The Chinese insurance regulator has taken over Anbang Insurance Group in the wake of allegations that former chairman and CEO Wu Xiaohui (吴小晖) engaged in “economic crimes.”
According to the official website of the China Insurance Regulatory Commission the agency decided to take over Anbang Insurance for a period of one year on 23 February 2018, on the basis of the group’s “business conduct in breach of laws and regulations that could seriously threaten the company’s repayment capability.”
CIRC said that it had sent work teams to Anbang Insurance starting in June August last year, and that they had uncovered “breaches of relevant laws and regulations,” prompting the regulator to remove Wu Xiaohui from his position and place him under investigation.
CIRC will work with the People’s Bank of China, the China Banking Regulatory Commission, the China Securities Regulatory Commission and the State Administration of Foreign Exchange to establish a team to take over Anbang’s operations, with full authority to exercise the rights of shareholders, directors and supervisors.
According to CIRC the team will “adopt pragmatic and effective measures to maintain the normal operations of the company, ensure that the lawful rights and interests of insurance consumers enjoy full protection, and maintain the lawful rights and interests of all relevant stakeholders.”
CIRC said that the takeover process would involve the active participation of high-quality private capital and major equity adjustments.