Shareholders from Fujian and Taiwan inject 1 billion yuan into Fujian Junlong Life Insurance, and more than 10 small and medium-sized insurance enterprises have completed capital increase within this year.
Two years later, Junlong Life, a Fujian-Taiwan joint venture insurance company, has once again launched a large-scale capital "replenishment".
According to a recent announcement from Junlong Life, the shareholders' meeting has reviewed and approved a capital increase plan of 1 billion yuan, under which the company's registered capital is planned to increase from 2.6 billion yuan to 3.6 billion yuan. The Chinese shareholder Xiamen C&D Group and the foreign shareholder Taiwan Life will each contribute 500 million yuan, and the 50-50 shareholding structure will remain unchanged after the capital increase. The plan is still pending approval from the financial regulatory authorities before it can be implemented.
Junlong Life told Time Finance that the planned 1 billion yuan capital increase fully reflects the firm confidence and strategic support of cross-strait shareholders in the long-term development prospects of Junlong Life, further consolidates the company's capital strength, and provides solid capital guarantee for the steady development of the company's business and product innovation.
Looking at the entire insurance industry, the "capital replenishment" moves of small and medium-sized institutions have emerged intensively recently. According to incomplete statistics from Time Finance, since the beginning of this year, more than 10 small and medium-sized insurance enterprises have been accelerating their capital replenishment. Among them, HSBC Life has increased its capital twice within the year, the nearly 1 billion yuan capital increase of Huatai Life has been implemented, many institutions including Strait Golden Bridge Property & Casualty Insurance and Lujiazui Cathay Life have successively launched capital increase plans, and the capital increase plans of Bohai Property & Casualty Insurance, ZhongAn Online, China United Life and other insurance enterprises have also obtained regulatory approval.
Industry insiders believe that this round of intensive capital increase in the industry is fundamentally driven by the impact of the C-ROSS Phase II and the new insurance contract standards in 2026, superimposed on the low interest rate market environment. The pressure on insurance companies to accrue reserves has risen and core capital continues to be consumed. At the same time, business expansion further squeezes capital space, and most small and medium-sized insurance enterprises take the initiative to replenish capital in advance to consolidate the foundation of solvency.
Junlong Life Launches Another Large-scale Capital Increase
According to the announcement, the planned 1 billion yuan capital increase of Junlong Life follows the previous model of shareholders contributing in equal proportion. No new shareholders will be introduced in this capital increase, and the shareholding structure of the company will remain stable after the capital increase is completed.
As the first insurance legal person institution with its headquarters settled in Fujian, Junlong Life was established in Xiamen in December 2008 as a joint venture between Xiamen C&D Group and Taiwan Life, with an initial registered capital of 240 million yuan, and the two major shareholders each hold 50% of the shares. Since its establishment, the company has gone through multiple rounds of capital increase in equal proportion by shareholders, and the pace of capital replenishment has accelerated significantly after 2020.
In 2020, 2021, 2023 and 2024, Junlong Life completed capital increases of 100 million yuan, 700 million yuan, 600 million yuan and 500 million yuan respectively. After the capital increase in 2024 was implemented, the registered capital rose to 2.6 billion yuan.
In terms of operation, the premium scale of Junlong Life has grown steadily in recent years, but stable profitability has not yet been achieved. Data shows that from 2022 to 2024, the company realized insurance business income of 1.411 billion yuan, 2.199 billion yuan and 2.563 billion yuan respectively; the net profit in the same period was -175 million yuan, -173 million yuan and 46 million yuan respectively. In 2025 and the first half of 2026, the company's premium income continued to grow, realizing insurance business income of 2.638 billion yuan and 1.035 billion yuan respectively, and net profit of 382 million yuan and 89 million yuan respectively.
The expansion of business continues to consume net assets, superimposed on the pressure of reserve accrual under the low interest rate environment of the industry, which has continuously tested the solvency of Junlong Life.
