Anbang Insurance Group () was a Chinese

holding company A holding company is a company whose primary business is holding a controlling interest in the Security (finance), securities of other companies. A holding company usually does not produce goods or services itself. Its purpose is to own Share ...

whose subsidiaries mainly deal with

insurance Insurance is a means of protection from financial loss in which, in exchange for a fee, a party agrees to compensate another party in the event of a certain loss, damage, or injury. It is a form of risk management, primarily used to protect ...

banking A bank is a financial institution that accepts Deposit account, deposits from the public and creates a demand deposit while simultaneously making loans. Lending activities can be directly performed by the bank or indirectly through capital m ...

, and

financial services Financial services are service (economics), economic services tied to finance provided by financial institutions. Financial services encompass a broad range of tertiary sector of the economy, service sector activities, especially as concerns finan ...

based in

Beijing Beijing, Chinese postal romanization, previously romanized as Peking, is the capital city of China. With more than 22 million residents, it is the world's List of national capitals by population, most populous national capital city as well as ...

. As of February 2017, the company had assets worth more than (US$301 billion). The ''

Financial Times The ''Financial Times'' (''FT'') is a British daily newspaper printed in broadsheet and also published digitally that focuses on business and economic Current affairs (news format), current affairs. Based in London, the paper is owned by a Jap ...

'' described Anbang as "one of China’s most politically connected companies." Anbang was founded by Wu Xiaohui in 2004 as a regional

car insurance Vehicle insurance (also known as car insurance, motor insurance, or auto insurance) is insurance for automobile, cars, trucks, motorcycles, and other road vehicles. Its primary use is to provide financial protection against physical damage or bo ...

company. Chen Xiaolu, a prominent princeling and son of Marshal Chen Yi, served as an early director, although Chen stated that he was merely an advisor and not a shareholder. Its founding shareholders included state-owned car maker Shanghai Automotive Industries Corp., which held a 20% stake. In 2005, state-owned oil company

Sinopec China Petroleum and Chemical Corporation, or Sinopec Group, is a Chinese oil and gas enterprise based in Chaoyang District, Beijing. The SASAC administers China Petroleum and Chemical Corporation for the benefit of State Council of the ...

bought a 20% share in Anbang. Anbang has more than 30,000 employees in China and is engaged in offering various kinds of insurance and financial products. Anbang's chairman, Wu Xiaohui, was detained in Beijing by government authorities on June 8, 2017, as an investigation of Anbang's activities. In February 2018, China's insurance regulator took control of Anbang, and Wu was prosecuted. On May 10, 2018, Wu Xiaohui was sentenced to 18 years of imprisonment after he was found guilty of

fraud In law, fraud is intent (law), intentional deception to deprive a victim of a legal right or to gain from a victim unlawfully or unfairly. Fraud can violate Civil law (common law), civil law (e.g., a fraud victim may sue the fraud perpetrato ...

and

embezzlement Embezzlement (from Anglo-Norman, from Old French ''besillier'' ("to torment, etc."), of unknown origin) is a type of financial crime, usually involving theft of money from a business or employer. It often involves a trusted individual taking ...

Overseas acquisitions

The company holds a geographically diversified portfolio of assets in

, real estate and

lodging Lodging refers to the use of a short-term dwelling, usually by renting the living space or sometimes through some other arrangement. People who travel and stay away from home for more than a day need lodging for sleep, rest, food, safety, shel ...

. *In 2014, Anbang Insurance acquired Fidea Verzekeringen, an insurer based in

Belgium Belgium, officially the Kingdom of Belgium, is a country in Northwestern Europe. Situated in a coastal lowland region known as the Low Countries, it is bordered by the Netherlands to the north, Germany to the east, Luxembourg to the southeas ...

. *In 2014, Anbang Insurance purchased the

Waldorf Astoria New York The Waldorf Astoria New York is a luxury hotel and condominium residence in the Midtown Manhattan neighborhood of New York City, New York. The structure, at 301 Park Avenue between 49th and 50th Streets, is a 47-story, Art Deco landmark des ...

hotel from

Hilton Hotels Hilton Hotels & Resorts (formerly known as Hilton Hotels) is a global brand of full-service hotels and resorts and the flagship brand of American multinational hospitality company Hilton Worldwide. The original company was founded by Conrad Hi ...

for nearly US$2 billion. *In 2015 Anbang purchased Dutch insurer from the

Netherlands , Terminology of the Low Countries, informally Holland, is a country in Northwestern Europe, with Caribbean Netherlands, overseas territories in the Caribbean. It is the largest of the four constituent countries of the Kingdom of the Nether ...

. Anbang paid the Netherlands €150m outright, and agreed to infuse between €770m and €1bn in fresh capital, and to take on €550m of debt. *In 2015 Anbang paid US$1 billion for a 57.5% stake in

South Korea South Korea, officially the Republic of Korea (ROK), is a country in East Asia. It constitutes the southern half of the Korea, Korean Peninsula and borders North Korea along the Korean Demilitarized Zone, with the Yellow Sea to the west and t ...

's Tongyang Life, an insurance company, in what was reported to be the first direct investment in a South Korean financial institution by a mainland China entity. *In November 2015, Anbang announced that it would buy

Iowa Iowa ( ) is a U.S. state, state in the upper Midwestern United States, Midwestern region of the United States. It borders the Mississippi River to the east and the Missouri River and Big Sioux River to the west; Wisconsin to the northeast, Ill ...

