Chinese State-controlled insurer PICC Property and Casualty Co Ltd (PICC P&C) is raising 5.76 billion yuan ($938 million) to bolster capital, expecting strong growth and amid signs that profitability of Chinese insurers are coming under pressure.

China's property and casualty insurance market is expanding between 10 to 15 percent annually, making it the fastest growing in the world. That growth also makes it imperative for insurers to maintain adequate capital buffers as required by the regulator.

"In anticipation of premium growth, PICC P&C wants to issue new shares to shore up its balance sheet," Sally Yim, Moody's vice president said.

PICC P&C, which has 34.9 percent market share of China's property and casualty insurance market by premium, said late Monday it plans a rights issue shares in Shanghai and Hong Kong.

The People's Insurance Company (Group) of China Ltd, which owns 69 percent of PICC P&C, and American International Group Inc, which owns 9.9 percent stake in PICC P&C, have agreed to subscribe to the rights offer and maintain their share holdings in the insurer.