Best’s Special Report: Declining Investment Yields Pose Challenges to Meet Cost of Capital for China Insurers

HONG KONG--(BUSINESS WIRE)-- #insurance--Chinese insurers have been raising funds from the domestic debt capital market in the form of capital supplementary bonds (CSBs) in recent years, highlighted by a 240% increase in issuances in 2023. However, according to a new AM Best report, as CSBs are not recognised as core capital under the C-ROSS Phase II solvency regime, the core solvency ratio, particularly among China’s life insurers, has experienced material downward pressure. The Best’s Special Report, “Dec