The latest solvency report shows that by the end of the second quarter of 2026, the comprehensive solvency adequacy ratio of Junlong Life dropped from 162.69% to 159.29%, and the core solvency adequacy ratio dropped from 116.01% to 112.21%. Junlong Life explained in the solvency report that in the second quarter, the increase in reserves caused by the decline of the 750-day risk-free interest rate, superimposed on the minimum capital occupation of insurance business expansion, finally led to a slight decline in the overall solvency adequacy ratio.
"The company supplements core capital through shareholder capital increase to ensure financial stability and effectively improve the solvency adequacy ratio; at the same time, the capital increase will provide solid capital support for the company's business development, help the company steadily expand its business scale, and sufficient capital injection will further consolidate the foundation of business development and continuously improve the profitability level." Junlong Life told Time Finance.
A non-bank analyst in the insurance industry analyzed to Time Finance that the cash capital increase by shareholders increases the core capital, which plays a more fundamental role in the regulatory rating, new institutions and expansion of business categories of insurance enterprises, but it is highly dependent on the shareholders' willingness to contribute and capital strength. In reality, many small and medium-sized insurance enterprises are faced with the dilemma of weak shareholders' willingness to contribute, some capital increase plans are suspended or delayed, and it is not easy to implement capital replenishment. It is not common among joint venture insurance enterprises that Chinese and foreign shareholders can continue to invest real money in equal proportion like Junlong Life.
Small and Medium-sized Insurance Enterprises Intensively Carry out Capital Replenishment
Since 2026, capital increase moves in the insurance industry have been continuously implemented. Many insurance enterprises supplement their core capital through shareholder contribution, targeted share expansion and other methods to consolidate solvency and enhance risk resistance capabilities. In terms of progress, some capital increase matters have been approved by the financial regulatory authorities and the registered capital change has been completed, and a number of other capital increase plans have been reviewed and approved by shareholders or general meetings of shareholders, waiting for regulatory approval.
In January this year, the capital increase plans of insurance enterprises were intensively disclosed to the public. Strait Golden Bridge Property & Casualty Insurance launched a capital increase and equity adjustment plan, in which 4 shareholders planned to contribute a total of 1 billion yuan, and the registered capital will be increased from 1.5 billion yuan to 2.5 billion yuan. This capital increase is simultaneously matched with equity transfer, and the shareholder Xiamen Xiangyu Group plans to transfer all its shares to Fujian Investment and Development Group Co., Ltd. Up to now, no public information shows that the plan has obtained regulatory approval.
Affected by business expansion and investment activities, HSBC Life faced downward pressure on its solvency adequacy ratio in the first quarter of 2026. Also in January, HSBC Life launched a plan that its sole shareholder HSBC Insurance (Asia) would increase its capital by 556 million yuan, which was approved by the Shanghai Financial Regulatory Bureau in June, and the company's registered capital increased to 3.232 billion yuan. After the capital was in place, by the end of the second quarter of 2026, the core and comprehensive solvency adequacy ratios of HSBC Life rose to 147.76% and 199.28% respectively. In August, HSBC Life once again launched the second capital increase plan within the year, with shareholders planning to contribute 472 million yuan, and the registered capital will be further increased to 3.704 billion yuan. The plan is pending regulatory approval.
In April, the two major shareholders of China United Life, China Insurance Group and China United Property & Casualty Insurance, planned to contribute a total of 300 million yuan to it. After the capital increase, the shareholding ratio of the two shareholders remained unchanged, and the company's registered capital will be increased from 4.1 billion yuan to 4.4 billion yuan. The capital increase plan was approved by the Beijing Financial Regulatory Bureau at the end of June.
In May, the 93 million yuan capital increase plan of Bohai Property & Casualty Insurance was approved; in the same period, Huatai Life disclosed a targeted capital increase plan, in which the shareholder Huatai Insurance Group contributed 970 million yuan in full, pushing the registered capital to increase from 4.3125 billion yuan to 5.2825 billion yuan. The plan was officially approved by the Beijing Financial Regulatory Bureau on September 4.
