% property & Casualty Co., China’s biggest non-existence insurer, stated it plans to elevate 7.25 billion yuan ($1.2 billion) in a rights offer in Hong Kong and China to top off capital. The shares dropped.
The insurer will provide 0.nine rights stocks for each 10 stocks held, according to a Hong Kong inventory alternate declaration the day gone by. percent %, primarily based in Beijing, said it'll charge the Hong Kong-traded stocks at HK$7.46 each, a 47 percent discount to the day gone by’s near, and the home shares at 5.92 yuan every.
The proceeds will enhance the insurer’s solvency margin ratio, a gauge of its capacity to settle claims, to more than 200 percent from 181 percent as of June 30, according to credit score Suisse organization AG, giving it more room to extend its business. China’s 3-biggest non-lifestyles insurers’ premium growth slowed to 16 percentage in the third quarter from 17 percent in the 2d sector as vehicle income weakened, Hong Kong-based Bloomberg Intelligence analyst Steven Lam wrote closing month.
“We don’t completely see the want for the rights problem,” credit score Suisse’s Hong Kong-based totally analysts led by way of Arjan Van Veen wrote in a file, bringing up a likely reduction in solvency necessities subsequent year. “but, it does offer % p.c extra flexibility, specially with reference to its reinsurance preparations.”
The analysts cut the agency’s rate target to HK$17.15 from HK$18.00 to allow for the dilution.
car coverage income
% percent’s stocks fell 3.4 percentage, the most in extra than a month, to HK$thirteen.sixty eight in Hong Kong buying and selling as of 10:20 a.m. neighborhood time, trimming this year’s rally to 19 percentage. The benchmark dangle Seng Index dropped zero.four percent.
China’s vehicle income grew on the slowest pace in 19 months in September, in keeping with the China affiliation of car producers, hampering car insurance income, the largest enterprise section for the state’s non-life insurers.
The company plans to promote 379.8 million H shares and 844.6 million home stocks inside the providing, in step with the statement. human beings’s insurance agency (institution) of China Ltd., the figure, will join five billion yuan of inventory, it said in a separate statement.
internet profits at percent % rose 2.1 percent from a yr earlier to 7.79 billion yuan in the first half of this 12 months, the corporation said in August.