China Aviation Industry Corporation's insurance landscape continues to shrink: plans to liquidate its stake in its insurance brokerage subsidiary.

Recently, reporters noticed that the transfer of 100% equity of Shanghai Jingxi Insurance Brokerage Co., Ltd. (hereinafter referred to as “Jingxi Insurance Brokerage”) has begun pre-disclosure on the Beijing Equity Exchange. The holder of this equity is AVIC Investment Holding Co., Ltd. (hereinafter referred to as “AVIC Investment”), a member of China Aviation Industry Corporation.

(Source: Beijing Equity Exchange)

China Aviation Industry Corporation was once a strong entrant into the insurance industry. In 2011, China Aviation Industry Group and France’s Allianz Group jointly initiated the establishment of AVIC Allianz Property & Casualty Insurance (now renamed “Allianz Property & Casualty Insurance”), with each holding 50%. Ten years later, in 2021, China Aviation Industry Group transferred its 50% stake in AVIC Allianz Property & Casualty Insurance to AVIC Investment. The same year, AVIC Allianz Property & Casualty Insurance promoted a capital increase, with AVIC Investment investing 150 million yuan.

At that time, AVIC Investment’s shareholder, AVIC Capital, stated that its strategic goal was to build a comprehensive financial services platform. After acquiring the equity in AVIC Allianz Insurance, AVIC Capital and AVIC Investment would add property and casualty insurance licenses, further improve financial layout, and enhance the company’s core competitiveness.

However, just two years later, in September 2023, AVIC Investment announced it would list for sale its entire 50% stake in AVIC Allianz Property & Casualty Insurance, with a transfer price of 885 million yuan. Regarding this equity sale, AVIC Allianz Insurance stated that the shareholders aimed to optimize the financial business structure and focus on serving the aviation main business. The equity was ultimately acquired by Guozi Shudao Investment Group.

With this, a significant part of China Aviation Industry Group’s insurance landscape has been withdrawn. The remaining focus is on “light-asset” insurance intermediary companies.

In 2020, according to Tianyancha information, AVIC Investment completed its capital contribution to Jingxi Insurance Brokerage. Since then, Jingxi Insurance Brokerage has been strongly associated with the “aviation” label, gradually building a product matrix based on aviation DNA: for corporate clients, including customized property risk management solutions (covering aviation industry, property insurance, logistics and freight insurance), employee benefits plans, directors and officers liability insurance, and insurance products for employees and families.

Latest performance data shows that by 2025, Jingxi Insurance Brokerage’s assets and operating income will reach 17.626 million yuan, with a net profit of 5.7387 million yuan. By the end of February 2026, total assets are 59.9434 million yuan.

Behind this further retreat, unlike the early years when capital flooded into the insurance industry and competed fiercely for licenses, today, amid industry deep adjustments and tightening regulatory policies, the once highly sought-after insurance licenses have lost their hotness, and premium space for licenses is continuously compressed. Coupled with policies like the “withdrawal of funds order,” state-owned enterprises are gradually returning to their main businesses, and the pace of divesting non-core financial assets has accelerated. China Aviation Industry Group’s successive withdrawals are a microcosm of this trend.

In addition to AVIC Investment, China Aluminum Group’s Yunnan Metallurgical Group has listed its equity in Chengtai Property & Casualty Insurance for the third time; Huatai Insurance, characterized by dispersed equity, has seen multiple share transfers in recent years involving Northeast Light Alloy Co., Ltd., China Shipbuilding Industry Corporation, and Jiangnan Shipbuilding (Group) Co., Ltd., among other central and state-owned enterprises; China National Railway Group’s China Renmin Property & Casualty Insurance’s approximately 5% stake was listed for liquidation by China Railway Construction Investment Group; China Telecom’s Tianyi Payment Technology publicly listed for transfer of 100% equity in Orange Insurance Agency.

In recent years, many insurance institutions’ equity transfer transactions have remained pending. Driven by the “return to main business” trend, the wave of equity withdrawals is expected to continue.

(Edited by: Liu Sijia)

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