Source: Baoguan
Since 9, insurers have frequently increased their capital. The most notable development occurred on 6 in 9, when the Ministry of Finance announced direct capital injections totaling 700 billion yuan into five central state-owned insurance enterprises: 350 billion yuan to China Life Insurance Group, 100 billion yuan to Sinosure, and 70 billion yuan to China Taiping. PICC plans to issue A-shares to the Ministry of Finance as a specific investor, raising up to 150 billion yuan. China Reinsurance intends to raise 30 billion yuan through cash subscription of domestic shares by the Ministry of Finance.
The market generally views this capital injection into state-owned insurance groups as preventive. In the short term, it will alleviate pressure on solvency—particularly the core solvency adequacy ratio—caused by the downward shift in the "750 curve" (750-day moving average government bond yield curve). In the medium term, it will address concerns about allowing insurance funds to increase their allocation to long-term and mid-term investments. In the long term, it will enhance the industry capital strength and influence of central SOE insurers.
Excluding state-owned insurers' capital increases, three small and mid-sized insurance companies received capital injections in 9. On 21 of 9, the Fujian Financial Regulatory Bureau announced administrative licensing information: Strait Golden Bridge Property & Casualty Insurance was approved to increase its registered capital by 10 billion yuan, from 15 billion yuan to 25 billion yuan. Junlong Life Insurance recently announced that its shareholder meeting approved a capital injection proposal of 10 billion yuan, raising its registered capital from 26 billion yuan to 36 billion yuan. Chinese shareholder Xiamen C&D Group and foreign shareholder Taiwan Life each contributed 5 billion yuan; after the injection, both shareholders will maintain their respective 50% equity stakes unchanged. China Fishery Mutual Insurance Society issued an announcement on 23 of 9, stating that with approval from the National Financial Regulatory Administration, its operating funds (registered capital) have been increased to 5.5 billion yuan. The contributors include original shareholders such as the China Fishery Mutual Protection Association and the Zhejiang Province Fishery Mutual Protection Association.
Overall, insurance companies have been actively boosting their capital this year, with nearly 20 insurers accelerating their capital supplementation. In addition to the companies mentioned above, HSBC Life has raised capital twice this year, Huatai Life has secured nearly 10 billion yuan in additional funding, and regulatory approvals have also been granted for capital increase plans by Bohai Property & Casualty Insurance and Zhonghua United Life, among others.
Today, we review the capital increases by insurance companies so far this year.
1
Nearly 20 capital increases: Small and medium-sized insurers boost capital in multiple small-scale rounds; central SOEs receive 700 billion yuan injection from the Ministry of Finance!
Year-to-date, nearly 20 companies have announced or implemented relevant capital increase plans.
In January of this year, Strait Bridge Property & Casualty Insurance announced a capital injection plan totaling 10 billion yuan. Four companies, including Fujian Investment Development Group Co., Ltd., contributed 10 billion yuan, increasing the registered capital from 15 billion to 25 billion yuan. The regulatory approval for this capital injection was recently granted, and the transaction has been successfully completed.
In the same month, HSBC Life proposed a capital injection of 5.56 billion yuan from its sole shareholder, HSBC Insurance (Asia), which was approved by the Shanghai Financial Regulatory Bureau in 6, increasing the company's registered capital to 32.32 billion yuan. Notably, in 8 this year, HSBC Life announced its second capital injection plan for the year, with shareholders planning to inject 4.72 billion yuan, further raising the registered capital to 37.04 billion yuan, pending regulatory approval.
In April, China United Insurance Group and China United Property & Casualty Insurance Company—the two major shareholders of China United Life Insurance—proposed a combined capital injection of 3 billion yuan. Following the injection, their respective shareholding percentages will remain unchanged, while the company's registered capital will increase from 41 billion to 44 billion yuan. The approval for this capital injection was granted by the Beijing Financial Regulatory Bureau at the end of 6.
As May begins, insurers are accelerating capital increases. Bohai Property & Casualty Insurance received approval for a 0.93 billion yuan capital injection. Huatai Life's shareholder, Huatai Insurance Group, contributed the full 9.7 billion yuan, raising Huatai Life's registered capital from 43.125 billion to 52.825 billion yuan; this plan was approved by regulators this month. In April, ZhongAn Online P&C Insurance secured regulatory approval for a 2.15 billion yuan capital increase, boosting its registered capital from 14.698 billion to 16.848 billion yuan. Additionally, Lujiazui Cathay Life, a Sino-Taiwanese joint-life insurance company, has proposed a combined capital injection of 20 billion yuan by its two major shareholders, increasing registered capital from 30 billion to 50 billion yuan, pending regulatory approval. Meanwhile, Changsheng Life, facing solvency pressure, listed an equity expansion project on the Beijing Equity Exchange to attract new strategic investors.
