The China Banking and Insurance Regulatory Commission has announced the approval of a massive capital injection for Anbang Insurance Group following the company’s government seizure in February.
CBIRC said in an official statement that “in order to ensure the ample repayment capability of Anbang Insurance Group, maintain the company’s stable operations and pragmatically protect the interests of insurance applicants, the Anbang Insurance Group will receive an injection of capital from the insurance welfare fund at the same time that CIRC rescinds Anbang Insurance Group’s relevant equity licenses.”
“Following the capital injection Anbang Insurance Group’s registered capital will remain unchanged at 61.9 billion yuan.”
According to Reuters the capital injection for Anbang will amount to around 60.8 billion yuan (approx. $9.67 billion).
The move comes after Beijing placed Anbang’s chairman under investigation and took control of the company in February, as part of a broader campaign against systemic financial risk and efforts to curb recklessly acquisitive conglomerates.
“CBIRC discovered that some shareholders in Anbang Insurance Group made capital contributions using funds that weren’t their own or drafted and provided counterfeit materials during preparatory applications and capital increase applications,” said the regulator in its official statement.
“In order to further strengthen insurance regulation, effectively prevent financial risk, and firmly strike against illicit and illegal insurance company equity conduct, CBIRC has lawfully rescinded the relevant equity and registered capital amendment licenses of Anbang Insurance Group.”