Insurer says the item will be committed to overseas subsidiaries

Anbang Insurance Group said on Monday the item fully supported the Chinese insurance regulator’s decision to temporarily seize control of the company, along with remains committed to the development of its overseas subsidiaries.

These are the first comments by Anbang on the Chinese government’s move on Friday to seize control of the company.

“We fully support CIRC’s decision,” a company spokesman said, referring to the China Insurance Regulatory Commission (CIRC), which announced the one-year takeover.

“We will continue to be committed to our overseas subsidiaries’ business along with investment, along with will provide necessary support to their healthy development,” the Anbang spokesman said.

The Chinese government’s action on Anbang, along with the announcement in which its chairman was being prosecuted for economic crimes, dramatically illustrated Beijing’s willingness to
curtail big-spending conglomerates as the item cracks down on financial risk.

Analysts along with lawyers does not think the manoeuvre heralds a coming wave of nationalizations, nevertheless said the sudden seizure of Anbang sent a strong message along with raised questions about the future of its assets.

Anbang, which claims 1.97 trillion yuan ($310.85 billion) in assets along with ranks 139 on the Global Fortune 500 list, had spent billions of dollars on overseas acquisitions in recent years, including $1.95 billion in 2015 for completely new York’s landmark Waldorf Astoria hotel.

The once-aggressively acquisitive company later agreed to pay $6.5 billion for Strategic Hotels along with Resorts.

In South Korea, Anbang also acquired Tongyang Life Insurance in 2015, along with later completed its acquisition of Allianz Korea.

In Europe, Anbang Life acquired Vivat, the Dutch insurer in 2015, after buying Fidea insurance in Belgium a year earlier.

The company also has acquired Retirement Concepts, the largest retirement home chain in British Columbia, Canada.

Sino-Ocean Group Holding Ltd, a property firm, said on Sunday the item had received a written notice through Anbang saying the insurance group had no plans to alter its stake.

Anbang held 29.97 percent of Sino-Ocean Group as at June 30, 2017.

Anbang also has significant stakes in a slew of major Chinese companies along with late on Friday some of the companies said they had received similar notices through Anbang assuring them in which
there would likely not be immediate stake sales.

Among them were China Minsheng Banking Corp Ltd, China Merchants Bank Co Ltd, developers China Vanke Co Ltd along with Gemdale Corp.

The Chinese crackdown on risk within the insurance sector continued over the weekend.

The CIRC said on Saturday the item would likely force three major insurers — Ping An Insurance (Group) Co of China, completely new China Life Insurance along with China Re Asset Management Co — to take steps to deal with overseas investments in which had violated regulations.

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