June became a concentrated window for the implementation of capital increase of insurance enterprises. Among them, the 215 million yuan capital increase of ZhongAn Online Property & Casualty Insurance was approved by the regulatory authorities, and the registered capital increased from 1.4698 billion yuan to 1.6848 billion yuan. At the same time, capital increase plans continued to emerge. The two major shareholders of Lujiazui Cathay Life, a cross-strait joint venture life insurance company, planned to contribute a total of 2 billion yuan, and the registered capital increased from 3 billion yuan to 5 billion yuan. The capital increase plan is still pending approval by the regulatory authorities; Changsheng Life, which is under solvency pressure, simultaneously listed a capital increase and share expansion project on the Beijing Stock Exchange to introduce new strategic investors.
In August, Changjiang Property & Casualty Insurance announced that it planned to introduce Hubei Water Resources and Hydropower Planning, Survey and Design Institute as a new shareholder, issue 249 million new shares, raise about 250 million yuan, and increase the registered capital from 2.797 billion yuan to 3.046 billion yuan. The capital increase plan is still pending regulatory approval. By the end of the second quarter of 2026, although the solvency of Changjiang Property & Casualty Insurance was still at a high level, the adequacy ratio declined for two consecutive quarters, the comprehensive risk rating was downgraded to Grade B, and the underwriting side continued to lose money. The company clearly promoted capital increase and share expansion in the second quarter solvency report.
Entering September, in addition to Junlong Life, the shareholders' meeting of Guofu Life also passed a capital increase plan, which plans to issue 450 million new shares at a unit price of 1.2 yuan, raising 540 million yuan, and the registered capital will be increased from 2.047 billion yuan to 2.497 billion yuan. This capital increase all comes from the old shareholders Guangzhou Vipshop and Guangtou Financial Holding, no new shareholders will be introduced, and the plan is waiting for the approval of the regulatory authorities.
This round of concentrated capital increase launched by small and medium-sized insurance enterprises is not an isolated phenomenon, but the result of the superposition of multiple factors including system switching, market environment and industry business transformation. Industry analysis points out that the implementation of C-ROSS Phase II and the new accounting standards for insurance are the core driving factors for this round of intensive capital increase of small and medium-sized insurance enterprises.
The new regulation of C-ROSS Phase II, namely the "Regulations on Solvency Supervision of Insurance Companies (II)", was officially implemented in the first quarter of 2022. Since the full implementation of the new regulation, the capital measurement standards of the insurance industry have been greatly tightened, and the risk capital occupation of equity and long-term equity investments has increased significantly.
At the end of 2025, the transition period of C-ROSS Phase II officially ended, and 2026 is the first full year of the full implementation of the new regulation. The new regulatory rules raise the risk factors of some assets and reduce the proportion of future policy surpluses included in core capital, which directly consumes the core capital of insurance enterprises. Superimposed on non-listed insurance enterprises promoting the switching of IFRS 17 new insurance contract standards, under the low interest rate market environment, the pressure of reserve accrual has risen, further compressing the net assets and solvency buffer space of insurance enterprises. Many small and medium-sized insurance enterprises have chosen to replenish capital in advance to prevent the downward risk of indicators brought by subsequent business expansion, even if they have not touched the regulatory warning line.
However, the above non-bank analyst in the insurance industry told Time Finance that capital increase is only external capital transfusion, which is a means to improve capital indicators, but cannot fundamentally solve the operational problems of small and medium-sized insurance enterprises. If their own business model is not iterated and the endogenous "hematopoietic" capacity is insufficient, even if shareholders continue to increase capital, capital consumption will continue to occur. With the intensification of industry differentiation, the gap in capital acquisition capacity will further widen the development gap between small and medium-sized insurance enterprises.
This article is from the WeChat Official Account "Time Finance APP" (ID: tf-app), author: He Xiulan, editor: Wen Siting, published with authorization from 36Kr.