Cathay Life Insurance 10% Equity Second Auction Withdrawn, Finally Turned Profitable in 2024 After 7 Consecutive Years of Losses

Source: Taishan Finance

Taishan Finance Reporter Lin Junjie

Taishan Finance has learned from Alibaba Asset Auction Platform that the secondary judicial auction of the 10% equity (150 million shares) held by Luan County Jinxing Mining and Tai Life Insurance, originally scheduled to start on March 13, has been withdrawn. It is understood that before the withdrawal, the starting price for the second auction of this equity was reduced to 73.5642 million yuan, an 80% discount from the initial auction.

Behind this equity auction is Tai Life Insurance’s nine-year growth journey since its establishment in 2017, deepening its presence in the internet insurance sector. During this period, the company has achieved notable breakthroughs and turnaround in performance, but also faces challenges such as equity pledge freezes and the absence of core management.

According to public reports, the withdrawal of this second auction of equity was explicitly stated by a responsible person related to Tai Life Insurance, who clarified that the withdrawal was initiated by the court, with the specific reasons still unclear. As of press time, Alibaba Asset Auction Platform shows that the equity was withdrawn by the applicant and other creditors.

In January 2017, Tai Life Insurance was officially established, becoming the first Chinese-funded life insurance company headquartered in Shandong. It was jointly initiated by CITIC Guoan, EasyHome, Tencent’s wholly owned subsidiary Beijing Yingke Bicheng Technology, and six other companies, with a registered capital of 1.5 billion yuan. From the outset, the company targeted the internet insurance sector, setting the goal to “build an innovative life insurance company with obvious internet advantages and outstanding value creation ability.” Leveraging its differentiated positioning, it quickly gained market recognition, insuring 600,000 people within five days of opening and surpassing one million users in the first month, laying a solid user foundation for subsequent development.

The first seven years after its founding were a period of deep cultivation and continuous investment, during which the company experienced losses. From 2017 to 2023, its insurance business revenue grew from 153 million yuan to 2.325 billion yuan. Although the scale steadily expanded, due to costs related to channel development, technological investment, and product R&D, net profit remained negative for seven consecutive years, with a record loss of 571 million yuan in 2023, the highest since its establishment.

During this period, the company did not slow down its development despite losses. Instead, it continued to strengthen its foundation: building a comprehensive business ecosystem with multi-channel cooperation in bancassurance, internet, group insurance, and agency channels, insuring 2.7 million customers, and accumulating hundreds of thousands of fans on its self-operated platform “Yishengbao.” It actively embraced digital transformation, supporting 100% of cases online, with small claims settled within three hours, creating a service brand characterized by “warmth and speed.” It also developed specialized products to meet inclusive financial needs, gradually forming a diversified product system.

Meanwhile, hidden risks in the equity layer gradually emerged. As early as the first quarter of 2019, all 14% equity held by Jinxing Mining was pledged and frozen. In January 2023, this portion of equity was auctioned, but the auction was halted after creditors withdrew enforcement applications, foreshadowing future equity auctions. The absence of core management also began during this period; after General Manager Li Yuquan resigned in October 2020, the position has remained vacant for over five years, managed only by four senior executives overseeing various businesses.

2024 marked a critical turning point in Tai Life Insurance’s nine-year growth. It was the eighth year since its founding, and the company achieved a turnaround, with insurance revenue of 2.137 billion yuan and a net profit of 12 million yuan, ending a seven-year loss streak. The turnaround reflected the results of years of strategic layout: deepening its presence in the internet insurance sector brought stable premium inflows; digital services improved customer retention; a diversified product system accurately matched market needs, with “Tai Life Wish You Peace Malignant Tumor Disease Insurance (Internet)” winning the “Shandong Good Financial Product • Inclusive Finance Product” award.

However, at the same time, the company’s equity issues worsened. In 2024, multiple proposals at the shareholders’ meeting were not approved, and governance conflicts among shareholders began to surface. In June of that year, Tencent’s holdings of 1% of the shares were transferred to Shenzhen Jinchengshi Engineering Industry, breaking the previous “tripartite” equity structure. Jinchengshi’s shareholding rose to 21%, becoming the single largest shareholder, adding uncertainty to the company’s future development.

In 2025, Tai Life Insurance continued its profitability, with insurance revenue reaching 2.57 billion yuan and net profit of 1 million yuan for the year. By the end of Q4, the core solvency adequacy ratio and comprehensive solvency adequacy ratio reached 185.60% and 186.40%, respectively, maintaining regulatory compliance and indicating a stable operational outlook.

The company continued to deepen its “Insurance + Health + Pension” model, forming a “five major categories and eighteen items” health management service system and a “three major categories and six items” pension service system. It also received recognition for its green finance case supporting ecological protection in the Yellow River Basin. In terms of technology, it accumulated data on over ten million customers and policies, further improving operational efficiency through data risk control and intelligent customer service systems.

However, worsening equity issues became a major obstacle in 2025. In October, Jinxing Mining’s 10% equity was listed for auction for the first time, with a starting price of 91.955 million yuan, but the auction was unsuccessful due to no bids. The fourth-quarter solvency report showed that 40% of the company’s equity was pledged or frozen, involving four shareholders and 600 million shares, including the entire 300 million shares pledged by CITIC Guoan, and partial pledges by Qinhuangdao Yuming Real Estate and Shenzhen Hefengtai Technology. The high pledge ratio of major shareholders not only limited their voting rights but also led to governance deadlock, becoming a key factor restricting the company’s development.

At the start of 2026, Tai Life Insurance celebrated its ninth anniversary. The company’s total assets approached 15 billion yuan, establishing a solid position in the internet insurance sector with a differentiated competitive advantage. However, the upcoming secondary auction of Jinxing Mining’s equity in March again put the company in the spotlight. The starting price was reduced to 73.5642 million yuan, with a deposit of 10 million yuan, but so far, no bids have been received. If it fails again, the disposal of the equity may fall into deadlock.

From its origins as an internet insurance star to nine years of profitable growth and a diversified business ecosystem, Tai Life Insurance’s journey exemplifies how small and medium-sized life insurers can develop niche sectors and achieve high-quality growth. Yet, issues like pledged and frozen equity, governance challenges, and the absence of core management still test this young insurer. How to resolve the equity deadlock, improve governance, and fill management gaps will be crucial for Tai Life Insurance’s future beyond its internet insurance specialization, determining whether it can continue to grow steadily amid fierce market competition.