Chinese multinational conglomerate Fosun International Limited, alongside its subsidiaries, has reported its financial performance for the first half of 2024 (1H 2024), with significant developments in its insurance business.
The group recorded total revenue of RMB97.84 billion and an industrial operation profit of RMB3.47 billion.
A key highlight was the sale of Fosun’s 9% shareholding in Belgian insurer Ageas to BNP Paribas for approximately €730 million.
Fosun’s insurance arm, Fosun Insurance Portugal, played a crucial role in the group’s performance, contributing to the RMB72.17 billion revenue generated by Fosun’s core subsidiaries, which include Yuyuan, Fosun Pharma, and Fosun Tourism Group.
Fosun Insurance Portugal continued its growth trajectory, with international business premiums reaching EUR885 million, making up over 30% of total premiums.
The net profit from international business was approximately EUR51 million, accounting for over 40% of the insurance subsidiary’s profit.
The group’s sale of its Ageas stake marks a strategic shift in Fosun’s insurance portfolio.
The transaction with BNP Paribas will be completed in two phases, with the first tranche of 4.8% of shares sold immediately and the remainder pending regulatory approvals.
This sale, valued at around €730 million, aligns with Fosun’s broader strategy of optimizing its asset mix and focusing on more profitable and strategic ventures within the insurance industry.
Fosun’s financial stability was underscored by an adjusted total debt-to-capital ratio of 50.2%, continuing a downward trend since 2020.
The group also saw a 4% year-on-year increase in overseas revenue, which reached RMB45.87 billion, highlighting the strength of its global operations, particularly in insurance markets outside of China.
In addition to its insurance operations, Fosun continued to invest in innovation, with a focus on enhancing its technological capabilities across its subsidiaries.
The group allocated RMB3.5 billion towards innovation in the first half of 2024, with notable advancements in pharmaceutical and healthcare-related insurance products, positioning itself for future growth in the insurance and broader financial services markets.
Looking ahead, Fosun’s chairman, Guo Guangchang, emphasized the group’s commitment to refining its insurance portfolio, expanding global operations, and leveraging its asset-light strategy to drive sustainable growth.
The divestment of the Ageas stake is seen as a strategic move to streamline Fosun’s insurance investments and enhance its focus on high-potential markets and innovative insurance solutions.
