Dajia Property & Casualty Insurance plans to increase its capital by 1.5 billion yuan, with the major shareholder fully subscribing to strengthen its transformation.

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After completing the phased cleanup of historical burdens, Dajia Property & Casualty Insurance has launched a new round of capital strengthening.

On January 6, Dajia Property & Casualty Insurance revealed plans to increase its capital by 1.5 billion yuan, to be subscribed by its sole shareholder, Dajia Insurance, using its own funds. Once the capital increase is approved by regulators, its registered capital will rise from 4 billion yuan to 5.5 billion yuan, an increase of 37.5%.

This injection is not only the first capital expansion since the founding of Dajia Property & Casualty Insurance, but is also regarded as a clear endorsement by the group for the transformation path of its P&C insurance segment.

From the financial data, Dajia Property & Casualty Insurance doesn’t lack money.

By the end of the third quarter of 2025, its comprehensive solvency adequacy ratio was 205.34%, far above the regulatory red line. Choosing to increase capital at this point may be intended to optimize asset quality.

Previously, investment properties and intangible assets accounted for a relatively high proportion of Dajia Property & Casualty Insurance’s asset structure. While these assets contribute to valuation, their liquidity is weak;

The entry of 1.5 billion yuan in paid-in capital essentially detoxifies the balance sheet, revitalizing existing space and providing ammunition to allocate more highly liquid and high-yield financial assets.

Alongside improving capital, Dajia Property & Casualty Insurance’s operating performance is gradually emerging from the shadows.

In 2024, the company achieved a net profit of 25 million yuan, successfully turning losses into gains. In the first three quarters of 2025, this number further increased to 76 million yuan.

The underlying driver behind the profit turnaround may stem from cost reduction and efficiency improvements in underwriting.

Data shows its comprehensive cost ratio has been compressed from 105.04% in 2023 to 100.79% in the first three quarters of 2025.

With stricter cost controls in auto insurance and intensifying competition in non-auto insurance, achieving a near 5-point reduction in less than two years highlights the company’s achievements in refined management.

The transformation of business structure has quietly begun.

In the first three quarters of 2025, Dajia Property & Casualty Insurance’s insurance business income was 8.095 billion yuan, a year-on-year increase of 16.6%. The proportion of auto insurance premium signed dropped to 62.1%, a decrease of 6.3 percentage points from the same period last year;

Replacing it is the rapid rise of non-auto businesses such as accident & health insurance and agricultural insurance.

This structural shift reflects the company’s efforts to break from its path dependence on the scale of auto insurance and instead seek new growth engines with higher underwriting profit margins.

For Dajia Property & Casualty Insurance, which is in its “transformation results phase,” the 1.5 billion yuan capital increase is more like a proactive defense for business expansion: enhanced capital strength can hedge against the capital consumption of fast-growing non-auto insurance, while also boosting risk resilience in investments.

Upon regulatory approval, Dajia Property & Casualty Insurance will enter the next phase with 5.5 billion yuan in capital.

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