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China Fund News Taylor

Anbang goes bankrupt!

Anbang Insurance Group and Anbang Property & Casualty Insurance Co., Ltd. have been approved for bankruptcy

On August 2, the State Financial Supervision and Administration Bureau recently issued a reply.Agree to Anbang Insurance Group Co., Ltd. and Anbang Property & Casualty Insurance Co., Ltd. to enter bankruptcy proceedingsThe original text of the reply is as follows:

The State Financial Supervision and Administration Bureau's reply on the bankruptcy of Anbang Insurance Group Co., Ltd.

Jinfu [2024] No. 400

Anbang Insurance Group Co., Ltd.：

We have received the "Request for Application for Bankruptcy and Liquidation of Anbang Insurance Group Co., Ltd." (Anbangzi [2024] No. 9). After study, we hereby approve it as follows:

1. In principle, we agree that Anbang Insurance Group Co., Ltd. will enter bankruptcy proceedings.

2. Your company should carry out follow-up work in strict accordance with relevant laws and regulations. If any major situation occurs, report it to the Financial Supervision Administration in a timely manner.

State Financial Supervision and Administration Bureau

June 12, 2024

The State Financial Supervision and Administration Bureau's reply on the bankruptcy of Anbang Property & Casualty Insurance Co., Ltd.

Jinfu [2024] No. 401

Anbang Property & Casualty Insurance Co., Ltd.：

We have received the "Request for Application for Bankruptcy and Liquidation of Anbang Property and Casualty Insurance Co., Ltd." (Anbang Property and Casualty Insurance [2024] No. 101). After study, we hereby approve it as follows:

1. In principle, we agree that Anbang Property & Casualty Insurance Co., Ltd. shall enter into bankruptcy proceedings.

2. Your company should carry out follow-up work in strict accordance with relevant laws and regulations. If any major situation occurs, report it to the Financial Supervision Administration in a timely manner.

State Financial Supervision and Administration Bureau

June 12, 2024

This means that the insurance giant, whose assets once reached 2 trillion yuan, has officially exited the stage of history.

process

On February 23, 2018, the former China Insurance Regulatory Commission announced that, in view of the fact that Anbang Insurance Group had engaged in business activities that violated the provisions of the Insurance Law and might seriously jeopardize the company's solvency, in accordance with Article 144 of the Insurance Law, it decided to take over Anbang Insurance Group for a period of one year. The head of the takeover team is He Xiaofeng, director of the Development and Reform Department of the former China Insurance Regulatory Commission.

At the same time, Anbang’s former chairman Wu Xiaohui was also prosecuted in accordance with the law for suspected economic crimes.

On February 22, 2019, the former China Banking and Insurance Regulatory Commission stated that in order to consolidate the results and actively promote Anbang Group's transition to normal operation, in accordance with Article 146 of the Insurance Law, it decided to extend the takeover period of Anbang Group by one year.

In July 2019, the former China Banking and Insurance Regulatory Commission approved China Insurance Security Fund Co., Ltd., China Petrochemical Corporation, and Shanghai Automotive Industry (Group) Corporation to jointly invest in the establishment of a new insurance entity - Dajia Insurance Group, with a registered capital of 20.36 billion yuan. The legal representative of the company is He Xiaofeng, head of the Anbang Insurance takeover working group.

Dajia Insurance Group legally acquired the equity interests of Anbang Life, Anbang Pension and Anbang Asset Management, as well as some of Anbang Property & Casualty Insurance's insurance businesses, assets and liabilities. Anbang Life, Anbang Pension and Anbang Asset Management were renamed Dajia Life, Dajia Pension and Dajia Asset Management respectively. After the reorganization is completed, Anbang Insurance Group will not carry out new insurance business.

On February 22, 2020, in accordance with relevant regulations, the newly established Dajia Insurance Group Co., Ltd., which was spun off from Anbang Insurance Group Co., Ltd., has basically acquired the ability to operate normally, and the China Banking and Insurance Regulatory Commission has ended its takeover of Anbang Group in accordance with the law.

On September 14, 2020, Anbang Insurance Group Co., Ltd. announced on its official website that it held a shareholders' meeting today, at which it resolved to dissolve the company and set up a liquidation group (in preparation). Next, the company will apply to the China Banking and Insurance Regulatory Commission for dissolution in accordance with laws and regulations, and organize liquidation in a timely manner after obtaining relevant administrative permits.

According to the relevant person in charge of the former China Banking and Insurance Regulatory Commission, Anbang Group concentrated on selling more than 1.5 trillion yuan of medium- and short-term wealth management insurance products from 2015 to the first half of 2017, and there was a peak in maturity payment and surrender from 2018 to early 2020. The China Banking and Insurance Regulatory Commission attaches great importance to protecting the legitimate rights and interests of insurance consumers, and guides the company to set up an independent team to promote the redemption of existing policies, proactively provide customers with information such as policy maturity reminders, and accept 130,000 surrender consultations. Strictly fulfill all commitments to consumers and pay according to the agreed interest rate in the contract or at the time of sale. As of January 2020, all 1.5 trillion yuan of medium- and short-term wealth management insurance issued by Anbang Group before the takeover had been redeemed, without any overdue or default incidents, and smoothly passed the peak of cash flow payment, effectively protecting the legitimate rights and interests of insurance consumers.