China gives nod for new firm to replace Anbang Insurance

China’s The Insurance regulator of China has recently given its official approval in order to set up a new company called Dajia Insurance Group to take over the assets of Anbang, a giant conglomerate that has been under state control for over a year. Before authorities launched a campaign to regulate risky outbound mergers and acquisitions, Anbang had been of China’s most aggressive buyers of global assets. 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 will accept the transfer of stock rights from Anbang’s subsidiaries such as Anbang Life Insurance, Anbang Pension and Anbang Asset Management, the statement stated. 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. 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.