December 14, 2008

Foreign life insurance companies set off the principal of the new wave of small capital increase marginally

Last week, following the Sino-British Life and AXA Life to increase capital, yesterday, the China Insurance Regulatory Commission also approved the Pacific-Aetna Life Insurance, Prudential Life Insurance, Sun Life Everbright Life Insurance, three foreign insurance companies to increase capital of the application.

Wang Xiaogang researcher at the Oriental Securities, said foreign companies on the Bank of security to rely on a strong business, the capital of consumption faster. At the same time, the China Insurance Regulatory Commission has also raised the insurance solvency ratio requirements. So, with the business of expanding insurance capital into a period of time in the future industry trends.

From the new principal of the increase in the rate can not be too much. If the Pacific-Aetna Life Insurance 700,000,000 yuan from the capital to 800,000,000 yuan; from the Prudential Life Insurance 1,820,000,000 yuan for the change 1,980,000,000 yuan; Sun Life Everbright 900,000,000 yuan from 1.2 billion for the changes. Prior to this, AXA Life's capital increase is only 2 billion, the Sino-British life insurance increased by 2.3598 million.

Said Wang Xiaogang, a small increase in the capital, for four reasons: First, some insurance companies are not solvency standards is not very serious, and more or less the same proportion of the China Insurance Regulatory Commission requirements; Second, investors do not rule out the pressure of capital; Third The beginning of next year's silver in the insurance business both subjective and objective trend of contraction, not too much pressure on the capital; Fourth, investors are also feeling the capital market uncertainty, the situation may change gradually increase their equity.

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