CBIRC ends takeover of Anbang
The China Banking and Insurance Regulatory Commission (CBIRC) recently issued a public notice, announcing that the newly-established Dajia Insurance Group Co., Ltd. that split from Anbang Insurance Group Co., Ltd. is basically capable of operating as normal, and the CBIRC therefore terminates the takeover of Anbang Group by law.
On February 23, 2018, the regulator issued a public notice deciding to take over Anbang Group for a period of one year in accordance with Article 144 of the Insurance Law, in view of the fact that Anbang Group’s operation had violated the provisions of the Insurance Law and may seriously endanger the company’s solvency.
On February 22, 2019, in accordance with Article 146 of the Insurance Law, the CBIRC decided to extend the period of Anbang Group’s takeover by one year.
Since the takeover, the CBIRC has been promoting risk resolution in an orderly manner and has successfully completed various tasks with the joint efforts and support of relevant parties. By January 2020, the RMB1.5 trillion short-term and medium-term wealth management insurance products issued by Anbang Group before the takeover had been fully paid out, according to a statement.
There have been no missed payments or defaults, and the legitimate rights and interests of insurance consumers and all relevant parties have been effectively protected. The disposal of non-core financial licenses such as Century Securities, Bangyin Financial Lease, Hexie Health Insurance has been completed, and Chengdu Agricultural Commercial Bank has been listed. The CBIRC worked closely with the judicial authorities to recover assets, and minimised the losses caused to the company by the illegal activities of Wu Xiaohui, former chairman of Anbang Group.
In order to effectively resolve the risks of Anbang Group, the CBIRC divested Anbang Group’s assets that do not involve the criminal investigation and litigation, approved the establishment of the Dajia Insurance Group, and accepted the transfer of equity rights in Anbang Life Insurance Co., Ltd., Anbang Annuity Insurance Co., Ltd. and Anbang Asset Management Co., Ltd. in accordance with the law. The CBIRC also established the Dajia Property & Casualty Insurance Co., Ltd. to undertake the insurance business of Anbang Property & Casualty Insurance Co., Ltd.. Anbang Group and Anbang Property & Casualty Insurance will be liquidated and cancelled according to law.
