Rising impairment losses and unattractive investment returns during the year has led China Life Insurance Co., China's largest insurer, to issue up to 30 billion yuan (US$4.7 billion) in subordinated debt to replenish lost capital.

Beijing-based China Life was approved to issue 10-year and 15-year subordinated debt, to raise a total of not more than 30 billion yuan in the coming six months, said the China Insurance Regulatory Commission in a statement.

China Life's third-quarter net profit fell 45.7% to 3.75 billion yuan, driven by the decline of investment returns and increases in impairment losses caused by fluctuations in capital markets. The company had net profit of 16.72 billion yuan for the nine months ended Sept 30, 2011, down 33% year-on-year (Best's News Service, Oct 28, 2011).

China Life's new chairman, Li Yuan, joined the insurer in May. He had said his main tasks include examining the company's problems and finding relevant solutions to help improve management, as well as adjusting strategic plans for the insurer's overall development needs (Best's News Service, Aug. 24, 2011).

The insurer is listed in Hong Kong, Shanghai and New York. It had a life insurance market share in China of 34.8% as at the end of June.