Anbang

Anbang, formally known as Anbang Insurance Group, was a Chinese holding company based in Beijing whose subsidiaries operated primarily in insurance, banking and related financial services. Founded in 2004 by Wu Xiaohui as a regional automobile insurer, the group expanded well beyond its initial business. Its activities came to include life insurance, property and casualty insurance, financial products, banking interests and a large investment portfolio spanning hotels, real estate, retirement facilities and overseas insurers. The company’s growth was unusually rapid. Early shareholders included Shanghai Automotive Industries Corporation, a state-owned automobile manufacturer, and Sinopec, the state-owned oil company. Anbang’s ownership and political connections attracted continuing attention, particularly after Chen Xiaolu, a prominent military family descendant, was associated with the company as an early director or adviser. By the middle of the 2010s, Anbang had become one of the most visible Chinese buyers of overseas financial and hospitality assets. Its acquisitions included Belgium’s Fidea Verzekeringen, the Waldorf Astoria New York, Dutch insurer VIVAT, a majority stake in South Korea’s Tongyang Life, Allianz’s South Korean operations, and Strategic Hotels & Resorts, a portfolio of high-profile American hotels. This international expansion increased Anbang’s profile but also intensified questions about its ownership arrangements, sources of funding, governance, related-party transactions and risk controls. The group was frequently described as having strong political connections. Its aggressive acquisition strategy also exposed it to complex cross-border financing and insurance-liability risks. Some proposed transactions, including a bid for Starwood Hotels & Resorts and an attempted purchase of Fidelity & Guaranty Life, did not close. Wu Xiaohui was detained by Chinese authorities in June 2017 while Anbang’s activities were being investigated. In February 2018, the China Insurance Regulatory Commission took control of the group, citing serious risks to its solvency and operations. Wu was later convicted of fraud and embezzlement and sentenced to 18 years in prison. During the regulatory takeover, Anbang’s insurance business and related assets were reorganized. Dajia Insurance was established in 2019 to assume portions of the business and policyholder obligations. Anbang no longer operated as the same independent diversified financial group after the takeover. Reuters reported in September 2020 that the company would be disbanded and liquidated. Its history is therefore associated both with the internationalization of Chinese insurance capital and with the regulatory challenges created by rapid, highly leveraged expansion.

Anbang began in 2004 as a regional automobile insurance company founded by Wu Xiaohui. Its early shareholder base included Shanghai Automotive Industries Corporation, which held a 20 percent interest, and Sinopec, which acquired a comparable stake in 2005. The company subsequently broadened its insurance activities and developed into a holding group involved in life insurance, property and casualty insurance, banking and other financial services. The group’s domestic expansion was accompanied by an increasingly ambitious international investment strategy. It bought insurers in Europe and Asia, including Belgium’s Fidea Verzekeringen, the Dutch insurer VIVAT, South Korea’s Tongyang Life and Allianz’s South Korean operations. It also pursued assets outside traditional insurance. The acquisition of the Waldorf Astoria New York in 2014 made Anbang a highly visible participant in the global hotel market. In 2016, it agreed to acquire a portfolio of 16 prominent hotels from Strategic Hotels & Resorts, including Hotel del Coronado, the Westin St. Francis and the JW Marriott Essex House. Anbang also acquired Canadian retirement-home operator Retirement Concepts. Not all expansion plans succeeded. Its proposed purchase of Fidelity & Guaranty Life did not close, and a consortium led by Anbang failed in its effort to acquire Starwood Hotels & Resorts. The company also ended discussions concerning a possible investment in the Manhattan office tower at 666 Fifth Avenue. As the group grew, observers and regulators examined its ownership structure, funding sources, governance and risk management. Its rapid acquisitions and insurance-linked investment strategy made it an important example of the international reach of Chinese capital, while its political connections and opaque corporate arrangements generated controversy. Wu Xiaohui was detained in June 2017. In February 2018, the China Insurance Regulatory Commission took control of Anbang, beginning a formal risk-resolution process. Wu was later found guilty of fraud and embezzlement and sentenced to 18 years in prison. The regulatory takeover resulted in the reorganization of Anbang’s insurance activities and related assets. Dajia Insurance was established in 2019 and assumed portions of the business and policyholder responsibilities. In September 2020, Reuters reported that Anbang would be disbanded and liquidated. The group consequently became defunct as an independent insurance and financial-services brand.

1. 2020Disbanding and liquidation reported

   Reuters reported that Anbang would be disbanded and liquidated.

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2. 2019Dajia Insurance established

   Dajia Insurance was created as part of the restructuring of Anbang’s insurance business.

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3. 2018Regulatory takeover and criminal conviction

   The Chinese insurance regulator took control of Anbang, and Wu Xiaohui was sentenced to 18 years for fraud and embezzlement.

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4. 2017Chairman detained

   Wu Xiaohui was detained as Chinese authorities investigated Anbang’s activities.

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5. 2016Hotel and financial-services portfolio expands

   Anbang acquired Strategic Hotels & Resorts and Allianz’s South Korean operations, while pursuing additional overseas transactions.

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6. 2015Expansion into Dutch and South Korean insurance

   The group acquired VIVAT in the Netherlands and a majority stake in South Korea’s Tongyang Life.

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7. 2014International acquisition program begins

   Anbang acquired Belgian insurer Fidea Verzekeringen and purchased the Waldorf Astoria New York.

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8. 2005Sinopec becomes an early shareholder

   State-owned oil company Sinopec acquired a 20 percent stake in Anbang.

