Chinese insurance company Anbang, which made headlines just over a month ago when it was formally taken over by China’s insurance regulator, will be given a rescue package of RMB 61 billion ($9.7 billion) from the government whilst it finds new long-term capital providers, the Financial Times reports.
Anbang was abruptly seized by the government’s insurance watchdog regulator in late February amid concerns that the company’s finances were too exposed to credit risk. The CEO was later investigated for financial fraud.
The issuer of the package, the China Insurance Security Fund, is a rainy-day pot of compulsory contributions from insurance companies, providing ‘bailouts for policyholders, policy transferee companies, other individuals and institutions, or participates in risk resolution of the insurance industry”, according to its website.