Part of the insurance enterprises is an urgent need to improve the solvency of subordinated debt financing bucket

As at May this year, China insurance regulatory Commission approved a total of subordinated debt issued 8.45 billion. May 30 to June 2, China insurance regulatory Commission also approved the letter tairenshou, Jin Cheng Renshou, huaan property insurance changes the registered capital. First announced by the insurance industry in China after the 2010 annual report in February alone, insurance corporate finance flows have started with one climax following another. Although insurance reducing subordinated debt issuance threshold, but CITIC building investment and securities insurance analyst Wei Tao believes that subordinated debt is in listing and financing channels of bad cases of frustration move. Issuance of subordinated debt can only improve in the short term solvency, and could not be settled once and for all future 3-5 year solvency problems. This is because the size of the issuance of subordinated debt subject to policy restrictions greatly, but also from the perspective of the existing market environment, subordinated debt issuance costs on the rise. Recommended reading insurance weekly: increased warehouse investment over 30,000,000,004 months insurance funded deposits moved near billions of cast even insurance May then case Waterloo income differentiation country life cast even insurance success escape top 5 name foreign executives joined China peace Qian May Beijing insurance intermediary was penalty million history with shares mass insurance holding 20% Qiming: shocks city in the how mining Daniel unit part insurance enterprises pay ability tight insurance has been keep fast of development momentum, near five years insurance business keep has annual 24.2% of development speed, 2010 China premium income reached 1.47 trillion yuan, insurance total assets reached 5 trillion yuan. In 2011, under the influence of various factors, although the increase in China's insurance industry have decreased slightly, but premium is the total size to maintain sustainable growth. With the continuous expansion of scale, solvency of insurance companies in need of additional capital to make match the scale and its operation. The daily news reporter learned that, some rapid development of insurance companies, solvency ratios have begun drops to about 150%, even less than 150%, additional capital required to increase the solvency ratios. If the Chinese people, the health insurance company 2010 annual report shows that at the end of 2010, the company's solvency ratio of 115% in 2009, representing a decline in the late 96%. Company solvency ratio decreases are subject to rapid development of business and capital market fluctuations. In addition, public insurance company 2010 annual report shows, the company's 2010 solvency ratios for the 150.84%, than the solvency ratios had fallen in early 12.24%. CITIC building investment and securities analyst Wei Tao think of insurance, insurance companies are heavily indebted enterprises, debt rate is generally over 85%~90%, regulatory requirements so that insurance companies on capital consumption rate higher. Due to insurance requirements of solvency sufficient rate to maintain the 150% above, therefore minimum capital growth 1%, the actual capital to 50% in order to continue maintaining 150% over the minimum capital adequacy or solvency ratios are declining. After the decline in the solvency of insurance companies, issuing bonds, capital increase and share expansion, seeking listing, become important channel of supplementary capital insurance company. Bucket subordinated debt financing in 2011, the problem of the insufficient solvency of the insurance industry tested a number of risks and enterprise, if 2010 is the problem of small and medium-sized companies, 2011 the solvency of the pressure on large companies. Public information displays, Chinese insurance solvency casualty only 115%, 150% cordon has dropped below. Turbo in China (601,601, unit) equity injection by the Pacific property insurance has already been completed in the first quarter. End of 2010, ping an property insurance and life insurance's solvency is lingering near the 180% and ping an property insurance premiums is far faster than the growth rate of the first half of Turbo, to calculation of ping an property insurance solvency also close to the line. CITIC building investment and securities insurance analyst Wei Tao believes that April 2011 years ago China insurance regulatory Commission approved 24 insurance companies, completed a total of 23.274 billion injection, but there is still lack of 4 insurance companies solvency, and another 6 companies hovering in the vicinity of 100%. Indeed, the 2011 in addition to new China life insurance, other companies listing in sight, so completed supplementary capital through stock market in the short term. Before that, Xinhua life insurance 2010 completed 14 billion of financing, restore solvency to the 146%, but still does not meet the 150% requirements. For other listed in sight of an insurance company, bond, equity became important way to ease the insufficient solvency. Public information display, in mid-May, Thai life insurance regulatory Commission agreed letter raises 10-year redeemable subordinated term debt of $ 450 million, May 30, Thai life insurance regulatory Commission agreed letter change registered capital to $ 1.49 billion. Apart from tairenshou, China insurance regulatory Commission and the end of May-intensive approved the equity, raising subordinated debt of a number of insurance companies. Including Jin Cheng Renshou, huaan property insurance, property insurance, China life insurance company of the Chinese people. The industry believes that, from the perspective of finance, shareholders equity injection is an expedient measure, and insurance companies of the capital constraints, the most fundamental way is to open up the listing and financing channel. On the consumption of capital, insurance companies and banks have a lot of similarities, but Bank funding channels are relatively mature, has a strength of city commercial banks listed on the active planning, and insurance companies listed much. In May, the subordinated term debt management approach of China insurance regulatory Commission published the insurance companies (draft for soliciting opinions), draft debt thresholds to reduce net worth threshold lowered from the original $ 1 billion to $ 500 million. The industry believes that new provisions that benefit small and medium-sized companies, for larger companies, issuing size actually is restricted. An insurance analyst said with the insurance company scale expanding, shareholders do not have enough money to inject. Opening up the insurance company listing and financing channel, is the medicine for symptoms. Before that, for small and medium companies, additional branch offices and sales channels, policy dividends on capital consumption is very large, therefore requires a lot of investment in the early, and some insurance enterprises shareholders ' capital increase the will is not strong, then only through issuing bonds to make up for a capital. "Manuscript statement" without the daily economic news authorized use, offenders. If you want to reprint or learn more about the highlights, log's official website: