Core Viewpoint - The article discusses the collaboration between China Ping An and China General Nuclear Power Corporation (CGN) in investing in offshore wind power projects, marking the first direct equity investment by insurance funds in this sector in China, which aligns with national energy security strategies and the characteristics of insurance capital as "patient capital" [2][3][4]. Group 1: Investment Details - On July 1, 2025, China Ping An signed a cooperation agreement with CGN for the Shantou Jiazi and Huizhou Port offshore wind power projects, with an investment of 3.726 billion yuan [2][3]. - The underlying assets consist of two offshore wind power stations with a total installed capacity of 1.9 GW, representing the first million-kilowatt-level offshore wind power projects in the Guangdong-Hong Kong-Macao Greater Bay Area [2][3]. Group 2: Role of Insurance Capital - Insurance capital is seen as a key player in promoting energy transition and enhancing the efficiency of state-owned capital allocation, particularly in the context of the new energy security strategy [2][8]. - The participation of insurance funds in renewable energy projects can help revitalize existing assets, reduce overall liabilities, and optimize resource allocation for state-owned enterprises [8]. Group 3: Market Trends and Challenges - The ownership of renewable energy assets is increasingly concentrated among central and local energy groups, with projections indicating that by the end of 2025, major state-owned enterprises will account for over 50% of the installed capacity in wind and solar energy [7]. - Current constraints for central and local energy groups include high asset-liability ratios and local government debt pressures, which impact their investment capabilities [6]. Group 4: Investment Timing and Strategy - The current environment presents a strategic opportunity for insurance capital to invest in renewable energy assets, particularly as traditional investment returns face challenges due to low interest rates and market volatility [10][11]. - Investing in renewable energy can provide stable cash flows, which are essential for meeting policyholder demands for dividends and claims [11]. Group 5: Professional Capabilities and Recommendations - The article emphasizes the need for insurance companies to develop strong research capabilities in the renewable energy sector to effectively navigate investment opportunities and risks [14][15]. - Collaboration with industry leaders and external managers with relevant experience is recommended for smaller insurance firms to enhance their investment strategies in renewable energy [15][16]. Group 6: Regulatory Environment - Government authorities are supportive of insurance capital entering the renewable energy sector, but there is a call for more robust policies to facilitate this investment [17][18]. - Recent regulatory changes regarding solvency requirements for insurance companies may pose challenges for their participation in equity investments in new sectors [18].