China Coal Insurance, a general insurer, has posted losses of more than CNY41.37m ($6.1m) for the second quarter of this year, according to the company's 2Q2018 solvency report filed with the Insurance Association of China. The insurer made a net profit of CNY9.6m for the first quarter of this year.
In fact, since it was established in October 2008, China Coal Insurance has made a profit only one year -- 2014. Coupled with losses this year to date, the accumulated losses of the company has exceeded CNY500m, reports National Business Daily.
China Coal Insurance was founded by China Coal Energy Group and some local coal mine enterprises in coal producing Shanxi Province. In 2016, state owned Shanxi Financial Investment Holding Group stepped in and has become the company's largest shareholder, with a 44.44% stake.
The company's top five classes of business are motor, accident, and agriculture, liability and corporate property insurance. Among them, motor vehicle insurance accounted for about 80% of the overall premium income. The insurer operates in the provinces of Shanxi, Shandong, Henan, Hebei, Shaanxi and Anhui.
In line with the financial performance of the company, the solvency ratio has been declining. It stood at 159.18 at the end of June compared to 164.33 at the end of March.
There has also been a management reshuffle at the company at the end of last year and early this year. The change included the replacement of the chairman. The new chairman is Mr Guo Jianmn whose appointment was approved by the regulatory authorities in February 2018. He had previously served in several senior positions in the provincial government.
Expectations are high that the new management team would turn around the company. However, the insurer's financial performance for the first half of this year shows that improvement is likely to be gradual.