Xinhua listed June sprints IPO Taikang or no intention

Recently, the message going around Xinhua life insurance and Taikang life insurance IPO. However, insurance regulatory Commission has made it clear that was received from the related company listing applications. The China business newspaper reporter was informed that the new China life insurance on June 15 submit a listing of related materials. Taikang stake in Goldman Sachs or has no listing plans. Listing no timetable before the news broke, the listing application was pending approval of the new China life insurance, but then the insurance expressly disclaims, did not receive the company's listing application. 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On April 7, Taikang high profile in New York announced the introduction of Goldman Sachs investment, Goldman Sachs Group acquired 12.02% Taikang stake, as the second-largest shareholder, the investment had been approved by the China insurance regulatory Commission, but the financial details of the transaction were not disclosed. The industry generally believe that Goldman Sachs as an investment bank as well as financial investors involved, to accelerate the process of Taikang listed. However, the reporter informed by such senior figures in the industry, Taikang may last two years no listing plans. "Large insurance companies, not all companies are listed as a public company. "Taikang one related to the matter said, listing is one of the strategic planning of the Taikang, but there is no specific timetable. After Goldman Sachs investment ping an of China (601,318, unit) 10 bring lucrative to Goldman Sachs. "Taikang is increasing very fast, after two years of performance enhanced, sent prices higher, Goldman Sachs's investment can earn higher returns. Therefore, Tai Hong not to worry, Goldman shares but description listed. "These analysts believe. Seen from the report, Taikang did "not bad money", and also by the subordinated debt to improve their capital adequacy ratios. Taikang life insurance solvency 177% at present, in a State of relative abundance. Xinhua life earlier this year launched the ' equity financing programme has been granted. Capital increase after $ 14 billion, Xinhua life insurance solvency 146.24%. Valuations have headroom for not including Taikang favored by Goldman Sachs, Xinhua life insurance have also been foreign investment banks sought after. In March this year, new China life insurance's second-largest shareholder Zurich Financial sells its stake in new China life insurance 20% equity 5% equity to the listing of Xinhua life insurance underwriters CICC with Nomura Securities. The two potential insurance unit prices have been rising. Xinhua life insurance share price from $ 5.99 in 2007 when the insurance guarantee fund took over/unit, to the 2009 Huijin took over $ 8.71/unit, Xinhua life insurance after ownership was a hot round, transfer prices surge. November 2010 empark investments and spend Ze group buy S*ST North Asia hold Xinhua life insurance cost up to $ 25 per cent of the equity, gold in March this year underwriters and Nomura purchase price up to $ 28/share. Under CITIC Securities (600,030, unit 's) insurance industry researcher Pan Hongwen of research, Xinhua life by 28 Yuan price market for 72.8 billion yuan, is expected 2010 company contains value about 39 billion yuan, a years new business value about 5 billion yuan, is implied new business multiples 6.8 times times, relative valuation P/EV (shares relative connotation value ratio) for 1.87 times times (increased funded completed), and peace and Turbo 2010 P/EV respectively for 1.63 times times and 1.59 times times, implied new business multiples respectively for 8.48 times times and 9.92 times times, therefore, Xinhua life level market auction price and currently second level market peace and Turbo valuation generally is, valuation also has upgrade space. Taikang life is also the case, according to foreign media reports, three institutions such as Goldman Sachs, 15.6% sold for $ 1.1 billion stake, Goldman Sachs purchased 12% shares, calculated according to the exchange rate at the end of last year 6.6227, Taikang could fetch about $ 46.7 billion, corresponding 2010 earnings (PE) 22.2 times times, net rates in (PB) 3.48 times times (not taken into account prior to listing on the issue, PB overvalued). Jinghua mountain a researcher Jens Scharping think, if listed, "Taikang life valuation in 80 billion yuan ~900 billion yuan, including net assets value (NAV) 15 billion yuan, and year effective business value (VIF) 20 billion yuan ~250 billion yuan, and future a years new business value (NBV) 40 billion yuan ~500 billion yuan; Xinhua life valuation about 90 billion yuan ~1000 billion yuan, including net assets value (NAV) 20 billion yuan, and year effective business value (VIF) 30 billion yuan and future a years new business value (NBV) 50 billion yuan. "Racing currently carrying on business, new China life insurance and Taikang listed, there is no specific timetable, and before the listing, the two companies on the scale of premiums and business competition is still intense, more realistic exercises to practice. From the perspective of two companies just released 2010 annual report, Taikang life insurance company's total equity 852 million shares $ 2.095 billion net profit, earnings per share of $ 2.45. New China life insurance 2010 total 1.2 billion shares in the share capital, net income of $ 2.251 billion, about $ 1.88 earnings per share. The two companies of the banking and insurance revenues are more prominent in the industry. Taikang annual report shows that in the insurance business revenue channel, Taikang life insurance premium income 15.738 billion yuan, banks and insurance premium revenue 48.177 billion yuan, total premium $ 65.46 billion, total 73.6% banks and insurance companies. Taikang fans paid $ 43.263 billion business last year, accounting for about 66% is slightly higher than, high value payment and renewal business to be in the first year of promotion. Xinhua life insurance company does not disclose banking and insurance, premium income for individual distribution. From danger and planted, due to enter the interest rate channel and high confirmation rate of dividends insurance premiums, dividends insurance have become the main line of the two companies. In 2010, the Taikang life insurance dividends risk scale 11.723 billion yuan, silver channel bonus insurance scale of 480. $ 5.9 billion, 91.3% per cent of total premium. New China life insurance 2010 premium 91.68 billion yuan, which dividend risk 86 billion yuan, 93.8% per cent of the total premium. Investment has been the Taikang in the strength of the industry. According to the Taikang investment revenues of 11.944 billion yuan last year, changes in fair value gains and losses as loss of $ 313 million. New China life insurance investment income of 10.684 billion yuan last year, changes in fair value gains and losses as loss of $ 158 million.