Regulatory crackdown continues for Chinese insurers
The China Insurance Regulatory Commission published a 12 February letter to the management of Anbang Insurance Group Co, saying duties of the board and management will now be overseen — and subject to consent — by a working group of regulators from various agencies for one year.
In June 2017, Chinese officials arrested Anbang’s former chairman and general manager Wu Xiaohui on suspicion of economic crimes. Wu has been charged with fundraising fraud and embezzlement.
CIRC has yet to decide how or whether to dispose of the assets in Anbang’s headline-grabbing portfolio. Anbang paid US$1.95 billion for the 1,413-room Waldorf Astoria Hotel in New York City in 2015. And in 2016, the insurer paid US$6.5 billion to purchase Blackstone’s Strategic Hotels & Resorts portfolio of 16 luxury hotels across the United States.
CIRC’s statement also said:The takeover may end in a year if asset disposals are completed, strategic shareholders have inj