Dredge the blood mechanism by CIRC reset insurance and Enterprise subordinated debt to raise the threshold

⊙ Reporter Lu Xiaoping 0 edit Liu Yufeng State Council Legal Office website 18th again disclosure has insurance company secondary regularly debt management approach (sought views draft) under, and last year end announced of sought views draft compared, latest amendment draft on secondary debt of raised threshold for has moderate adjustment, maximum of changes is: latest amendment draft will "by audit of Shang annual late net assets" limit from previously amendment draft of does not below 1 billion yuan cut for does not below 500 million Yuan, on net capital of requirements and again returned to has 2004 years 10th, text level. Industry sources said, this is intended to be suffering from "money hunger disease" insurance "dredging" blood mechanism. Recommended reading insurance weekly: variable amount annuity pilot started Beijing Shanghai five city first wins insurance enterprises violations promotions penalty 500,000 insurance ring "Wang yawei" emerge surface exaggerated income does not to risk silver insurance disputes constantly should first to family "pillar" Shang foot insurance regardless of from lost insurance is zehui Shi Qiming jointly immortal see disk build boutique lecture in insurance industry development quickly, insurance company lack appropriate of then financing channel of background Xia, made debt almost became most main of financing way one. Therefore, the approach widely for comments on the basis of an appropriate modification, is very important for the sustainable development of the insurance company. The so-called subprime refers to insurance companies approved to raise, in the period more than 5 years (5 years), the settlement order in the policy responsibility of the principal and interest and other liabilities, ahead of insurance companies equity capital insurance company debt. Application threshold is the most important elements. And the China insurance regulatory Commission (2004), 10th of the interim measures for the insurance of subordinated term debt management than draft at the end of last year had increased "opened more than 3 years, profit of the previous year" and other restrictive conditions. At the same time, has also increased dramatically on the threshold of the net assets and raise debt scale, require insurance companies audited net assets of not less than RMB 1 billion at the end of the previous year (before the provisions of the $ 500 million); after raising the cumulative outstanding amount of subordinated debt and interest group of not more than insurance companies audited net asset value of 50% at the end of the previous year (former 100%). And clearly, insurance group (or holding) the company shall not raised subordinated debt. Insurance company and its shareholders and other third parties may not provide guarantees of subordinated debt to raise. Obviously, according to the revised version at the end of last year, significant increase in insurance enterprises to raise bar for subordinated debt. However, according to the current realities of insurance industry, the high threshold is obviously not conducive to risk and Enterprise bond, restricted its financing needs, business development will no doubt be affected. Lapse of almost half a year, a revised draft was released yesterday, the latest draft of clear, applications for insurance companies to raise subordinated debt, should meet the following criteria: opening for more than three years; the audited net asset no less than RMB 500 million Yuan at the end of the previous year; after the raise, the cumulative outstanding amount of the subordinated debt and interest group of not more than at the end of the previous year's audited net asset 50%. Obviously, to net capital requirements is to return to the level of 2004. As with the end of last year's draft, the latest draft still subordinated debt to raise funds shall not invest equity, real estate and infrastructure. In addition, the latest draft new article: "insurance company solvency ratios less than 150% or solvency ratios within the next two years is expected to be less than 150% can apply for the collection of subordinated debt". Clearly, the insurance regulatory Commission on the whole very "understand" lack of suitable financing channel situation of insurance companies.