Ping An Insurance Group (601318.SH, 2318.HKG), China’s second-largest insurer, is seeking to replenish its capital base by selling RMB26 billion (US$4.1 billion) worth of six-year convertible bonds, Bloomberg reported. Growth has caused “a corresponding increase in pressure to maintain solvency ratio,” the company said in an e-mailed statement. Chinese insurers are required to maintain a solvency ratio of 150% or face penalties including dividend payout restrictions. Ping An’s solvency ratio was 170.7% as of October 31, a figure that could rise to 194.9% if all bonds are converted into shares. The insurer’s share price is down 39% this year, compared with a 22% drop in the benchmark Hang Seng Index. Broader equity market declines have reduced Ping An’s investment income, contributing to a 44% year-on-year drop in its net income in the third quarter.