In 8, Changjiang Property & Casualty Insurance announced plans to introduce Hubei Provincial Water Resources and Hydropower Planning Survey and Design Institute as a new shareholder. The company intends to issue an additional 2.49 billion shares, raising approximately 2.5 billion yuan. Registered capital will increase from 27.97 billion to 30.46 billion yuan, pending regulatory approval.
9 saw a surge in capital increases by domestic insurers. Junlong Life's shareholder meeting approved a 10 billion yuan capital injection, raising its registered capital from 26 billion to 36 billion yuan. Both Chinese shareholder Xiamen C&D Group and foreign shareholder Taiwan Life contributed 5 billion yuan each, maintaining their respective 50% ownership stakes post-increase. The previously mentioned 6 billion yuan capital increase for Haixia Jinqiao Property & Casualty Insurance also officially took effect this month, while China Fishery Mutual Society completed its 0.5 billion yuan capital injection.
The Ministry of Finance's 700 billion injection has propelled this year's capital increases by insurance companies to a peak. China Life Insurance (Group) Company announced that the Ministry of Finance will inject 350 billion into the company. PICC Group disclosed its plan to issue A-shares to specific investors, with the Ministry of Finance subscribing in cash; the fundraising amount will not exceed 150 billion. China Taiping Insurance Group stated that the Ministry of Finance will inject 70 billion into the group. Sinosure reported that the Ministry of Finance will inject 100 billion into the company. China Reinsurance Group revealed its plan to issue domestic shares to specific investors, with the Ministry of Finance subscribing in cash. The total fundraising target is RMB 30 billion, which, after deducting issuance expenses, will be entirely used to increase the company's core Tier 1 capital.
2
Multiple factors drive capital injections by insurers, but enhancing self-sustaining capability is the long-term solution.
From a fundamental perspective, insurance is a capital-intensive industry. As businesses expand and long-term protection policies accumulate, increased reserve requirements continuously deplete core capital. Overall, the industry's concentrated capital injection this year stems from three primary factors.
First, the C-ROSS Phase II framework is fully implemented, imposing stricter capital measurement standards. As a regulatory hard constraint, insurers must meet minimum thresholds of 50% for core solvency adequacy and 100% for total solvency adequacy. Under C-ROSS Phase II, asset and liability valuations and risk measurements are more conservative. Many institutions face tighter capital recognition rules; at the same business scale, capital consumption increases, putting passive pressure on solvency ratios. Raising capital remains the most direct method to bolster core Tier 1 capital. Compared with supplementary capital instruments like subordinated bonds, shareholder capital injections count directly toward core capital, offering the highest capital quality and serving as the preferred solution when solvency is under severe stress. For example, Bohai Property & Casualty Insurance reported a core solvency ratio of 103.2% and a total solvency ratio of 170.51% in Q1 this year—both significantly below the industry average (core: 210.6%, total: 242.6%). Following its capital injection in June, the company's Q2 core solvency ratio improved to 125.05% and total solvency ratio to 195.86%. Although still below the industry average, this represents a significant improvement.
Second, declining long-term interest rates continue to pressure reserve provisioning. With long-term life insurance policies having durations of 20–30 years, low-rate environments force insurers to increase liability reserves, eroding net assets and continuously depleting capital. This pressure is particularly acute for mid-sized and small life insurers undergoing transformation with heavy new business investment.
Finally, business expansion and strategic planning require capital support. For insurers with improving operations ready to expand, capital increases can raise underwriting limits and enable new business and channel initiatives. HSBC Life exemplifies this approach: since 2022, the company has successfully completed four capital injections and initiated a fifth. This follows its rapid growth and is a natural next step. Data shows that in 2022, HSBC Life's annual premium income was 37.25 billion yuan, rising to 136.05 billion yuan in 2025—a 265.23% increase over three years. Total assets also surged from 197.05 billion yuan to 550.85 billion yuan, necessitating parallel investments in risk management capabilities.
In addition, some local state-owned enterprises and industrial capital have leveraged capital increases to secure insurance and financial licenses. A few institutions have done so to resolve existing risks and address historical issues by increasing shareholder capital, thereby strengthening their balance sheets.
From the perspective of capital injection sources, most additional capital for small and mid-sized insurers comes from existing shareholders, including local state-owned entities, parent groups, foreign investors, and industrial capital. Some projects also raise funds publicly from qualified investors.
Overall, capital injections are merely external financing to improve capital metrics; they cannot fundamentally resolve operational issues for some insurers. For smaller and mid-sized insurers, only by continuously enhancing business granularity, reducing costs, and boosting profitability "self-generation" can they fully address excessive capital consumption and achieve sustainable long-term growth. In contrast, the Ministry of Finance's capital injection will effectively bolster the solvency buffer for top-tier central state-owned enterprises, expand their business ceiling, and grant them greater flexibility and freedom in product innovation and long-term capital deployment.
