Reporter Deng Xiongxiong of the Securities Times
In the past month, multiple insurance companies have announced capital increases, drawing market attention.
Ahead of the National Day holiday, Guobao Life and China Merchants Renhe Life both announced their plans to increase registered capital. According to the announcements, Guobao Life's total shares will rise from 19.8 billion to 45.21 billion, increasing registered capital by approximately 25.41 billion yuan; China Merchants Renhe Life plans to issue about 18.57 billion additional shares, raising roughly 26.56 billion yuan in funding.
Two insurers plan to increase capital by more than 25 billion yuan each.
Guobao Life Insurance Co., Ltd. announced that it plans to increase its share capital by approximately 25.41 billion shares, raising the total share count from 19.8 billion to 45.21 billion shares. The price per new share is 1.21 yuan. This increase will add approximately 25.41 billion yuan to registered capital, with the remaining premium of about 5.34 billion yuan recorded in the company's capital reserve.
In this capital increase, 1 of the company's original 9 shareholders participated: Sichuan Financial Holding Group Co., Ltd. (hereinafter referred to as "Sichuan Jinkong Group"), which subscribed for approximately 8.47 hundred million shares with an investment of about 10.25 billion yuan. Additionally, 8 new prospective shareholders joined the round. Upon completion of the capital increase, Sichuan Jinkong Group will retain its shareholding at 33.33% and remain the company's largest shareholder. The above change in registered capital shall become effective upon approval by the relevant regulatory authority.
On the same day, China Merchants Renhe Life Insurance also announced that it held an extraordinary shareholders' meeting on 9/15 to approve a resolution on capital increase and share expansion. According to the resolution, the company plans to issue approximately 18.57 billion new shares, raising about 26.56 billion yuan, all of which will be subscribed by its shareholder, China Merchants Financial Holdings Co., Ltd.
Upon completion of this capital increase and share expansion, China Merchants Renhe Life's registered capital will rise from approximately 66 billion yuan to approximately 84.57 billion yuan. China Merchants Renhe Life stated that the raised funds will be used to meet regulatory requirements for solvency adequacy ratios, strengthen the company's risk resilience, promote core business growth, and ensure the successful implementation of its "15th Five-Year" plan.
Multiple insurance companies announced capital increases within the year.
A review of the China Insurance Association website by a Securities Times reporter reveals that since 9, 5 insurers have disclosed capital increase plans, while a total of 13 insurers have announced capital increases year-to-date.
In addition to the two insurers mentioned above, China Fishery Mutual Insurance Society, Junlong Life, Guofu Life, Yangtze Property & Casualty, HSBC Life, and others have also disclosed their capital increase plans.
In accordance with the announcement, to further advance sound operations and sustainable development in compliance with regulatory requirements and organizational bylaws, and considering actual circumstances, China Fishery Mutual Insurance Society plans to increase its operating capital by 5000 million yuan. Upon completion of this capital increase, the Society's operating capital (registered capital) will rise from 5 billion yuan to 5.5 billion yuan.
The announcement states that Junlong Life Insurance's registered capital is proposed to increase from 26 billion yuan to 36 billion yuan, with a total capital injection of 10 billion yuan. No new shareholders are added; both existing shareholders will contribute 5 billion yuan each in a single payment. After the capital increase, both shareholders will maintain their respective shareholding ratio of 50%.
Guofu Life Insurance's registered capital is proposed to increase from approximately 20.47 billion yuan to about 24.97 billion yuan. This capital injection amounts to 4.5 billion shares at a price of 1.2 yuan per share. Previously, the company received approval last year for a capital injection of approximately 1.21 billion yuan, and the industrial and commercial registration changes were completed in 3 this year.
In 8 this year, Changjiang Property & Casualty Insurance Co., Ltd. convened an extraordinary shareholders' meeting to approve the company's capital increase and share expansion plan. Under this plan, new investor Hubei Provincial Water Resources and Hydropower Planning Survey & Design Institute Co., Ltd. was brought in via non-public agreement at a price of 1.004 yuan per share. The capital raised totaled 2.49996 billion yuan, with 2.49 billion new shares issued, increasing registered capital from 2.49 billion yuan to 30.46 billion yuan.