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9. 2004Anbang founded as an automobile insurer

   Wu Xiaohui founded Anbang as a regional car insurance company in China.

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A diversified insurance group and insurance-capital investment platform

• Life insuranceInsurance

  Anbang’s life-insurance business provided personal protection and savings-oriented policies. Life insurance was a central component of the group’s move from regional automobile insurance into a diversified financial-services model. The business was ultimately included in the regulatory restructuring of Anbang’s insurance operations.

• Property and casualty insuranceInsurance2004

  The group offered property and casualty coverage for property, automobile and related liability risks. This business complemented its life-insurance operations and represented Anbang’s original general-insurance foundation. It did not continue under the Anbang brand after the regulatory takeover and subsequent restructuring.

• Accident and health insuranceInsurance

  Accident and health products formed part of Anbang’s broader range of personal insurance offerings. Specific product names and launch dates are not established in the supplied sources, but these lines were associated with the group’s diversified insurance model.

• Financial and investment servicesFinancial services

  Beyond underwriting insurance, Anbang operated through subsidiaries involved in banking, financial services and investment activities. The group used its insurance platform to build a geographically diverse portfolio of financial, real-estate and lodging assets. These activities ended as an independent Anbang operation after the regulatory resolution.

• 2018Regulatory takeover and risk resolutionStrategy

  Regulators intervened after concerns about Anbang’s financial condition, governance and business activities.

  What changed. The Chinese insurance regulator took control of the group and reorganized its insurance operations and related assets.

  Aftermath. Dajia Insurance was later established to assume parts of the business, while Anbang ceased operating as an independent group.

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• 2016Acquire Strategic Hotels & ResortsM&A

  Anbang continued pursuing large overseas investments in hospitality and real estate.

  What changed. Anbang agreed to acquire 16 hotels from Blackstone’s Strategic Hotels & Resorts portfolio.

  Aftermath. The purchase strengthened the group’s profile as a major international hotel investor.

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• 2016Bid for Starwood Hotels & ResortsM&A

  Anbang attempted to extend its hospitality portfolio through a consortium-led bid.

  What changed. A consortium led by Anbang offered to acquire Starwood Hotels & Resorts.

  Aftermath. The bid was unsuccessful and the acquisition did not proceed.

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• 2015Acquire VIVAT and Tongyang Life stakeM&A

  Anbang expanded its insurance footprint in Europe and Asia through cross-border acquisitions.

  What changed. The group acquired Dutch insurer VIVAT and a majority stake in South Korean insurer Tongyang Life.

  Aftermath. The transactions increased Anbang’s international insurance presence before the group’s later regulatory takeover.

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• 2014Acquire the Waldorf Astoria New YorkM&A

  Anbang sought to diversify beyond insurance through prominent overseas lodging and real-estate assets.

  What changed. The group purchased the Waldorf Astoria New York from Hilton Hotels.

  Aftermath. The transaction became a prominent example of Anbang’s international expansion and investment-oriented strategy.

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• 2019Concerns over care at Retirement Concepts facilitiesControversy

  Three Canadian retirement homes associated with Retirement Concepts were placed under health-authority management after reported concerns about the adequacy of care provided to residents.

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• 2018Regulatory takeover and criminal caseControversy

  The China Insurance Regulatory Commission took control of Anbang in February 2018. Wu Xiaohui was later convicted of fraud and embezzlement and sentenced to 18 years in prison.

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• 2017Investigation of Anbang and detention of Wu XiaohuiControversy

  Chinese authorities detained chairman Wu Xiaohui in June 2017 while investigating Anbang’s activities. The episode brought heightened attention to the group’s ownership structure, funding arrangements, governance and rapid overseas expansion.

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• 2020Anbang to be disbanded and liquidated

  Reuters reported that Anbang would be dissolved and liquidated after the regulator-led resolution process.

  BankruptcyRegulation
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• 2019Dajia Insurance established during Anbang restructuring

  A new insurer, Dajia Insurance, was created during the resolution process to assume parts of Anbang’s insurance business and obligations.

  M&ARegulationOther
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• 2016Anbang bid for Starwood fails

  A consortium led by Anbang made a large offer for Starwood Hotels & Resorts, but the proposed acquisition was ultimately unsuccessful.

  M&AOther
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• 2016Anbang acquires Strategic Hotels & Resorts portfolio

  Anbang agreed to buy 16 landmark hotels from Blackstone’s Strategic Hotels & Resorts portfolio, including Hotel del Coronado and the Westin St. Francis.

  M&A
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• 2016Anbang purchases Allianz operations in South Korea

  The group acquired Allianz’s South Korean operations, adding to its Asian insurance holdings.

  M&A
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• 2015Anbang acquires Dutch insurer VIVAT

  Anbang purchased VIVAT in the Netherlands and committed additional capital while assuming existing debt obligations.

  M&A
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• 2015Anbang buys stake in Tongyang Life

  Anbang acquired a majority stake in South Korean insurer Tongyang Life, broadening its Asian insurance presence.

  M&A
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• 2014Anbang buys Waldorf Astoria New York

  Anbang acquired the Waldorf Astoria New York from Hilton Hotels in a landmark overseas hospitality transaction.

  M&AOther
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• 2014Anbang expands European insurance portfolio

  The group acquired Belgian insurer Fidea Verzekeringen as part of its international insurance expansion.

  M&A
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1. Anbang
2. Dajia Insurance
3. Reuters report on Anbang liquidation
4. 安邦报告解散和清算计划