Caixin
Aug 30, 2019 03:18 AM
FINANCE

Dajia Insurance Sets Up 4 Units to Take over Anbang’s Assets

The name of Anbang’s Beijing headquarters was replaced with Dajia Insurance Group. Photo: VCG
The name of Anbang’s Beijing headquarters was replaced with Dajia Insurance Group. Photo: VCG

Dajia Insurance Group, created to take over parts of fallen Anbang Insurance Group Co. Ltd.’s assets, moved to erase the name Anbang from China’s financial industry as it established four subsidiaries and outlined their business scope in a statement Thursday.

Dajia was set up in June to receive Anbang’s life insurance, annuity insurance and asset management operations and some of the assets of its property and casualty insurance unit. The name on Anbang’s Beijing headquarters was replaced with Dajia last month, and the receiving company is putting its own name on Anbang’s former businesses.

The four Dajia subsidiaries cover life insurance, property and casualty insurance, annuity insurance and asset management, Dajia said.

Dajia Property and Casualty Insurance Co. Ltd. has 4 billion yuan ($560 million) of registered capital, providing insurance coverage for property loss, liability, credit and guarantee, short-term health, and accident and injury, as well as reinsurance, the parent company said on its official WeChat account.

After the takeover, Anbang Life will be renamed Dajia Life; Anbang Pension, Dajia Pension; and Anbang Asset Management, Dajia Asset Management. Anbang said the renaming will not change the relevant rights and obligations stipulated in contracts and agreements previously signed by Anbang and its subsidiaries, and the interests of insurance consumers will be protected.

China Merchants Bank, China Minsheng Bank and Chang Chun Eurasia Group Co. Ltd., in which Anbang owned stakes, recently issued announcements on the change of shareholders. After the takeover and name change, Dajia Life now owns 4.99% of China Merchants, 17.84% of China Minsheng and 14.99% of Eurasia.

Dajia has also sent notice of the name changes to more than 6 million individual policy holders to prevent misleading and fraudulent activities.

Debt-ridden Anbang was taken over by regulators in February 2018. That May, its founder Wu Xiaohui was sentenced to 18 years in prison for fundraising fraud and embezzlement.

So far, Anbang has disposed of or initiated the process of disposing of more than 1 trillion yuan of assets, China Banking and Insurance Regulatory Commission Vice Chairman Liang Tao said last month at a press briefing.

Dajia was jointly established by state-owned bailout fund China Insurance Security Fund Co. Ltd., state-owned Shanghai Automotive Industry (Group) Corp. and state-owned oil giant China Petrochemical Corp.

Contact Reporter Denise Jia (huijuanjia@caixin.com)


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