The solvency ratio of China’s insurance sector remained stable for the second quarter of 2018, according to the market’s top regulator.
Data from the China Banking and Insurance Regulatory Commission (CBIRC) outlined that the average solvency ratio of 176 insurance companies was at 246% by the end of the second quarter, while core assets’ solvency was at 235%, both well above the boom-bust line of 100%, state media arm Xinhua reported.
CBIRC said in a statement that its primary mission is to prevent and dissolve major risks in China’s insurance and banking industries.
The declaration comes after Chinese regulators battled significant risks to its financial system in the past few months, leading to several high profile arrests and the merging of the former banking and insurance regulators into the CBIRC.
It was reported earlier that China’s insurance sector saw premium income dip by 3.33% year-on-year to RMB2.2 trillion (US$320 billion) in the first half of 2018.
As of mid-year, the Chinese insurance industry had combined assets of RMB17.6 trillion (US$2.57 trillion), up 5.35% from the start of the year.
