Zhong Guo Zheng Quan Bao·2025-11-20 20:09Core Viewpoint - Insurance companies are accelerating capital replenishment as the transition period for the second phase of the solvency regulation approaches its end, with 19 companies issuing capital supplementary bonds or perpetual bonds totaling over 70 billion yuan this year, with nearly 70% being perpetual bonds [1][2] Group 1: Capital Supplementation Trends - As of November 20, 2023, 19 insurance companies have issued capital supplementary bonds or perpetual bonds, with a total issuance scale of 741.7 billion yuan, slightly down from the previous year but still at a high level [1][2] - Half of the issuing companies opted for perpetual bonds, with a total issuance close to 500 billion yuan, representing nearly 70% of the total [2] - Major issuers of perpetual bonds include Ping An Life (13 billion yuan), Taiping Life (9 billion yuan), ICBC-AXA Life (7 billion yuan), Taikang Life (6 billion yuan), and Sunshine Life (5 billion yuan) [2] Group 2: Cost of Issuance and Debt Management - The average coupon rate for the bonds issued this year is below 3%, with the highest at 2.8% and the lowest at 2.15% [2][3] - Some insurance companies are redeeming old bonds while issuing new ones to lower financing costs, as seen with China Merchants Jinhe Life redeeming an 8 billion yuan bond with a higher interest rate [3] Group 3: Regulatory Context and Future Outlook - The issuance of bonds is primarily driven by the need to enhance solvency and meet stricter regulatory requirements under the second phase of solvency regulations, which has seen a decline in solvency ratios [3] - The transition period for these regulations has been extended to the end of 2025, prompting insurance companies to expedite capital replenishment efforts [3] - Industry experts suggest that insurance companies should diversify their capital replenishment channels and improve their profitability and capital management efficiency for sustainable development [3]