(Yicai Global) July 5 -- Some of Anbang Insurance Group's assets have been stripped from the firm, Liang Tao, vice chairman of the China Banking and Insurance Regulatory Commission, said yesterday.
Its predecessor agency, which had oversight over the banking sector, took over management of the distressed firm last year because of its grievous violations of insurance rules.
Wu Xiaohui, Anbang Insurance's former chairman, is serving an 18-year prison sentence for fraudulent financing and abuse of office. He forfeited CNY10.5 billion (USD1.5 billion) in assets last year.
As the Beijing-based insurer had done business in violation of insurance laws and regulations, with practices likely to imperil its solvency, the then-China Insurance Regulatory Commission -- it merged with the China Banking Regulatory Commission in April -- took over its management for one year, the regulator announced on Feb. 23 last year. It extended this term for one more year this February.
The CBIRC is bolstering Anbang's management to ensure the security of cash flow and protect consumers' rights and interests, Liang stated, adding it is also shrinking small and medium wealth management products and trimming their proportion by as much as 15 percent by late this year. The agency will also speed up disposal of the firm's assets and its business transformation, spin-offs and reorganization.
Formed in 2004, Anbang Insurance holds assets of over CNY1.9 trillion (USD276.5 billion). The firm underwrites property insurance, manages wealth and sells insurance. It has over 3,000 service outlets and more than 30 million clients.
Editor: Ben Armour