Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

After takeover by government, Anbang says committed to overseas subsidiaries

Published 02/26/2018, 02:34 AM
Updated 02/26/2018, 02:34 AM
© Reuters. People enter the office of Anbang Insurance Group in Beijing

© Reuters. People enter the office of Anbang Insurance Group in Beijing

BEIJING (Reuters) - Anbang Insurance Group Co Ltd said on Monday it fully supported the Chinese insurance regulator's decision to temporarily take control of the company, and 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 and investment, and will provide necessary support to their healthy development," the Anbang spokesman said.

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

Analysts and lawyers do not think the maneuver heralds a coming wave of nationalizations, but said the sudden seizure of Anbang sent a strong message and raised questions about the future of its assets.

Anbang, which claims 1.97 trillion yuan ($310.85 billion) in assets and 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 New York's landmark Waldorf Astoria hotel.

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

In South Korea, Anbang also acquired Tongyang Life Insurance (KS:082640) in 2015, and later completed its acquisition of Allianz (DE:ALVG) 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 (HK:3377), a property firm, said on Sunday it had received a written notice from 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 and late on Friday some of the companies said they had received similar notices from Anbang assuring them that there would not be immediate stake sales.

Among them were China Minsheng Banking Corp Ltd (SS:600016) (HK:1988), China Merchants Bank Co Ltd (SS:600036) (HK:3968), developers China Vanke Co Ltd (SZ:000002) (HK:2202) and Gemdale Corp (SS:600383).

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

© Reuters. People enter the office of Anbang Insurance Group in Beijing

The CIRC said on Saturday it would force three major insurers - Ping An Insurance (Group) Co of China (SS:601318), New China Life Insurance (SS:601336) and China Re Asset Management Co - to take steps to deal with overseas investments that had violated regulations.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.