Chinese non-life insurers to seek capital on slower surplus growth: Fitch

17 June, 2019 12:00 AM printer

BEIJING: Chinese non-life insurers, especially those with small scale operations, volatile underwriting margins and high growth dynamics, are likely to seek fresh capital, Fitch Ratings said in their latest report.

The liberalization of commercial motor insurance premium rates will limit insurers' ability to improve their margins, leading to slower surplus growth, the rating agency noted, reports Xinhua.

It expected insurers to instead turn to fresh capital -- from either equity raising or issuing of capital supplementary bonds -- to strengthen solvency adequacy. By the end of the first quarter, the comprehensive solvency ratios for the entire insurance market and the non-life sector amounted to 245 percent.