China Pacific Insurance: Solvency Update, Subsidiaries Face Fines

China Pacific Life Insurance Co., Ltd. reported a core solvency margin of CNY44.02607bn with a ratio of 124% (down 12pt from Q2 2025) and a comprehensive solvency margin of CNY178.28705bn with a ratio of 197% (down 18pt). The decrease was primarily due to a CNY4.43198bn drop in core capital from market movement and changes in insurance contract liabilities, despite a CNY313.80mn increase in supplement capital. Its minimum capital rose by 7.8% to CNY183.98077bn due to increased life and market risks.

In contrast, China Pacific Property Insurance Co., Ltd. saw improved solvency, with comprehensive and core solvency margin ratios at 242.1% and 198.9%, respectively, up 1.5pt and 3.0pt from the previous quarter. This was driven by a CNY2.15bn increase in actual capital and a CNY700mn rise in minimum capital. Both subsidiaries maintained liquidity coverage ratios above regulatory minimums.

However, regulatory scrutiny led to penalties. China Pacific Life’s headquarters faced a CNY3.53mn fine for violations including unapproved terms and inaccurate data, while its deputy general manager received a CNY50,000 fine for false data. China Pacific Property’s branch offices received 18 administrative penalties totaling CNY10.588mn in fines and CNY2.001mn in individual fines.