The Chinese government has seized control of a deal-hungry insurance firm that owns major assets in the U.S. and is prosecuting the company’s chairman.
China’s insurance regulator said Friday that it had taken control of Anbang Insurance for one year. The Chinese firm is best known for its ambitious deal-making efforts overseas, including the purchase of New York’s Waldorf Astoria, a failed bid for the Starwood hotel chain, and unsuccessful talks with the Kushner family business over a Manhattan office tower.
The China Insurance Regulatory Commission said in a series of statements that Anbang Chairman Wu Xiaohui has been removed from his post and is being prosecuted for “economic crimes.”
The regulator said the decision to put Anbang under government control was because of “illegal management and operation activities” that could “endanger” its ability to stay in business. It didn’t specify what those activities were.
The crackdown on the company follows an investigation that has been running since June, according to the statement. That’s when Wu was reported to have been detained by authorities.
Spokespeople for Anbang didn’t immediately respond to a request for comment Friday.
The regulator said that the company’s operations remain “stable” and that it will remain a private company. The temporary takeover of its operations is in order to protect the interests of consumers and the wider public, it said.
Anbang has drawn global attention in recent years for its aggressive pursuit of assets around the world.
The company was founded in 2004 as a provincial car insurer but has since ballooned into a global giant. In recent years, it snapped up businesses including life insurers in the Netherlands and South Korea, a Belgian bank and luxury hotels.
But Anbang has attracted plenty of controversy. Members of the U.S. Congress have previously raised concerns about the opaque insurer’s ties to the Chinese government.
— Nanlin Fang contributed to this report.