Capital replenishment rate of insurance companies

Bank companies issue bonds mainly to replenish capital. For example, due to the 7.5 trillion credit granted last year, the bank's capital adequacy ratio is less than 8%, and the core capital ratio is supplemented when issuing bonds. Generally speaking, the international proportion is above 4%. Capital adequacy ratio = own capital/total assets =8%, and more loans will inevitably mean more deposits, so the total assets (liabilities+owners' equity) of banks will increase.

Insurance companies issue bonds to increase the ratio of compensation to capital, which is similar to the reserve ratio of banks (insurance is not familiar ~ ~).

It depends on what kind of bonds are used to adjust the capital structure and implement the future strategy for a long time. Adjust funds in the short term to solve the problem of tight funds.

Further reading: How to buy insurance, which is good, and teach you how to avoid these "pits" of insurance.