Dajia Property & Casualty (P&C) Insurance has announced that it plans to increase its registered capital by CNY1.5bn ($215m). Following the increase, Dajia P&C's registered capital will reach CNY5.5bn.
The capital increase will be used to improve the company’s asset structure, maintain solvency adequacy, and accelerate business transformation.
The capital increase will be fully subscribed by the current shareholder, Dajia Insurance Group Co, using its own funds. Dajia Insurance Group will maintain its 100% ownership stake.
The change in registered capital will take effect upon approval by the National Financial Regulatory Administration (NFRA).
Dajia Insurance Group was formed out of one of the largest corporate rescues in China's financial history, after the government's takeover of the financially stricken Anbang Insurance Group in 2018. The group includes Dajia P&C Insurance, Dajia Life Insurance, Dajia Pension Insurance and Dajia Asset Management. The government’s ultimate goal is to privatise the group by finding strategic investors.