Wanda-Backed Insurer Skips Bond Call Option in Sign of Cash Woes

Aeon Life Insurance Co., a Chinese insurer backed by Dalian Wanda Group Co., chose not to exercise a call option on a subordinated bond in a move that usually signals an issuer’s liquidity strains or refinancing challenges.

The insurance company decided to skip the March call option on its 2 billion yuan ($278 million) subordinated bond maturing in 2029 that was used to replenish its capital, according to a statement from the company published on the Chinamoney.com website Wednesday.

The coupon on the notes will jump to 7.25% from 6.25%, the filing shows. The decision comes at a time ...