Anbang was one of China’s most aggressive buyers of global assets before authorities launched a campaign to regulate risky outbound mergers and acquisitions.
The Beijing-based Dajia Insurance Group has 20.36 billion yuan ($2.96 billion) in registered capital, funded by China Insurance Security Fund Co, Sinopec Group and SAIC Motor, read a statement released by the China Banking and Insurance Regulatory Commission(CBIRC).
Dajia, which means “everyone” in Chinese, will accept the transfer of stock rights from Anbang’s subsidiaries such as Anbang Life Insurance, Anbang Pension and Anbang Asset Management, the statement said.
A Dajia Property Insurance unit will also be established, which will take part of the insurance business, assets and debts from Anbang Property Insurance unit.
Dajia Insurance’s business will include investing and holding shares in insurance institutions and other financial institutions, and supervising and managing the domestic and international businesses of holding companies, according to information released by its official WeChat account.
The new insurer will also provide services as approved by the CBIRC.
After the completion of its restructuring, Anbang will not launch a new insurance business, the CBIRC said, noting that the plan that Dajia showed the insurance regulator had achieved progress in stages to dispose of Anbang’s risks.
A working group organizing the takeover will promote Dajia to be able to legally participate in the restructuring of Anbang and provide security services related to health, pension and wealth management, the CBIRC noted.
The Chinese insurance regulator took control of Anbang in February 2018, as part of a sweeping campaign to defuse financial risks for the firm after illegal practices threatened its solvency.
In May 2018, Anbang’s former chairman and general manager Wu Xiaohui was sentenced to 18 years in prison for fundraising fraud and embezzlement of corporate funds.