Core Viewpoint - The issuance of perpetual bonds by insurance companies is increasing as they seek to strengthen their capital base and meet regulatory requirements, particularly in light of the upcoming end of the transition period for the new solvency regulations. Group 1: Bond Issuance Details - On December 18, Great Wall Life successfully issued 1 billion yuan of perpetual bonds with a coupon rate of 2.70% [1] - In December, several insurance companies, including Ping An Life and Dongwu Life, have issued perpetual bonds or capital supplement bonds, totaling 23.5 billion yuan [1] - The issuance of bonds is primarily aimed at enhancing the solvency levels of these companies and supporting their ongoing business development [3] Group 2: Regulatory and Market Context - The acceleration in bond issuance is attributed to the approaching end of the transition period for the "Solvency II" regulations, which has led to a concentrated release of previously accumulated capital needs [4] - The new accounting standards have increased the volatility of solvency ratios, prompting companies to issue bonds to quickly replenish capital and stabilize regulatory metrics [4] Group 3: Strategic Importance of Capital - The issuance of bonds is seen as a way to prepare for the next year's business operations and to reserve capital for long-term growth needs [4] - As the industry shifts towards protection-oriented and long-term savings products, sufficient capital is necessary to support business expansion and strategic investments [5] Group 4: Trends in Perpetual Bonds - Perpetual bonds have emerged as a key tool for insurance companies to supplement their capital, with a total issuance of 514.7 billion yuan by 12 companies since 2025 [6] - The supply of perpetual bonds is concentrated among large and medium-sized insurance institutions, as they meet the higher issuance criteria compared to smaller firms [7] Group 5: Long-term Capital Strategies - While bond issuance provides short-term capital relief, the long-term solution lies in enhancing the internal capital generation capabilities of insurance companies [8] - Companies are encouraged to focus on high-quality development, optimize their business structures, and improve operational efficiency to achieve sustainable growth [8][9]