On 2026-10-16, financial regulators in Shanghai and Shenzhen disclosed administrative penalties against Yongcheng Property & Casualty Insurance, involving one branch office and four individuals, with total fines amounting to 61 ten-thousand yuan. The Shenzhen branch and three individuals were collectively fined 51 ten-thousand yuan; in Shanghai, Sun Zengchan received a warning and a fine of 10 ten-thousand yuan for issues related to clause rate usage and health & accident insurance underwriting management during his tenure as Assistant President and Vice President.
This is not the first time EverBright Property Insurance has been penalized. Previously, its headquarters was fined 147 million yuan for issues including out-of-area operations, improper use of policy terms and rates, and underwriting authority management. Branches in Jiangsu, Jiamusi, Zhengzhou, and other locations were also penalized for fabricating expenses or creating false documentation.
At the same time, the company reported growth in both operating revenue and net profit attributable to parent company shareholders in the first half of 2026. This property insurance company, initiated by China Huaneng Group and specializing in power and energy insurance for over two decades, now faces a dual challenge: improving operational performance while addressing compliance issues in multiple regions.
Shenzhen institution and individuals fined 51 million yuan; Shanghai holds former executives accountable.
The Shenzhen Financial Regulatory Bureau disclosed that the primary violations by Yongcheng Property & Casualty Insurance Company's Shenzhen Branch and relevant responsible individuals were "untrue data." The institution was fined 35 million yuan; Chen Zhenhua received a warning and a fine of 2 million yuan, while Yan Hao and He Bing each received a warning and a fine of 7 million yuan. In total, the institution and individuals were penalized 51 million yuan.
The penalty decision No. 2026 198 issued by the Shanghai Financial Regulatory Bureau targets Sun Zengchan personally. He was warned and fined {20,000 yuan} for failing to use insurance clauses and premium rates as approved or filed, and for lax underwriting management in health and accident insurance business.
As early as 9/16, one month ago, the Shanghai Financial Regulatory Bureau disclosed penalties against Yongcheng Property & Casualty Insurance Company. The company was warned and fined 147 yuan for operating insurance business outside its approved region, failing to use approved or filed insurance terms and rates in compliance with regulations, having inadequate internal controls over insurance operations, and lax underwriting authority management for health and accident insurance. Han Liang, former Assistant to the President and Vice President, was also warned and fined 10 yuan for his responsibility regarding violations in the use of insurance terms and rates and insufficient oversight of health and accident insurance underwriting.
Regarding the penalty disclosed in 9, Chenggong Property Insurance previously stated that it accepts the regulatory penalty decision and will pay the fine as required while continuously improving its internal control and compliance management.
Multiple regional branches penalized for reimbursement violations and non-compliant financial documentation
Prior to the Shenzhen branch's penalty, Yicheng Property & Casualty Insurance had already faced regulatory actions at multiple branches over issues related to expenses and authenticity of documentation.
The company's 2026 semiannual report disclosed that on 2/25, the Jiangsu Regulatory Bureau issued an administrative penalty decision against the Jiangsu Branch for reimbursing expenses through fictitious business activities and management fees. The institution was fined 21 million yuan, and relevant responsible individuals received warnings and fines.
In the penalties disclosed in 6, Jiamusi Central Branch was fined 21 yuan for preparing false financial documents, and its then-general manager Zhang Weidong received a warning and was fined 4 yuan. In the penalties disclosed on 9 month 24, Zhengzhou Central Branch was fined 30 yuan for preparing or providing false reports, statements, documents, or materials, and its then-deputy general manager Meng Lingpu received a warning and was fined 5 yuan.
These penalties reveal that Yongcheng Property & Casualty Insurance Company's compliance issues span grassroots expense reimbursements, data management, and headquarters business authorization. For a national property insurer, these problems affect the quality of information underlying operations and impose higher demands on headquarters inspections, rectification efforts, and accountability implementation.
Parent company net profit rose by 20%; health and accident insurance losses narrowed but remained over $100 million.
