Financially strapped Anbang Insurance Group is now almost wholly owned by a state-run insurance bailout fund.
A statement from the China Banking and Insurance Regulatory Commission (CBIRC) says that the regulator approved the transfer of 98.23% of Anbang to the China Insurance Security Fund. The fund will hold control of Anbang until a private strategic shareholder is found.
The CBIRC has approved revisions to the charter of incorporation of Anbang, which see the Fund holding 60.8 billion shares of the company, or 98.23% of its total ordinary shares. The remaining stakes are owned by state-owned automaker SAIC Motor Corp and Sinopec, China’s top oil refiner, the CBIRC statement says.
The insurance group, previously controlled by Wu Xiaohui currently in jail for fraud, received a bailout loan of CNY60.8 billion ($9.35 billion) in April this year from the Fund. The capital injection is to help Anbang repay its debts so as to stabilise its operations and protect the interests of policyholders.
Wu has withdrawn a previous 'Guilty' plea and lodged an appeal against his conviction.