(Yicai Global) July 11 -- China Insurance Security Fund, China Petroleum & Chemical, or Sinopec, and SAIC Motor have been approved by China's bank and insurance regulator to jointly set up China Dajia Insurance Group to hold a stake in Anbang Life Insurance, Anbang Pension Insurance and Anbang Asset Management.

This development signals that the risk disposal work of Anbang Insurance Group has made significant progress, information on the China Banking and Insurance Regulatory Commission's website shows.

Dajia Insurance, which has registered capital CNY20.4 billion (USD3 billion), will form a property insurance company to take part of Beijing-based Anbang Insurance's business, assets and liabilities.

Anbang Insurance will redeem its stock redemption and thoroughly fulfill its insurance policy obligations to safeguard the legitimate rights and interests of its insured and all interested parties. The company will not underwrite any new businesses after it completes restructuring.

The CBIRC took over Anbang Insurance on Feb. 23 last year after Wu Xiaohui, its former chairman and general manager, was charged with financial crimes and the company also breached laws and regulations. Initially set for one year, the receivership term has been extended for another, i.e. until Feb. 22.

During this time, the CBIRC will actively introduce high-quality private capital and complete Anbang Insurance's equity restructuring and maintain it as a private firm, the CBIRC announced in February last year.

Wu, who is serving an 18-year sentence for fund-raising fraud and corporate embezzlement, also forfeited CNY10.5 billion in assets.

Editor: Ben Armour