In-Depth Analysis of the 71% Equity Freeze of Qianhai United Property & Casualty Insurance: Can Huo Jianmei Lead the Company Out of the Baoneng Group Crisis?

Based on the latest collected information, I will provide you with an in-depth analysis report on the equity freeze, chairperson change, and solvency issues of Qianhai United Property & Casualty Insurance Co., Ltd.

---

According to the newly disclosed Q3 2025 Solvency Report and multiple public information sources, Qianhai United Property & Casualty Insurance Co., Ltd. (Xinjiang Qianhai United Property Insurance Co., Ltd.) is facing a severe situation of

[1][2]:

Crisis Type	Specific Performance	Severity
Equity Crisis	A total of 57.9% of equity has been frozen, and 20% of equity has been suspended from judicial auction twice	High Risk
Solvency Crisis	Core/Comprehensive Solvency Adequacy Ratio at 120.84%, predicted to drop to 105.43% in Q4	Alert
Governance Crisis	Comprehensive risk rating has been Class C for 6 consecutive quarters, frequent executive turnover	High Risk
Operating Crisis	RMB 64 million loss in Q1-Q3 2025, combined ratio as high as 228.93%	Severe

---

As of Q3 2025, the proportion of frozen equity held by Qianhai P&C’s shareholders has reached

, with details as follows[1][2]:

Shareholder Name	Shareholding Ratio	Frozen Ratio	Freeze Period
Shenzhen Jushenghua Co., Ltd.	20%	100%	Until March 2028 (6 rounds of freeze)
Shenzhen Shenyue Holding Co., Ltd.	20%	86%	Until September 2026
Shenzhen Jianye Engineering Group Co., Ltd.	20%	100%	Until July 2027 (3 rounds of freeze)
Kaixinheng Co., Ltd.	20%	3.5%	Until December 2027

[2]:

• July 2025
  : First judicial auction, starting price of RMB 30.8 million, approximately 30% discount from the appraisal price
• Result
  : Auction process suspended due to objections to the enforcement action from a third party
• October 9-10, 2025
  : Scheduled to restart the auction
• Result
  : Suspended again

As the core capital platform of Baoneng Group, Jushenghua failed to settle a

with Zhongrong Life Insurance (final court ruling in September 2024), resulting in the enforcement of its assets, with Qianhai P&C’s equity bearing the brunt[1][2].

---

Huo Jianmei, an ‘airborne executive’ from Ping An Group, has rich experience in the insurance industry[2][3]:

• Year of Birth
  : 1961, bachelor’s degree, member of the Communist Party of China
• Work Experience
  : Long-term tenure at Ping An Group
  • Head of a department at Ping An Group
  • Head of multiple professional institutions such as Ping An Property & Casualty Insurance
  • Experience spans insurance, investment, technology and other fields
• Tenure Start
  : Appointed as chairperson in January 2025 upon regulatory approval

Huo Jianmei faces extremely complex challenges after taking office:

1. Turbulence in the Executive Team
   • In May 2025, former general manager Li Gongni resigned, and Huo Jianmei served as the interim head concurrently
   • In August 2025, newly appointed deputy general manager Cao Jianjun was approved, but left office only 4 months after taking post
   • Currently, there are only 6 core executives, resulting in a fragile governance structure

2. ‘Stains’ of Previous Chairpersons

   Chairperson	Tenure	Issues
   Yao Zhenhua	2016-2017	Removed from post and banned from the insurance industry for 10 years in 2017
   Huang Wei	2017-2020	Investigated in 2022, and Baoneng Group quickly distanced itself from him
   Ji Guangheng	2020-2024	‘Special Commissioner’ of Baoneng Group
   Huo Jianmei	2025-present	Airborne from Ping An Group, entrusted with the mission of reform

---

According to the Q3 2025 Solvency Report[1][2][3]:

Indicator	Qianhai P&C	Industry Average	Gap
Core Solvency Adequacy Ratio	120.84%	212.9%	-43%
Comprehensive Solvency Adequacy Ratio	120.84%	240.8%	-50%
Comprehensive Risk Rating	Class C	Mainly Class A/B	Non-compliant

The company predicts that both indicators will drop to

in , approaching the 100% regulatory red line.

