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, where a proposal to change the registered capital and shareholders was unanimously approved.

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 advanced 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 that, under the continuous decline of interest rates, the industry’s reserve for claims and solvency adequacy ratios are under constant pressure. 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 changes to their equity structure during the capital increase process. For example, the proposal disclosed by Qianhai P&C shows that it plans to change both its 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 the introduction of new investors and adjustments to the equity structure may lead to personnel appointments at the board and management level, as well as strategic adjustments.

Looking ahead, Su Xiaotian believes that, influenced by stricter solvency regulation requirements and the pressure on asset sides under low interest rates, the demand for capital replenishment among insurers will remain high, with channels becoming increasingly diversified and normalized. In addition to traditional direct shareholder capital increases, issuing perpetual bonds, subordinated bonds, or conducting equity financing (such as rights issues) through capital markets will become important trends. For listed and pre-listing insurers, the use of market-based financing methods will become more frequent. Meanwhile, 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 toward institutions with core competitiveness, and capital optimization will drive high-quality business development.

(Edited by: Qian Xiaorui)

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