PICC Property and Casualty Company (PICC), China’s largest non-life insurer, reported an increase in profits to 1.78 billion yuan (US$260.8 million) as a result of a surge in China’s stock market lifting the value of their investments and growth in insurance premiums received. PICC is exploring a number of ways to improve its solvency ratio, which currently sits at 111% having dropped 34% last year. China’s insurance regulator, the Chinese Insurance Regulatory Commission, can order insurers with a solvency ratio between 100% and 150% to come up with plans to raise capital. Those insurers with a solvency ratio below 100% are subject to various business restrictions, investment curbs and suspension of dividends. As a result, PICC is seeking to sell more subordinated bonds this year following the success of raising capital by selling such bonds in 2009.

Prudential Plc had its Hong Kong share offering plan reviewed by stock exchange officials on 21 April 2010. Prudential Plc does not plan to sell new shares as part of the listing, however, the process is unique and potentially complicated. Prudential Plc’s listing is key to its US$21 billion rights offering, a share sale that is essential for it to pay for its acquisition of AIA. The Hong Kong Economic Times reported that Prudential Plc may list its shares in Hong Kong in early May.