(Yicai) Jan. 18 -- Shenergy Property Insurance was recently established in Shanghai. The new insurance company is expected to take over Tian’an Property Insurance, which was placed under the control of the regulatory authorities because of poor management.

Shenergy Property Insurance was set up in Shanghai with a registered capital of CNY10 billion (USD1.4 billion) on Jan. 16, according to corporate information platform Tianyancha.

Shanghai-based state-owned energy firm Shenergy Group is Shenergy Property Insurance’s largest shareholder with a 50 percent stake through its units Shenergy Investment and Shenergy. State-owned capital operating company Shanghai International Group and department store retailer Bailian Group are also among Shenergy Property Insurance’s shareholders.

China’s National Administration of Financial Regulation approved the establishment of Shenergy Property Insurance in September last year. Back then, the market expected the company to take over the assets and businesses of Tian’an Property Insurance, which was placed under the control of the China Banking and Insurance Regulatory Commission, the predecessor of the NAFR, in July 2020 because of payment difficulties.

At that time, in addition to Tian’an Property Insurance, the CBIRC also took over Hua Insurance, Tian’an Life Insurance, and Yi’an Property Insurance, which were all brought back to life last year. Hua Insurance was taken over by newly-established Rui Insurance, Tian’an Life Insurance was acquired by Zhonghui Life Insurance, and Yi’an Property Insurance was bought by Chinese new energy vehicle and battery giant BYD.

In 2022, Tian’an Property Insurance tried to transfer its asset portfolio on the Shanghai United Assets and Equity Exchange twice but failed to complete the transaction. The reserve price of the second listing was CNY1.9 billion (USD264 million), a 10 percent discount on the previous one. Its assets and liabilities to be transferred were CNY14.4 billion and CNY15.3 billion, respectively.

Editors: Dou Shicong, Futura Costaglione