Changsheng Life Insurance Co., Ltd. has launched a project to introduce strategic investors through a capital increase and share expansion on the Beijing Equity Exchange. The information disclosure period runs from June 1 to June 20.
The current announcement does not specify the purpose, targeted amount, or pricing for the capital raise. When contacted, a company representative stated that the primary goals are to replenish capital and support business development, though the specific funding amount remains undetermined.
Established in 2003 as a Sino-Japanese joint venture life insurer, the company was originally known as Guandian Nissay Life Insurance. In 2009, China Great Wall Asset Management Co., Ltd. acquired the stake held by Shanghai Guandian (Group) Co., Ltd., injected additional capital, and the firm was subsequently renamed Changsheng Life.
Following these capital and equity adjustments, Changsheng Life's current shareholders are China Great Wall Asset Management (51%), Nippon Life Insurance Company (30%), and Great Wall Guofu Real Estate Co., Ltd. (19%).
Despite having these strong shareholders, the company has struggled to achieve consistent profitability. Financial data from 2013 to 2025 shows the insurer was profitable only in 2016 and 2021, with significant losses in other years.
Persistent investment setbacks have contributed to these long-term losses. The company reported major investment losses in its 2024 fourth-quarter solvency report. In 2025, it again faced substantial investment impairments, which negatively impacted its solvency ratios.
These factors caused the company's core and comprehensive solvency adequacy ratios to fall to 45.4% and 55.5%, respectively, by the end of the first quarter of 2026. The company attributes part of the solvency pressure to the need for increased provisions due to declining interest rates.
To address this, Changsheng Life has taken measures including allocating long-term interest-rate bonds and encouraging sales of new business to increase the proportion of protection-type policies. However, optimizing these areas alone is unlikely to fully resolve the solvency pressure in the short term.
The first-quarter 2026 solvency report shows a net loss of 33.62 million yuan and a negative net asset value of 413 million yuan.
Alongside business optimization, the company is accelerating capital replenishment efforts. Management has stated that shareholders attach great importance to the solvency issue and are advancing related work. The company is also preparing in areas like business restructuring and talent development to pave the way for a turnaround once capital is in place.
The newly announced project on the equity exchange sets clear eligibility criteria for prospective strategic investors, requiring them to be legally established entities with sound financials and good credit standing.
Notably, the listing typically discloses core operational metrics like premium income and solvency ratios, but this announcement omits such details. It also does not specify the fundraising scale or share expansion ratio, only indicating that the number of interested partners is not limited and that reference pricing is subject to negotiation.
The company representative reiterated that the raised funds are intended to replenish capital and support business development, though the specific amount is still unknown.
Whether Changsheng Life can successfully attract strategic investors will depend on the seller's control over valuation and partnership terms, as well as finding investors aligned with the long-term operational nature of the insurance industry. The final outcome remains to be seen.
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