China Life Insurance Co.'s (02628.HK)planned CNY30 billion debt issue is only the "start" of its capital raising, Vice President Liu Jiade said Wednesday.

"In the future we will determine the method for financing based on our own situation and the level of repayments," he added.

Liu was speaking at a news briefing one day after China Life reported a larger-than-expected 28% drop in first-half net profit.

The profit decline dragged down the insurer's solvency ratio--which measures its ability to repay policies--to 164% at the end of the first half from 212% at the end of 2010. Chinese insurers are required to keep the ratio above 150%.

The planned debt issue will raise the company's solvency ratio by at least 40 percentage points, and the solvency ratio may further recover if market conditions improve in the second half, Liu said.

Source:foxbusiness