China's insurance companies generally met solvency requirements in the second quarter of this year even though over three fifths of them saw a lower ratio quarter over quarter, the latest industry data show.
As at 13 August, a total of 155 insurers have disclosed their solvency reports for the second quarter on the website of the Insurance Association of China.
For life insurers, the average comprehensive solvency ratio stood at 240.9%, while the ratio was 393.75% for property and casualty insurance companies, both well above the required 100%, reports Shine citing the association’s data.
Sino-French Life Insurance, Shin Kong-HNA Life Insurance and Jixiang Life Insurance failed to meet regulatory requirements in the April to June quarter. None of the property and casualty insurance players went insolvent during the reporting period.
More than 60% of the 155 insurance companies saw a quarter-on-quarter drop in their comprehensive solvency adequacy ratio. Industry watchers attribute the decline to business transformation driven by stringent supervision.