Tianan Life Misses Bond Payment, Testing Implicit Guarantees
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File photo of Tianan Life Insurance Co. Ltd.
Tianan Life Insurance Co. Ltd. has failed to repay a 2 billion yuan ($278 million) capital supplementary bond (CSB) that matured this week, adding to signs that long-held assumptions about implicit guarantees for insurers’ bonds are weakening.
The insurer, a former affiliate of the now-dismantled Tomorrow Holding Co. Ltd., said in a Friday statement that it could not repay the principal or interest on the 10-year bond, which matured Monday. Issued in December 2015, the bond carried a coupon of 6.25% for the first five years, rising to 7.25% for the final five.
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- Tianan Life Insurance failed to repay a 2 billion-yuan ($278 million) capital supplementary bond that matured this week.
- Zhong Hui Life, which took over after Tomorrow Holding’s dismantling, is not obliged to cover this debt.
- The incident, following a similar default by Tianan Property Insurance, highlights weakening expectations of implicit guarantees in China’s financial markets.
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Who’s Who
- Tianan Life Insurance Co. Ltd.
- Tianan Life Insurance Co. Ltd. failed to repay a 2 billion-yuan capital supplementary bond that matured this week. The insurer, a former affiliate of Tomorrow Holding Co. Ltd., stated it could not repay the principal or interest due to being under a risk-disposal process and not meeting regulatory conditions. This follows a similar nonpayment by its sister company, Tianan Property Insurance Co. Ltd., and highlights a weakening of implicit guarantees in China's financial markets.
- Tomorrow Holding Co. Ltd.
- Tomorrow Holding Co. Ltd., previously known as Tianan Life Insurance Co. Ltd.'s affiliate, was dismantled. This led to the creation of Zhong Hui Life Insurance Co. Ltd. in June 2023, which took over Tianan Life. The dismantling of Tomorrow Holding is relevant to Tianan Life's inability to repay a 2 billion-yuan capital supplementary bond.
- Zhong Hui Life Insurance Co. Ltd.
- Zhong Hui Life Insurance Co. Ltd. is a state-backed company established in June 2023. It was formed to take over Tianan Life Insurance Co. Ltd. after the dismantling of Tomorrow Holding Co. Ltd. Notably, Zhong Hui Life is not obligated to cover the bond repayment failures of Tianan Life.
- Tianan Property Insurance Co. Ltd.
- Tianan Property Insurance Co. Ltd. is mentioned as a sister company to Tianan Life Insurance Co. Ltd. It failed to repay a 5.3 billion yuan capital supplementary bond that matured in September, preceding Tianan Life's similar non-payment. This indicates a broader issue of weakening implicit guarantees for bonds in China's financial market.
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What Happened When
- December 2015：
- Tianan Life Insurance Co. Ltd. issued a 2 billion-yuan, 10-year capital supplementary bond (CSB).
- June 2023：
- Zhong Hui Life Insurance Co. Ltd. was set up to take over Tianan Life following the dismantling of Tomorrow Holding.
- September 2025：
- Tianan Property Insurance Co. Ltd. failed to repay a 5.3 billion-yuan CSB that matured.
- Friday, 2025：
- Tianan Life Insurance Co. Ltd. announced it could not repay the CSB principal or interest.
- Monday, 2025-12-29：
- Tianan Life Insurance Co. Ltd.'s 2 billion-yuan CSB matured and the company failed to repay the principal or interest.
AI generated, for reference only
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