Shenzhen, Feb. 15, 2015 /PRNewswire/ -- Internet finance is undoubtedly one of the hottest keywords at present. Concepts such as crowdfunding, P2P, third-party payment, and big data finance continue to emerge, and the capital market has shown strong favor and keen interest in them. On February 13, on the eve of the upcoming Year of the Sheep Spring Festival,Tuniu International (stock code: 300178) along with six other companies jointly dropped a major piece of news to the capital market by announcing the establishment of a reinsurance joint venture. Tuniu International plans to invest 300 million yuan, holding a 10% stake, while other initiators include Qianhai Financial Holdings, China Post, Zhiyuan Investment, Aishida, Seven Wolves, and Qitian Holdings. As soon as the announcement was made, major securities firms began analyzing it. The new concept of "reinsurance" instantly caught public attention, and Tuniu International's stock hit the daily limit just half an hour after trading opened, fully reflecting investors' strong recognition of this new internet finance concept.
The term "reinsurance" belongs to a specialized field and remains relatively unfamiliar to most people. In fact, however, reinsurance business has become one of the key focuses in the development of the national insurance market. Reinsurance, or insurance for insurers, refers to the practice where an insurer transfers part of the insurance liability it assumes to other insurers. China’s reinsurance business started relatively late, and currently, there is only one domestic reinsurance company, China Re. But according to projections based on the targets of the new “Ten National Measures” for insurance, China’s reinsurance market is expected to reach 336.5 billion yuan by 2020, offering at least 2.3 times the current development potential and showing huge promise. In line with policy requirements, China will deepen the reform of reinsurance regulatory systems, accelerate the development of the reinsurance market, and foster and grow reinsurance market players. The establishment of Qianhai Reinsurance Co., Ltd. with participation from Tuniu International and several other top-tier companies not only breaks the single structure of the reinsurance market but also is expected to share in the policy benefits brought about by the construction of the Qianhai reinsurance center in Shenzhen.
Starting with traditional business travel services, Tuniu International has, since its listing in 2011, begun incubating internet finance businesses around its industrial foundation. It has successively established brands in third-party payment, microloans, and P2P lending, all of which have achieved performance beyond expectations. In 2015, it forcefully entered the insurance business and chose the new concept of reinsurance as its entry point, fully demonstrating its precise foresight in market judgment. The reinsurance industry has good development prospects and high barriers to entry. Tuniu International will undoubtedly use this to add a significant profit point and fully realize the value of this investment. In addition, through the reinsurance business, Tuniu International will deepen relationships with insurance companies, directly enter the core of the industry chain, provide potential support for future entry into the insurance brokerage field, accumulate substantial insurance resources, and at the same time lay the foundation for launching new travel finance businesses going forward.
In the first three years following its listing, Tuniu International focused on nationwide expansion in the business travel market and established a solid leading position in the air ticketing business. Last September, marked by the acquisition of Xinxin Travel, Tuniu International kicked off its second three-year plan in a truly impressive manner. The “Big Travel × Internet × Finance” strategy will serve as its development beacon going forward. Venturing into the reinsurance business marks the comprehensive expansion of Tuniu International’s financial segment. Nationally speaking, Tuniu International is currently among the companies with the most complete set of internet finance licenses and the greatest growth potential. Riding the wave of internet finance, along with a solid industrial foundation, Tuniu International’s future is definitely something to look forward to.