China’s insurance regulator said Saturday it has ended its two-year takeover of Anbang Insurance Group after defusing financial risks at the fallen conglomerate, which struggled to pay back investors following a massive asset-buying spree, reported Caixin.
The regulator took over Anbang in February 2018 after the company’s founder and former chairman Wu Xiaohui was investigated by police. In May that year, Wu was sentenced to 18 years behind bars for fundraising fraud and embezzlement.
In a bid to restructure the company, the China Banking and Insurance Regulatory Commission (CBIRC) transferred some assets from Anbang to newly created Dajia Insurance Group. Anbang retained control of toxic assets involved in Wu’s case as well as some other debts, said Caixin sources.
On Saturday, the CBIRC said in a statement that it planned to place Dajia into private hands in the future.