BEIJING – China’s insurance regulator announced on Friday it will take control of Anbang Insurance, one of the country’s main insurers in the country, after the company’s chairman was detained and likely to be prosecuted for financial irregularities.
The China Insurance Regulatory Commission (CIRC) said Anbang’s illegal business practices might endanger the company’s solvency.
A working committee comprising officials from the People’s Bank of China (Central), the Securities Regulatory Commission, the CIRC itself and other financial organizations has been created to handle the takeover.
The measure aims to maintain smooth operation of the company and protect consumer rights, although currently Anbang’s operations are stable, according to the commission.
Following the detention of Anbang’s Chairman, Wu Xiaohui, in June by authorities, an investigation had revealed violation of regulations.
The Beijing-based company had grabbed headlines in 2014 when it purchased New York’s iconic Waldorf Astoria hotel for $1.9 billion.
Wu, married to a granddaughter of the late Deng Xiaoping – one of China’s most respected communist leader – is one of China’s best-known multimillionaires.