According to the Solvency Regulatory Rules for Insurance Companies (II)[4]:

Compliance Criteria	Current Status of Qianhai P&C	Judgment
Core Solvency Adequacy Ratio ≥ 50%	120.84%	Compliant
Comprehensive Solvency Adequacy Ratio ≥ 100%	120.84%	Compliant
Comprehensive Risk Rating ≥ Class B	Class C	Non-compliant

Conclusion

: Qianhai P&C is a

non-compliant solvency company

and has been classified as a high-risk institution by regulators[5].

---

Year	Premium Income (RMB 100 million)	Year-on-Year Change
2016	0.55	-
2017	10.24	+1762%
2018	15.42	+51%
2019	22.66	+47% (peak)
2020	21.31	-6%
2021	19.39	-9%
2022	14.43	-26%
2023	15.64	+8%
2024	15.25	-2.5%
2025Q1-Q3	8.69	-26.4%

In 2025, premium income has recorded year-on-year negative growth for three consecutive quarters: -15.14%, -24.42%, -29%[1][2]

[1][2]:

Year	Net Profit (RMB 100 million)	Remarks
2016	+0.01	One of the only profitable years
2017	-1.33
2018	-2.21	Largest annual loss
2019	-1.30
2020	-0.72
2021	-0.18
2022	+0.23	One of the only profitable years
2023	-0.89
2024	-1.12
2025Q1-Q3	-0.64	+73% year-on-year

Core operating indicators for Q1-Q3 2025[1]:

Indicator	Value	Normal Industry Level	Problem Diagnosis
Combined Ratio	228.93%	~100% for profitability	Seriously exceeded standard
Combined Expense Ratio	137.13%	~30-35%	+90.91 percentage points year-on-year
Combined Loss Ratio	91.79%	~60-65%	Relatively high

:

• Excessively high business acquisition costs: Paying handling fees far higher than the industry average to incentivize sales channels
• Low operational efficiency: Failure to effectively allocate fixed costs
• Weak internal control: Inability to reduce costs under the ‘Premium Rate Compliance’ policy

---

According to the company’s announcement, shareholders and related parties have been in arrears of insurance premiums of approximately

for a long time, involving 8 Baoneng Group-related enterprises[1][2].

Time Node	Event
December 2023	Originally scheduled to transfer to Yangzhou Baoneng Real Estate via debt restructuring
December 2024	Yangzhou Baoneng failed to fulfill its repayment obligation
2025	Debt transferred to Shenzhen Hongxing Laihua Hotel
September 2025	Completed asset restructuring (settled debt with 53 commercial shops)

: 100% equity of Tianjin Heruize (53 commercial shops), with an appraisal value of no less than RMB 96.94 million, has been transferred to Qianhai P&C[1][2].

Although the restructuring resolved the book risk, it

, reducing it to a ‘bearer’ of shareholders’ debts.

---

2015: Baoneng Group's 'barbarian invasion' of Vanke
    ↓
2017: Yao Zhenhua banned from insurance industry for 10 years
    ↓
2022: Huang Wei investigated, debt crisis fully erupted
    ↓
2023: Qianhai P&C started announcing connected transactions
    ↓
2024: RMB 2.025 billion debt ruling against Jushenghua
    ↓
2025: Equity freeze + auction suspension

:

1. Shareholder debt crisis → Equity freeze/auction
2. Shareholder liquidity crunch → Premium arrears
3. Equity instability → Frequent executive turnover
4. Governance chaos → Unsustainable business strategies
5. Sustained losses → Decline in solvency

---

Measure	Specific Content	Expected Effect
Introduce Strategic Investors	Resolve the equity freeze issue, seek investors with no bad records and insurance experience	Capital supplement + governance improvement
Accelerate Asset Disposal	Liquidate 53 commercial shops, optimize asset structure	Cash flow improvement
Expense Control	Control expense ratio in line with industry standards, optimize sales channel costs	Cost reduction and efficiency improvement
Cash Flow Management	Improve net cash flow from operating activities (has been negative for 3 consecutive quarters in 2025)	Liquidity guarantee

