Sustainable debt to make insurance companies supplement core capital new tools shareholders' capital increase capacity, the more enthusiastic issuance, the higher the issuance

15AUG

Our reporter Su Xiangyi Recently, the Central Bank and the CBRC jointly issued the "Notice on the issuance of non -fixed -term capital bonds issued by insurance companies" (hereinafter referred to as the "Notice"), which clarifies the core elements and risks of non -fixed -term capital bond issued by insurance companies. Such as relevant regulations. The "Notice" will be implemented from September 9 this year. No fixed period of capital bonds, also known as "perpetual debt", refers to the non -fixed period issued by insurance companies, containing a reduction or reinking terms, and in the state of continuous operation and bankruptcy and liquidation. Required capital supplementary bonds. Li Wenzhong, deputy director of the Insurance Department of the Capital University of Economic and Trade, told a reporter from the Securities Daily, "The willingness to issue a non -fixed period of capital bonds for the issuance of insurance companies should be relatively strong. Insurance companies that need to increase core capital and insufficient capital increase capabilities in the major shareholders may be more enthusiastic about issuance. The key to whether insurance companies can successfully issue depends on the investment demand in the capital market. " The notice clearly stipulates that the insurance company shall submit an application to the central bank and the CBRC in accordance with the conditions and procedures stipulated in the "Announcement of the China Insurance Supervision and Administration Commission of the People's Bank of China" ([2015] No. 3). Insurance companies issued perpetual debt must meet the following conditions: good corporate governance mechanisms; continuous operation for more than three years; the net assets in the last quarter of the last year and the financial report in the last quarter It is less than 100%; there have been no major violations and violations in the past three years; other conditions required by the Central Bank and the CBRC. In accordance with the above conditions, most insurance companies on the market can issue perpetual debt. Among them, there are few new insurance companies in the past three years, and most of the continuous operation periods of most insurance companies have exceeded three years. As of the end of the second quarter of this year, except for individual insurance companies, most of the net assets of most insurance companies are higher than 10 100 million yuan; In the insurance companies that have disclosed the solvency report in the second quarter of this year, except for the comprehensive solvency adequacy ratio of 1 property insurance company, the other insurance companies exceeded 100%. From the perspective of the industry, the issuance of perpetual debt has unique advantages in supplementary capital for insurance companies. Lu Xiaoquan (pseudonym), a senior expert in the insurance asset management industry, told reporters of the Securities Daily that the insurance industry is currently in the stage of business growth and transformation and development, and the supporting role of capital and solvency has become increasingly important for business development. The source of the capital of insurance companies is mainly shareholders' capital injection, endogenous capital, and issuing capital supplementary bonds, but from the perspective of practical perspective, there are certain regrets in these three types of capital supplements. There are certain requirements for the rate; the process of profit retention channels for capital supplementation is relatively slow, and the business expansion or formation of certain constraints; capital supplementary bonds in addition to the renewal of the debt can only supplement the first -level capital, core capital and core payment capacity. The adequacy ratio cannot be supplemented and enhanced. "Sustainable bonds can supplement core capital and effectively alleviate the problem of tension of some insurance companies' core solvency." Lu Xiaoquan added that as the second -generation second -generation second -generation project continued to advance, insurance companies face different degrees of capital supplementary pressure. Issuing sustainable debt is an important measure for insurance companies to further expand capital supplementary channels and improve the level of core solvency adequacy ratio, which is conducive to enhancing insurance companies' capabilities to prevent and resolve industry risks and serve the real economy. Further enrich financial market products and optimize the financial market system and structure. In addition, the issuance of permanent debt is also conducive to solving the underwriting problems faced by some insurance companies. The relevant person in charge of a re -insurance company's product actuarial department told the Securities Daily that in the first half of this year, many insurance companies' investment end failed to expect, and the solvency of the solvency declined. The flexibility of enterprises to develop business, and individual insurance companies do not even dare to carry out related businesses. Therefore, improving the ability to settle the insurance company has become a top priority. Lower records or re -possibilities are mainly concerned about the issuance qualifications and functions of permanent debt, while bank investors such as banks and other institutional investors pay more attention to the risk of permanent debt. Li Wenzhong predicts that the main scope of investors who have renewed bonds of investment insurance companies are relatively limited, and most of them are bank institutions (including financial subsidiaries) and insurance companies. Because permanent debt contains records or re -transfer clauses, if there is a big problem in the operation of insurance companies, it will bring losses to investors. However, Lu Xiaoquan said that the possibility of downgraded debt renewal or renewal of insurance companies is relatively low. The "Notice" clarifies the trigger events of losing and conversion, including continuous operation trigger events and unable to survive trigger events. Among them, the continuous operation trigger event refers to the core settlement rate of insurance companies below 30%. Judging from the situation at the end of the first quarter of this year, the overall solvency of the insurance industry is relatively high, and the number of insurance companies that conform to the trigger incident is very small. Unable to survive trigger events refer to one of the following situations: First, the CBRC believes that if you do not have a record or conversion, the insurance company will not survive; the second is that the relevant departments determine that if the public sector is not injected or provided with the same validity, Support, insurance companies will not be able to survive. There are currently few insurance companies that meet these two types of situations. In addition, the "Notice" also requires that the insurance group (holding) company shall not issue permanent debt, which is conducive to the effective control of insurance subsidiaries.

Lu Xiaoquan said that the insurance group (holding) company, as an investor of each insurance company, is responsible for ensuring that the capital of various insurance companies is sufficient, which is conducive to protecting the capital security of its subsidiaries.Recommended reading

The global stock index rebounded this week!Northern Fund net buying A shares exceeds 7.6 billion yuan, institution: It is recommended to adhere to the balanced allocation of the three major sectors

This hot city adjusts the policy of "recognizing houses and recognizing loans".

Picture ｜ Bag Picture Network Station Cool Hero Production | Liu Zhizhi

- END -