Core Viewpoint - Insurance companies are increasingly opting for capital reserve conversion to registered capital as a means of capital increase, amidst a challenging environment characterized by "capital shortages" and difficulties in equity financing [1][5]. Group 1: Capital Increase Methods - Jintai Insurance plans to convert part of its capital reserve formed from premium stock issuance into registered capital, increasing its registered capital from 2.379 billion to 3.188 billion yuan, with a total of 809 million shares to be converted [3]. - Dinghe Property Insurance has announced a similar move, increasing its registered capital from 4.643 billion to 6 billion yuan, totaling 1.357 billion yuan in capital increase [3]. - The method of capital reserve conversion differs from traditional equity financing, which typically involves new shareholder investments or additional investments from existing shareholders, leading to new capital inflows and potential changes in shareholder structure [4]. Group 2: Reasons for Choosing Capital Reserve Conversion - The capital reserve conversion method is simpler and quicker compared to traditional financing, as it does not require external fundraising [5]. - This approach helps enhance the solvency ratio and risk resistance capabilities of insurance companies, meeting regulatory requirements in a competitive and strictly regulated environment [5]. - It also improves the company's brand image and market recognition, signaling enhanced capital strength to the outside world, which can aid in business expansion and increase customer trust [5]. Group 3: Market Environment and Challenges - The current complex market environment has affected investor confidence in the insurance industry, making it difficult to attract new shareholders [6]. - Existing shareholders may face challenges in increasing their investments due to personal financial situations, making capital reserve conversion a viable alternative [6]. - However, this method tests the "self-sustaining" capabilities of insurance companies, as capital reserves are crucial equity reserves, necessitating that companies have sufficient internal resources [6].