SHANGHAI -- China's insurance industry regulator has ordered Zhengde Life Insurance to stop engaging in new business, saying its solvency ratio -- a measure of its ability to pay policyholders -- was a negative 87.8%.
Beijing-based Zhengde Life had stated its solvency ratio as 182.7% as of March 31 -- well above the mandated 100% minimum.
The China Insurance Regulatory Commission has also accused the company of inflating its capital through property deals and other means.
Founded in 2006, Zhengde Life is a relatively small player in the industry. The company issued a statement saying it would consider all options for retaining policyholders, including a capital increase.
