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Finance

China's Zhengde Life hit with suspension

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.

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