phase of development.
Financially, Guoren Insurance has expanded its premium income significantly, surpassing RMB 10 billion in 2021. However, the 2024 investment losses have impacted overall performance, with net profit dropping to RMB 55 million. The company's solvency ratios remain healthy, well above regulatory requirements.
As Guoren Insurance continues its reform journey, market observers are closely watching whether its decisive actions will lead to a successful turnaround.