-based insurer Fidelity & Guaranty Life for about $1.57 billion. However, this deal never came to fruition. *In February 2016, the

Financial Post The ''Financial Post'' is a financial news website, and business section of the ''National Post'', both publications of the Postmedia Network. It started as an English Canadian business newspaper, which published from 1907 to 1998. In 1998, the ...

Canada Canada is a country in North America. Its Provinces and territories of Canada, ten provinces and three territories extend from the Atlantic Ocean to the Pacific Ocean and northward into the Arctic Ocean, making it the world's List of coun ...

reported that Anbang planned to purchase a 66% stake in four office towers of Bentall Centre in Vancouver from Ivanhoe Cambridge, a subsidiary of

Caisse de dépôt et placement du Québec The Caisse de dépôt et placement du Québec (, CDPQ; ) is an institutional investor that manages several public and parapublic pension plans and insurance programs in the Canadian province of Quebec. It was established in 1965 by an act of the ...

; and subsequently remaining 33% stake in May 2016. Terms of the deal were undisclosed. However, the price paid by Anbang is reported to value the property at over CAD$1 Billion. *In March 2016, Blackstone agreed to a further US$6.5 billion sale of 16 landmark US hotels owned by the Strategic Hotels & Resorts

REIT A real estate investment trust (REIT, pronounced "reet") is a company that owns, and in most cases operates, income-producing real estate. REITs own many types of real estate, including office and apartment buildings, studios, warehouses, hos ...

, including the historic Hotel del Coronado near

San Diego San Diego ( , ) is a city on the Pacific coast of Southern California, adjacent to the Mexico–United States border. With a population of over 1.4 million, it is the List of United States cities by population, eighth-most populous city in t ...

, the Westin St. Francis in

San Francisco San Francisco, officially the City and County of San Francisco, is a commercial, Financial District, San Francisco, financial, and Culture of San Francisco, cultural center of Northern California. With a population of 827,526 residents as of ...

, several Four Seasons resorts, and Manhattan's JW Marriott Essex House hotel. *In April 2016, Anbang purchased

Allianz Allianz SE ( , ) is a German Multinational corporation, multinational financial services company headquartered in Munich, Germany. Its core businesses are insurance and asset management. Allianz is the world's largest List of largest insurance ...

’s South Korea operations. *In 2016, Anbang purchased Retirement Concepts, a

Canadian Canadians () are people identified with the country of Canada. This connection may be residential, legal, historical or cultural. For most Canadians, many (or all) of these connections exist and are collectively the source of their being ''C ...

company with 24 retirement homes in

British Columbia British Columbia is the westernmost Provinces and territories of Canada, province of Canada. Situated in the Pacific Northwest between the Pacific Ocean and the Rocky Mountains, the province has a diverse geography, with rugged landscapes that ...

Calgary Calgary () is a major city in the Canadian province of Alberta. As of 2021, the city proper had a population of 1,306,784 and a metropolitan population of 1,481,806 making it the third-largest city and fifth-largest metropolitan area in C ...

and

Montreal Montreal is the List of towns in Quebec, largest city in the Provinces and territories of Canada, province of Quebec, the List of the largest municipalities in Canada by population, second-largest in Canada, and the List of North American cit ...

. The company was later criticised after three of the retirement homes on

Vancouver Island Vancouver Island is an island in the northeastern Pacific Ocean and part of the Canadian province of British Columbia. The island is in length, in width at its widest point, and in total area, while are of land. The island is the largest ...

were put under the management of the health authority due to reported inadequate care of facility residents in December 2019. Anbang has also made large-scale bids that did not culminate in a transaction. On March 14, 2016, a consortium led by Anbang made a US$14 billion offer for Starwood. Other members of the consortium included J.C. Flowers & Co and Primavera Capital Group. The latter is headed by Fred Hu, the former chairman of Greater China at

Goldman Sachs The Goldman Sachs Group, Inc. ( ) is an American multinational investment bank and financial services company. Founded in 1869, Goldman Sachs is headquartered in Lower Manhattan in New York City, with regional headquarters in many internationa ...

. The bid was ultimately unsuccessful. In 2017, the company also ended talks to invest billions of dollars in a Manhattan office tower (

666 Fifth Avenue 660 Fifth Avenue (formerly 666 Fifth Avenue and the Tishman Building) is a 41-story office building on the west side of Fifth Avenue between 52nd and 53rd Streets in the Midtown Manhattan neighborhood of New York City, United States. The off ...

) owned by the family of Jared Kushner,

President Trump Donald John Trump (born June 14, 1946) is an American politician, media personality, and businessman who is the 47th president of the United States. A member of the Republican Party, he served as the 45th president from 2017 to 2021. ...

’s son-in-law and a senior

White House The White House is the official residence and workplace of the president of the United States. Located at 1600 Pennsylvania Avenue Northwest (Washington, D.C.), NW in Washington, D.C., it has served as the residence of every U.S. president ...

aide.

Liquidation

On 14 September 2020,

Reuters Reuters ( ) is a news agency owned by Thomson Reuters. It employs around 2,500 journalists and 600 photojournalists in about 200 locations worldwide writing in 16 languages. Reuters is one of the largest news agencies in the world. The agency ...

reported that Anbang would disband and liquidate the company.

References

External links

* {{Insurance industry in China Insurance companies of China Companies based in Beijing Chinese companies established in 2004 Financial services companies established in 2004 Privately held companies of China Chinese brands Companies that have filed for bankruptcy in the People's Republic of China Financial services companies disestablished in 2020