The latest news indicates that the Chinese Communist Party (CCP) has recently approved Anbang Insurance Group Co., Ltd. and Anbang Property Insurance Co., Ltd. to enter bankruptcy proceedings.
On August 2, the CCP’s China Banking and Insurance Regulatory Commission (CBIRC) website released two notices showing that the commission has approved Anbang Insurance Group Co., Ltd. and Anbang Property Insurance Co., Ltd. to enter bankruptcy proceedings.
Anbang Insurance Group was established in 2004, originally known as Anbang Property Insurance Co., Ltd.
Anbang Insurance Group was once one of the comprehensive insurance group companies in the Chinese insurance industry. Before bankruptcy, it operated various businesses including property insurance, life insurance, health insurance, asset management, insurance agent sales, insurance brokerage, and owned multiple subsidiaries such as Anbang Property Insurance Co., Ltd., Anbang Life Insurance Co., Ltd., Anbang Health Insurance Co., Ltd., and Anbang Asset Management Co., Ltd.
In 2008, Anbang established 37 branch offices, becoming the first enterprise in the property insurance industry approved by the former China Insurance Regulatory Commission to conduct telephone sales business in all provinces simultaneously. Subsequently, the group’s network expanded to all 31 provinces, autonomous regions, and municipalities across the country, with over three thousand outlets, more than 20 million customers, and an overseas asset management company. At one point, its total assets reached 2 trillion yuan.
Ten years later, in February 2018, the former China Insurance Regulatory Commission and Shanghai Procuratorate successively announced that Anbang Group engaged in business practices violating insurance regulations, which could seriously endanger the company’s solvency. In accordance with Article 144 of the Insurance Law, it was decided to take over Anbang Group.
According to the announcement, Wu Xiaohui, the former chairman of Anbang Group taken away in June 2017, was charged with economic crimes and prosecuted.
On May 10, 2018, Wu Xiaohui was sentenced to 18 years in prison for “fundraising fraud and embezzlement of duty,” with the confiscation of 10.5 billion yuan of assets. Wu Xiaohui was accused of swindling 65.248 billion yuan and illegally embezzling 10 billion yuan of Anbang Property Insurance premium funds using his position.
Wu Xiaohui became the first member of the “red second generation” arrested and sentenced during Xi Jinping’s tenure.
On July 11, 2019, the former China Insurance Regulatory Commission approved the establishment of Dajia Insurance Group Co., Ltd. with a registered capital of 20.36 billion yuan, jointly funded by China Insurance Security Fund, China Petrochemical Corporation, and Shanghai Automotive Industry (Group) Corporation, acquiring the equity of Anbang Life, Anbang Pension, and Anbang Asset Management; and established “Dajia Property Insurance” to take over some of Anbang Property Insurance’s insurance businesses, assets, and liabilities.
On February 22, 2020, the former China Banking and Insurance Regulatory Commission announced the liquidation and cancellation of Anbang Group and Anbang Property Insurance.
On September 14 of the same year, Anbang Insurance Group announced the decision to “dissolve the company” after a shareholder meeting and established a liquidation team. The next step will be to “apply for dissolution” to the CCP’s banking and insurance regulatory authorities, obtain relevant administrative approvals, and then organize the liquidation process.
A commentator from Epoch Times, Shi Shan, wrote that “Dajia Insurance” was specifically tailored as a company to take over Wu Xiaohui’s assets from Anbang Insurance. Regardless of the company’s ownership, assets, or profitability, the goal is to eliminate this company. Therefore, Anbang’s situation is not bankruptcy, acquisition, or merger, but “dissolution.”