Mainland Authorities Take Over Anbang Insurance

The mainland's insurance regulator said on Friday it was taking over control of Anbang Insurance Group Co for one year.

The China Insurance Regulatory Commission also said that former chairman Wu Xiaohui will be prosecuted for economic crimes. But no details of the charges were given.

"At present, operations of the Anbang Group are stable overall and business is basically steady," the statement said. "The legitimate rights and interests of insurance consumers and individual stakeholders are being protected effectively."

Best known overseas for its 2015 purchase of New York's landmark Waldorf Astoria hotel, Beijing-based Anbang has pursued a string of high-profile foreign acquisitions under Wu.

After a spate of successful deal-making worth over US$30 billion, Anbang ran into recent roadblocks, failing to close on a handful of investments, and facing criticism over the firm's opaque shareholding structure.

Attempts by the Chinese insurer to invest in a real estate project affiliated with US President Donald Trump's son-in-law floundered.

Anbang has more than 30,000 employees serving 35 million clients and has interests in life insurance, banking, asset management, leasing and brokerage services. (Additional reporting by AP)

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