FINANCE

China Approves Another State-Backed Takeover of Troubled Insurer

Published: Dec. 17, 2025 1:30 p.m. GMT+8

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China’s financial regulators have approved Fuze Life Insurance to take over the insurance business of the troubled J.K. Life Insurance Corp. Ltd., according to a regulatory filing published Tuesday.

The approval was issued by the Shandong bureau of the National Financial Regulatory Administration.

The move reflects China’s approach to resolving risks at troubled insurers through state-backed restructurings rather than liquidation.

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Fuze Life Insurance is approved to take over J.K. Life Insurance's business, as per China's financial regulators.
Two state firms hold 53% of Fuze Life, with China Insurance Security Fund owning 35% and providing major financial support.
China resolves troubled insurers’ risks through state-led restructurings, using approaches seen in Huaxia and Tianan Life cases.

AI generated, for reference only

Who’s Who

Fuze Life Insurance: Fuze Life Insurance has been approved by Chinese financial regulators to acquire the insurance business of J.K. Life Insurance Corp. Ltd. This Shandong-based company is controlled by two state-owned investment firms, holding a 53% stake, with China Insurance Security Fund Co. Ltd. owning 35%. This move is part of China's strategy to resolve risks at troubled insurers through state-backed restructuring.

J.K. Life Insurance Corp. Ltd.: J.K. Life Insurance Corp. Ltd. was a troubled Chinese insurer whose business was taken over by Fuze Life Insurance. This indicates that J.K. Life was facing significant issues, leading to a state-backed restructuring rather than liquidation. The China Insurance Security Fund Co. Ltd. played a key role in the resolution of J.K. Life's risks, providing capital and ongoing support.

China Insurance Security Fund Co. Ltd.: **China Insurance Security Fund Co. Ltd.** is a state-run entity that owns 35% of Fuze Life. It actively supports risk resolution for troubled insurers like J.K. Life by providing capital injections, subsidies, and trust arrangements to cover legacy losses. This bailout fund plays a crucial role in state-backed restructurings, a common approach in China to avoid liquidating insurers.

Huaxia Life Insurance Co. Ltd.: Huaxia Life Insurance Co. Ltd. underwent a restructuring similar to J.K. Life Insurance Corp. Ltd. In this model, a newly established insurer absorbed the troubled business of Huaxia Life with support from the China Insurance Security Fund Co. Ltd., an industry bailout fund.

Tianan Life Insurance Co. Ltd.: Tianan Life Insurance Co. Ltd. underwent a restructuring, similar to Huaxia Life Insurance Co. Ltd. In this process, a newly established insurer absorbed its troubled business, with support from the China Insurance Security Fund Co. Ltd. This reflects China's approach to resolving risks at troubled insurers through state-backed restructurings rather than liquidation.

AI generated, for reference only