Six Insurance Companies Increase Capital by Over 5 Billion Yuan Within the Year

Our reporter Yang Xiaohan

Recently, Qianhai United Property & Casualty Insurance Co., Ltd. (hereinafter referred to as “Qianhai P&C”) held its second extraordinary shareholders’ meeting for 2026. One of the agenda items was the “Proposal on Changing Registered Capital and Shareholders,” which was approved unanimously.

According to statistics from Securities Daily, including Qianhai P&C, six insurance institutions such as Ping An Life Insurance Company of China, Dajia Property & Casualty Insurance Co., Ltd., and AXA Global Reinsurance (Shanghai) Co., Ltd. have promoted capital increases this year, involving a total scale of over 5 billion yuan.

Zhou Jin, partner at Tianzhi International Financial Industry Consulting, stated that the main reason for insurance companies’ capital increases is the ongoing decline in interest rates, which puts continuous pressure on the industry’s reserve for claims and solvency adequacy ratio. Therefore, to maintain sufficient solvency levels to support business development, insurers need external capital injections, including shareholder capital increases and issuing capital supplement bonds.

At the same time, some insurers are also involved in equity changes during their capital increase processes. For example, the proposal disclosed by Qianhai P&C indicates plans to change both registered capital and shareholders simultaneously.

Regarding the impact of equity changes, Su Xiaotian, product manager at Beijing PaiPai Insurance Agency Co., Ltd. Shenzhen Branch, analyzed that equity changes have a dual effect on insurance operations: on one hand, transferring or introducing new shareholders without compensation helps optimize corporate governance, improve decision-making efficiency, and enhance risk resistance; on the other hand, adjustments to the equity structure often involve strategic reorientation, which may pose short-term challenges to operational stability. However, in the long run, rationalizing the capital structure will inject new momentum into the insurer’s development and promote high-quality, sustainable growth.

Zhou Jin also mentioned that introducing new investors and adjusting the equity structure may lead to appointments of directors, supervisors, and senior management, as well as strategic adjustments.

Looking ahead, Su Xiaotian believes that due to stricter solvency regulation requirements and the pressure on the asset side under a low-interest-rate environment, the demand for capital replenishment among insurers will remain high, with channels becoming increasingly diversified and normalized. Besides traditional direct shareholder capital increases, issuing perpetual bonds, subordinated bonds, or conducting equity financing (such as rights issues) will become important trends. For listed and pre-listing insurers, market-based financing methods will be used more frequently. Additionally, capital replenishment will further differentiate: leading high-quality insurers and foreign institutions with specialized features will have smoother financing channels, while some small- and medium-sized insurers will face pressure to supplement capital. In the future, industry capital will accelerate to concentrate in institutions with core competitiveness, driving high-quality business development through capital optimization.

(Edited by Qian Xiaorui)

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