Recently, insurance companies have frequently announced plans to increase their registered capital. According to data released by the China Insurance Association, 9 and onward, 5 insurers have disclosed capital increase plans. In the first three quarters of this year, a total of 13 small and medium-sized insurance institutions (including life insurers, property & casualty insurers, and reinsurers) announced capital increase plans, with a combined planned capital increase of approximately 134 billion yuan.
Experts said several insurers recently announced capital increase plans, driven by low interest rates, implementation of new accounting standards, and industry business structure transformation.
Smaller and medium-sized insurers plan capital increases
Total scale exceeds 10 billion yuan
In 9, insurers frequently announced capital increase plans. On 9 30, China Merchants Renhe Life Insurance Co., Ltd. (hereinafter referred to as "China Merchants Renhe Life") and Guobao Life Insurance Co., Ltd. (hereinafter referred to as "Guobao Life") sequentially disclosed their capital increase plans. China Merchants Renhe Life intends to increase its registered capital by 18.57 billion yuan, entirely funded by its shareholder China Merchants Financial Holdings Co., Ltd. Meanwhile, Guobao Life plans to raise its registered capital by 25.41 billion yuan, with contributions from original shareholder Sichuan Financial Holding Group Co., Ltd., along with five new shareholders: Yibin Development Holding Group Co., Ltd., Deyang Industrial Finance Service Group Co., Ltd., and Leshan State-owned Assets Investment and Operation (Group) Co., Ltd. Both capital increase proposals are pending approval from the insurance regulatory authorities before becoming effective.
This is a microcosm of capital increase plans disclosed by insurance companies this year. According to our记者's statistics, in the first three quarters of this year, 13 small and medium-sized insurance institutions—including Lujiazui Guotai Life Insurance Co., Ltd., Changjiang Property & Casualty Insurance Company (hereinafter referred to as "Changjiang P&C"), Zhonghua United Life Insurance Co., Ltd., Haixia Jinqiao Property & Casualty Insurance Company (hereinafter referred to as "Haixia Jinqiao P&C"), and Dajia Property Insurance Co., Ltd.—have disclosed capital increase plans totaling over 10 billion yuan.
Jiang Han, a senior researcher at Pangu Think Tank (Beijing) Information Consulting Co., Ltd., told Securities Daily that the insurance industry's wave of capital injections this year stems from three key factors: shrinking asset-side returns in a low-interest-rate environment, sustained capital consumption by long-term protection-focused liability-side businesses, and stricter capital measurement requirements under new accounting standards. Most institutions are proactively bolstering their capital buffers to avoid breaching regulatory limits as they expand operations. Additionally, following structural adjustments where many companies shifted from volume-driven growth to long-term premium-paying policies—which require higher capital occupancy—capital injections have become essential to align with the pace of new business development.
Excluding small and mid-sized insurers, in 9, the Ministry of Finance plans to inject a total of 3000 billion yuan into 8 central financial enterprises, including 5 insurance institutions. Specifically: PICC plans a private placement of no more than 150 billion yuan with the Ministry of Finance to bolster capital reserves; China Reinsurance (Group) Co., Ltd. will issue shares to specific investors, with the Ministry of Finance subscribing via cash injection for a planned raise of 30 billion yuan; and the Ministry of Finance will also inject 350 billion yuan, 70 billion yuan, and 100 billion yuan into China Life Insurance (Group) Company, Taiping Insurance Group of China, and Sinosure, respectively, totaling 700 billion yuan.
Yang Fan, General Manager of Beijing PaiPai Network Insurance Agency Co., Ltd., told the Securities Daily that injecting capital into state-owned large-scale insurance groups aims to strengthen their capital base and risk resilience, thereby better leveraging the insurance industry's role in serving the real economy, safeguarding livelihoods, and allocating long-term funds. These large insurance groups bear critical responsibilities in stabilizing market expectations, participating in long-term investments, and supporting national strategies. Given their substantial business scale, their capital needs are particularly pronounced. Against a backdrop of low interest rates and industry transformation, capital injections can further enhance solvency ratios, providing a more stable foundation for long-term investment, economic support, and improved service capabilities. This move also reflects the commitment of regulators and shareholders to the long-term, steady development of the insurance sector.
Multiple insurers increase capital
Backed by state-owned capital
A review reveals that multiple small and medium-sized insurers disclosed capital increase plans with local state-owned enterprises as investors.
For example, the 8 proposed new shareholders of Guobao Life Insurance are all state-owned companies in Sichuan Province; Hubei Provincial Water Resources and Hydropower Planning Survey and Design Institute Co., Ltd., a new shareholder disclosed in Changjiang Property Insurance's capital increase plan for 8, is a state-owned company in Hubei Province; the 4 investors disclosed in Strait Golden Bridge Property Insurance's capital increase plan for 1 are all state-owned companies in Fujian Province.
Yang Fan stated that for mid-sized and small insurers, introducing local state-owned capital shareholders can directly bolster capital and improve the solvency adequacy ratio, thereby supporting ongoing business operations. Additionally, these shareholders often provide assistance in resource synergy, corporate governance, and risk management, which helps enhance the company's long-term development capabilities. For mid-sized and small insurers undergoing transformation, bringing in strong shareholders not only alleviates capital pressure but also drives optimization of their business models. However, capital supplementation is just the foundation; achieving high-quality development ultimately depends on the company's own product capabilities, channel strengths, investment management skills, and risk control levels, rather than relying solely on shareholder support.
Looking ahead, Jiang Han noted that for small and mid-sized insurers, supplementing capital beyond equity injections and bond issuances can begin with adjusting their business mix. By scaling back high capital-consuming operations and optimizing the portfolio, they can reduce capital pressure at the source. Additionally, leveraging regulatory-approved innovative capital instruments—such as subordinated debt and Tier 2 capital bonds—allows these insurers to bolster supplementary capital without altering ownership structures, thereby improving their combined solvency adequacy ratio.