Yongcheng Property & Casualty Insurance's business features are closely tied to its shareholder background.
Established in 2004, the company was founded by Huaneng Group as the lead initiator, in collaboration with other major central state-owned power generation groups. Headquartered in Shanghai, it has a registered capital of 21.78 billion yuan. Listed on the New Third Board in 2015 12, the company's controlling shareholder is Huaneng Capital, and its ultimate controlling party is Huaneng Group.
As of the end of 6 2026, Huaneng Capital held 20% and Northern United Power held 7.92%. Both are ultimately controlled by Huaneng Group. Other major shareholders include Fengxin Financial, National Energy Capital, Shenzhen Energy (000027), Datang Capital, Huadian Industrial Finance, State Power Investment Corporation, and Swiss Reinsurance.
This industry backdrop provides a foundation for the company to develop specialized business operations. According to the semi-annual report, in 2026, premiums from power and energy customers accounted for 52.32% of total premiums. The company underwrites more than 40% of national installed capacity and has designated power and energy services as its core strategic focus.
From an operating results perspective, Yongcheng Property & Casualty Insurance maintained growth in the first half of the year.
The 2026 semi-annual report shows the company achieved operating revenue of 38.85 billion yuan, up 2.30% year over year; original premium income of 46.70 billion yuan, up 5.83% year over year; and consolidated total profit of 2.12 billion yuan, up 22.16% year over year. As of the end of 6, total consolidated assets reached 139.53 billion yuan, an increase of 5.82% from the beginning of the year. Net profit attributable to shareholders of the listed company was 1.56 billion yuan, up 20.65% year over year; net profit attributable to shareholders after deducting non-recurring gains and losses was 1.57 billion yuan, up 25.04% year over year. Net cash flow from operating activities for the same period was 7.26 billion yuan, down 36.89% year over year, but remained in a net inflow position.
However, operating performance varied across business segments. According to the semi-annual report, insurance service revenues for motor vehicle insurance, property insurance, and accident & health insurance in the first half of the year were 12.71 billion yuan, 15.99 billion yuan, and 7.41 billion yuan, respectively; corresponding insurance service expenses were 12.15 billion yuan, 13.80 billion yuan, and 8.47 billion yuan. Among them, insurance service revenue for accident & health insurance grew by 10.07% year over year, while insurance service expenses remained higher than revenue.
As of the end of 6, the company's core solvency adequacy ratio was 126.08%, the comprehensive solvency adequacy ratio was 165.43%, and the risk composite rating reported in the semiannual report was BB.
Power Sector Shareholders Seek Exit Multiple Times, 6.57% Equity Stake Raised Nearly 20%
Beyond operations and penalties, another development attracting market attention in recent years is that some power sector shareholders of Yongcheng Property & Casualty Insurance have sought to transfer their equity stakes.
Datang Capital, Huadian Industrial Finance, SPIC, and shareholders related to China Southern Power Grid all listed their shares in Yongcheng Property Insurance for transfer, representing ownership stakes of approximately 7.6%, 7.6%, 6.57%, and 3.28% respectively, totaling about 25.05%.
Notably, SPIC's equity stake underwent a widely watched "price increase and relisting": In 2023 9, it proposed to transfer 1.43 billion shares of Yongcheng Property Insurance, representing 6.57% of total share capital, with an initial listing price of approximately 2.19 billion yuan; when it was relisted in 2024 11, the base price rose to approximately 2.62 billion yuan—an increase of about 4279.71 million yuan, or roughly 19.56%—though the announcement did not disclose the reason for the price hike.
The Beijing Equity Exchange Platform later disclosed that the transfer of 1.43 billion shares was re-initiated for pre-disclosure on 2025-11-26.
However, the 2026 semi-annual report shows that shareholdings by the top ten shareholders remained unchanged during the reporting period. Datang Capital, Huadian Chanrong, and State Power Investment Corporation continued to hold 7.6%, 7.6%, and 6.57% of shares, respectively. The controlling shareholder and actual controller remain unchanged.
