Anbang Insurance Group () was a Chinese

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

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 hedge ...

banking A bank is a financial institution that accepts 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 markets. Because ...

, and

financial services Financial services are the Service (economics), economic services provided by the finance industry, which encompasses a broad range of businesses that manage money, including credit unions, banks, credit-card companies, insurance companies, acco ...

based in

Beijing } Beijing ( ; ; ), alternatively romanized as Peking ( ), is the capital of the People's Republic of China. It is the center of power and development of the country. Beijing is the world's most populous national capital city, with over 21 ...

. 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 published digitally that focuses on business and economic current affairs. Based in London, England, the paper is owned by a Japanese holding company, Nik ...

'' described Anbang as "one of China’s most politically connected companies." Anbang was founded by

Wu Xiaohui Wu Xiaohui (; born 1966) is a Chinese businessman, the former chairman and chief executive of Anbang Insurance Group, then one of the largest insurers in China. In May 2018, he was sentenced to 18 years imprisonment on charges of fraud and embe ...

in 2004 as a regional

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

company.

Chen Xiaolu Chen Xiaolu (; 30 July 1946 – 28 February 2018) was a Chinese military officer and businessman. As a son of Marshal Chen Yi, he was one of China's most prominent princelings, or children of high officials. He held the rank of colonel when he ...

, a prominent

princeling A prince is a male ruler (ranked below a king, grand prince, and grand duke) or a male member of a monarch's or former monarch's family. ''Prince'' is also a title of nobility (often highest), often hereditary, in some European states. The ...

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 & Chemical Corporation (中国石油化工股份有限公司) or Sinopec (), is a Chinese oil and gas enterprise based in Beijing. It is listed in Hong Kong and also trades in Shanghai. Sinopec Limited's parent, Sinopec Gr ...

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,

, 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,

was sentenced to 18 years of imprisonment after he was found guilty of

fraud In law, fraud is intentional deception to secure unfair or unlawful gain, or to deprive a victim of a legal right. Fraud can violate civil law (e.g., a fraud victim may sue the fraud perpetrator to avoid the fraud or recover monetary compens ...

and

embezzlement Embezzlement is a crime that consists of withholding assets for the purpose of conversion of such assets, by one or more persons to whom the assets were entrusted, either to be held or to be used for specific purposes. Embezzlement is a type ...

Overseas acquisitions

The company holds a geographically diversified portfolio of assets in

real estate Real estate is property consisting of land and the buildings on it, along with its natural resources such as crops, minerals or water; immovable property of this nature; an interest vested in this (also) an item of real property, (more general ...

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 Baloise-Trek Lions (UCI Code: TBL) is a UCI Continental cycling team based in Belgium which focuses predominantly on the cyclo-cross season. The team is named after its main sponsors Baloise and Trek. The team had various different names in the ...

, an insurer based in

Belgium Belgium, ; french: Belgique ; german: Belgien officially the Kingdom of Belgium, is a country in Northwestern Europe. The country is bordered by the Netherlands to the north, Germany to the east, Luxembourg to the southeast, France to th ...

. *In 2014, Anbang Insurance purchased the

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

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. The original company was founded by Conrad Hilton. As ...

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

Netherlands ) , anthem = ( en, "William of Nassau") , image_map = , map_caption = , subdivision_type = Sovereign state , subdivision_name = Kingdom of the Netherlands , established_title = Before independence , established_date = Spanish Netherl ...

. 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, constituting the southern part of the Korea, Korean Peninsula and sharing a Korean Demilitarized Zone, land border with North Korea. Its western border is formed ...

'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 state in the Midwestern region of the United States, bordered by the Mississippi River to the east and the Missouri River and Big Sioux River to the west. It is bordered by six states: Wisconsin to the northeast, Illinois to the ...

-based insurer

Fidelity & Guaranty Life F&G Annuities & Life, Inc., previously known as Fidelity and Guaranty Life Insurance Company is an American financial company, primarily providing annuities and life insurance. The company was founded in 1959 and is based in Des Moines, Iowa. K ...

for about $1.57 billion. However, this deal never came to fruition. *In February 2016, the Financial Post in

Canada Canada is a country in North America. Its ten provinces and three territories extend from the Atlantic Ocean to the Pacific Ocean and northward into the Arctic Ocean, covering over , making it the world's second-largest country by tot ...

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

Ivanhoe Cambridge ''Ivanhoe: A Romance'' () by Walter Scott is a historical novel published in three volumes, in 1819, as one of the Waverley novels. Set in England in the Middle Ages, this novel marked a shift away from Scott’s prior practice of setting ...

, a subsidiary of

Caisse de dépôt et placement du Québec Caisse de dépôt et placement du Québec (CDPQ; ) is an institutional investor that manages several public and parapublic pension plans and insurance programs in Quebec. CDPQ was founded in 1965 by an act of the National Assembly, under the go ...

; 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 Strategic Hotels & Resorts is an American REIT in the hospitality industry. It was publicly traded on the New York Stock Exchange as BEE. The company owns 18 luxury hotels, 17 of which are located in the United States and one of which is in German ...

REIT A real estate investment trust (REIT) is a company that owns, and in most cases operates, income-producing real estate. REITs own many types of commercial real estate, including office and apartment buildings, warehouses, hospitals, shopping ce ...

, including the historic Hotel del Coronado near

San Diego San Diego ( , ; ) is a city on the Pacific Ocean coast of Southern California located immediately adjacent to the Mexico–United States border. With a 2020 population of 1,386,932, it is the List of United States cities by population, eigh ...

, the Westin St. Francis in

San Francisco San Francisco (; Spanish language, Spanish for "Francis of Assisi, Saint Francis"), officially the City and County of San Francisco, is the commercial, financial, and cultural center of Northern California. The city proper is the List of Ca ...

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

Allianz Allianz ( , ) is a German multinational financial services company headquartered in Munich, Germany. Its core businesses are insurance and asset management. The company is one of the world's largest insurers and financial services groups. The ...

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

Canadian Canadians (french: Canadiens) 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 ...

company with 24 retirement homes in

British Columbia British Columbia (commonly abbreviated as BC) is the westernmost province of Canada, situated between the Pacific Ocean and the Rocky Mountains. It has a diverse geography, with rugged landscapes that include rocky coastlines, sandy beaches, ...

Calgary Calgary ( ) is the largest city in the western Canadian province of Alberta and the largest metro area of the three Prairie Provinces. As of 2021, the city proper had a population of 1,306,784 and a metropolitan population of 1,481,806, makin ...

and

Montreal Montreal ( ; officially Montréal, ) is the List of the largest municipalities in Canada by population, second-most populous city in Canada and List of towns in Quebec, most populous city in the Provinces and territories of Canada, Canadian ...

. 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 Provinces and territories of Canada, province of British Columbia. The island is in length, in width at its widest point, and in total area, while are o ...

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 Goldman Sachs () is an American multinational investment bank and financial services company. Founded in 1869, Goldman Sachs is headquartered at 200 West Street in Lower Manhattan, with regional headquarters in London, Warsaw, Bangalore, H ...

. 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) owned by the family of

Jared Kushner Jared Corey Kushner (born January 10, 1981) is an American businessman and investor. He served as a senior advisor to 45th U.S. president Donald Trump, his father-in-law. Since leaving the White House, Kushner founded Affinity Partners, a pri ...

, President Trump’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. It is located at 1600 Pennsylvania Avenue NW in Washington, D.C., and has been the residence of every U.S. president since John Adams in 1800. ...

aide.

Liquidation

On 14 September 2020,

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

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