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

Investing in stocks? Rely on Golden Kylin Analysts’ Reports—authoritative, professional, timely, comprehensive—helping you uncover potential thematic opportunities!

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, and AXA Global Reinsurance (Shanghai) have advanced capital increases this year, involving a total scale of over 5 billion yuan.

Tianzhi International Financial Industry Consulting Partner Zhou Jin said that the main reason for insurance companies’ capital increases is that, under the continuous decline of interest rates, the industry’s reserve for insurance liabilities and solvency adequacy ratio are under ongoing 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 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 of Shenzhen Branch of Beijing PaiPaiWang Insurance Agency Co., Ltd., analyzed that equity changes have a dual effect on insurance companies’ operations: on one hand, transferring or introducing new shareholders without compensation helps optimize corporate governance structures, 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 stated that when insurance companies introduce new investors and adjust their equity structures, it may lead to appointments of directors, supervisors, and senior management, as well as strategic adjustments.

Looking ahead, Su Xiaotian believes that, influenced by stricter solvency regulation requirements and the pressure on asset sides 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, the use of market-based financing methods will become more frequent. Additionally, capital replenishment will further show differentiation: 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.