Measure	Specific Content	Expected Effect
Capital Supplement	Increase capital and expand shares, issue capital supplement bonds (subject to regulatory approval)	Solvency improvement
Business Structure Adjustment	Exit loss-making business lines, focus on high-quality businesses	Underwriting profitability improvement
Strengthen Corporate Governance	Stabilize the executive team, establish a long-term incentive mechanism	Strategic continuity
Improve Comprehensive Risk Rating	Upgrade from Class C to Class B	Regulatory rating improvement

Measure	Specific Content	Expected Effect
Complete Severance from Baoneng Group	Transfer equity to unrelated third parties, establish an independent governance system	Restoration of independence
Sustainable Business Model	Refined management, differentiated competition strategy	Long-term profitability
Enhance Risk Management Capability	Optimize underwriting strategy, strengthen reinsurance arrangements	Risk control

---

According to Q3 2025 data[5], among 156 insurers in the entire industry, only

:

Company Type	Company Name	Risk Rating	Reason for Non-Compliance
Property & Casualty Insurance	Qianhai P&C	Class C	Corporate governance risk
Property & Casualty Insurance	Asia Pacific P&C	Class C	Corporate governance risk
Property & Casualty Insurance	Anhua Agricultural Insurance	Class C	Corporate governance risk
Life Insurance	Huahui Life Insurance	Class C	Corporate governance risk

Hua’an Property & Casualty Insurance successfully upgraded from Class C to Class B in Q3 2025, and its experience is worth referencing[5]:

• Established a working group for turning losses into profits and risk resolution
• Adhered to problem-oriented and bottom-line thinking
• Explored refined management, and clarified management responsibilities at all levels
• Optimized business structure to enhance underwriting profitability
• Implemented differentiated development of branches with ‘one policy per branch’

---

Risk Type	Specific Content	Risk Level
Uncertainty of Equity Auction	Successful auction of Jushenghua’s equity may introduce new shareholders	High
Sustained Loss Risk	Expected loss of over RMB 80 million in 2025	High
Regulatory Risk	Continuous Class C rating may lead to stricter regulatory measures	High
Liquidity Risk	Premium decline coupled with high expenses, putting pressure on cash flow	High
Personnel Risk	Frequent executive changes make it difficult to sustain strategies	High

Factor	Potential Impact
Professional background of Huo Jianmei	Experience from Ping An Group may bring professional reforms
Possible marginal improvement in expense ratio	Strengthened control after the new management took office
Completion of asset restructuring	Historical legacy issues have been resolved
Favorable regulatory policies	Regulators have a clear supportive attitude towards the insurance industry

Qianhai P&C is facing not only a

, but also a . Against the backdrop of Baoneng Group’s debt crisis, the company needs to carry out comprehensive reforms from three dimensions: .

Although the 120% solvency adequacy ratio is above the 100% regulatory red line, it is significantly lower than the industry average (only 56% of the average), and is predicted to drop to the dangerous edge of 105.43% in Q4.

, otherwise it may face more severe regulatory measures, even affecting its business qualifications.

---

[1] Sina Finance - ‘Qianhai P&C’s ‘Tough Journey’: Amid RMB 63.85 Million Loss and 228.93% Combined Ratio’ (https://finance.sina.com.cn/money/insurance/bxyx/2026-01-06/doc-inhfiqwt1494875.shtml)

[2] Sina Finance - ‘Deputy General Manager Cao Jianjun Resigns After 4 Months in Office, Qianhai P&C Still Trapped in ‘Mist’’ (https://finance.sina.com.cn/stock/relnews/cn/2026-01-07/doc-inhfpfxi7221738.shtml)

[3] Eastmoney - ‘Another Executive Change at Qianhai P&C: Cao Jianjun Leaves After 4 Months, Corporate Governance Dilemma Persists’ (https://caifuhao.eastmoney.com/news/20260107163048813451620)

[4] Xinhua News - ‘Latest Solvency Scan of 156 Insurers: 4 Insurance Companies’ Solvency ‘Red Alert’’ (http://www.news.cn/money/20251110/200d846648d649049f3d6a56b286af3d/c.html)

[5] Soochow Securities - ‘Insurance Industry Review H1 2025 and Outlook’ (https://pdf.dfcfw.com/pdf/H3_AP202507181710800851_1.pdf)