In the same month, HSBC Life disclosed that its sole shareholder, HSBC Insurance (Asia) Company Limited, plans to increase capital contribution by 4.72 billion yuan. Upon completion, the company's registered capital will rise from 32.32 billion yuan to 37.04 billion yuan. If this capital injection is successfully completed, it will be HSBC Life's second capital increase in 2026 years. The company previously received approval for a 5.56 billion yuan capital increase in 6, which raised its registered capital from 26.76 billion yuan to 32.32 billion yuan.
In 6, Lujiazui Guotai Life Insurance announced that, following shareholder approval, a resolution was passed to increase its registered capital. This capital increase will be funded by existing shareholders totaling RMB 20 billion, with Shanghai Lujiazui Financial Development Co., Ltd. and Guotai Life each contributing RMB 10 billion. The increase will take effect upon regulatory approval. Upon completion, the company's registered capital will rise from RMB 30 billion to RMB 50 billion.
On 5 13, Huatai Life held a shareholders' meeting to approve the capital increase proposal. Under this plan, the company intends to raise its registered capital in 2026 by issuing 9.7 billion new shares, raising a total of 9.7 billion yuan. Upon completion of the issuance, the registered capital will increase from 43.125 billion to 52.825 billion yuan. The regulatory approval for this capital increase was received in 9.
On 4/30, China United Life held an extraordinary general meeting to approve increasing the company's registered capital from 41 billion yuan to 44 billion yuan. No new shareholders were added, and existing shareholders' equity stakes remain unchanged following this capital increase. The capital injection plan received regulatory approval in 6.
At the beginning of this year, Dajia Property & Casualty Insurance Co., Ltd. announced its plan to increase its registered capital by 15 billion yuan to improve its asset structure, maintain adequate solvency, and accelerate business transformation. The additional capital will be subscribed by existing shareholder Dajia Insurance Group using its own funds. Following the capital increase, the company's registered capital will reach 55 billion yuan, with existing shareholders maintaining their current ownership stake of 100%.
Insurers ramp up resources to meet two key demands
Insurers are raising capital primarily to meet capital replenishment and sustainable growth needs. Disclosures from multiple insurers indicate that raised funds will be used to bolster capital, improve solvency adequacy ratios, strengthen risk resilience, and support the company's steady and continued business growth.
On 5/30, Lujiazui announced that to enhance the solvency of its joint venture, Lujiazui Guotai Life Insurance, under its wholly-owned subsidiary Shanghai Lujiazui Financial Development Co., Ltd. (referred to as "Lujifa"), and ensure its stable operations, the company will inject 10 billion yuan in own funds into Lujifa. These funds will be used exclusively for Lujifa's proportional capital increase alongside other shareholders of Lujiazui Guotai Life Insurance.
In 9, the regulatory authority approved a change in the registered capital of Straits Insurance. The company stated: "This is a key strategic move to optimize our capital structure, strengthen our development foundation, and enhance our overall competitiveness." Following this capital increase, Straits Insurance's registered capital will rise to 25 billion yuan. This will significantly improve its solvency ratio, bolstering its capital strength, risk resilience, underwriting capacity, and service guarantees. Additionally, investments in technology and talent will be further intensified.
Analysts believe insurance firms recapitalize because low interest rates suppress investment returns and intensify asset-liability matching pressures. Meanwhile, business expansion and increased allocation to risk assets like equities continuously consume solvency capital. Recapitalization strengthens the capital base, improves solvency ratios, and creates room for long-term investments.
On 9/6, the Ministry of Finance announced it will issue RMB 3000 billion in special sovereign bonds to support 8 central financial institutions in bolstering their core Tier 1 capital. Notably, for the first time this year, the targeted capital injection includes 5 central insurance SOEs, totaling RMB 700 billion. Industry experts state that this capital increase by the Ministry of Finance represents a proactive, forward-looking measure—essentially "preparing for a rainy day"—to foster high-quality development among central financial institutions and help sustain steady macroeconomic growth.
In fact, multiple analyst reports indicate that current solvency adequacy ratios for large insurers are robust. Capital supplementation is primarily a precautionary measure to address uncertainties in the insurance sector—particularly life insurance—amidst low interest rates, as well as potential capital drain from regulatory efforts encouraging long-term funds to actively enter the market.
