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 one of the agenda items was the “Proposal on Changes to 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 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 the ongoing decline in interest rates, which continues to put pressure on the liability reserve and solvency adequacy ratio of the insurance industry. Therefore, to maintain sufficient solvency levels to support business development, insurers need external capital injections, including shareholder capital increases and issuance of 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 this time shows 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 company operations: on one hand, transferring or introducing new shareholders without compensation helps optimize corporate governance structures and improve decision-making efficiency and 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 appointments of directors, supervisors, and senior management, as well as strategic adjustments.

Looking ahead, Su Xiaotian believes that, under stricter solvency regulation requirements and the pressure on asset sides in 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) through capital markets will become important trends. This is especially true for listed and pre-listing insurers, where market-based financing methods will be used more frequently. Meanwhile, capital replenishment will further show a polarized trend: 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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