According to a statement seen by newspaper The Wall Street Journal, the China Banking and Insurance Regulatory Commission (CBIRC) approved the transfer of a 98.23% stake to the China Insurance Security Fund on 22 June.
Control of the insurer was seized in February 2018 by the China Insurance Regulatory Commission (CIRC), which rebranded as CBIRC in April.
The regulator said it would retain control of Anbang for one year, but this could be extended by another year if needed, a source told the WSJ.
Corruption concerns
An extravagant overseas shopping spree, that saw Anbang buy New York’s Waldorf Astoria hotel, drew regulatory scrutiny amid worries that the insurer had grown too risky.
The firm’s downfall started in April 2017, when it was forced to make statements illustrating its cash reserves and rebut rumours it was taking risky loans.
At the same time, the CIRC warned it was concerned about corruption in the sector.
The regulator is understood to have been overseeing the firm’s operations from as early as July 2017.
Cash injection
With control of the insurer in the hands of the regulators and its chairman facing a lengthy jail term, a cash injection worth RMB60.8bn (£7bn, $9.3bn, €8bn) was given by the China Insurance Security Fund (CISF) in March 2018.
A month later, chairman Wu Xiaohui was sentenced to 18 years in prison for fraud and embezzlement. He has since appealed his conviction.
At the time, it was stated that the CISF would temporarily hold shares in the group during its period under interim management.
The plan is to gradually transfer the fund’s shares in the insurer to maintain Anbang’s status as a private company.
