After takeover by govt, Anbang says committed to overseas subsidiaries (updated)

TONGYANG Life Insurance

26/02/2018 07:28

* Says "fully support" China govt move to take control of 
firm   
    * First comments by Anbang after govt's seizure of company 
    * Says will give needed support for overseas units' healthy 
growth 
 
 (Adds context around comments, and background) 
    BEIJING, Feb 26 (Reuters) - Anbang Insurance Group Co Ltd 
 ANBANG.UL  said on Monday it fully supported the Chinese 
insurance regulator's decision to temporarily take control of 
the company, and remains committed to the development of its 
overseas subsidiaries. 
    These are the first comments by Anbang on the Chinese 
government's move on Friday to seize control of the company. "We 
fully support CIRC's decision," a company spokesman said, 
referring to the China Insurance Regulatory Commission (CIRC), 
which announced the one-year takeover. 
    "We will continue to be committed to our overseas 
subsidiaries' business and investment, and will provide 
necessary support to their healthy development," the Anbang 
spokesman said. 
    The Chinese government's action on Anbang, along with the 
announcement that its chairman was being prosecuted for economic 
crimes, dramatically illustrated Beijing's willingness to 
curtail big-spending conglomerates as it cracks down on 
financial risk.  urn:newsml:reuters.com:*:nL4N1QD1C7 
    Analysts and lawyers do not think the manoeuvre heralds a 
coming wave of nationalizations, but said the sudden seizure of 
Anbang sent a strong message and raised questions about the 
future of its assets.  urn:newsml:reuters.com:*:nL4N1QF047 
    Anbang, which claims 1.97 trillion yuan ($310.85 billion) in 
assets and ranks 139 on the Global Fortune 500 list, had spent 
billions of dollars on overseas acquisitions in recent years, 
including $1.95 billion in 2015 for New York's landmark Waldorf 
Astoria hotel. 
    The once-aggressively acquisitive company later agreed to 
pay $6.5 billion for Strategic Hotels and Resorts. 
    In South Korea, Anbang also acquired Tongyang Life Insurance 
 082640.KS  in 2015, and later completed its acquisition of 
Allianz Korea. 
    In Europe, Anbang Life acquired Vivat, the Dutch insurer in 
2015, after buying Fidea insurance in Belgium a year earlier. 
The company also has acquired Retirement Concepts, the largest 
retirement home chain in British Columbia, Canada. 
    Sino-Ocean Group Holding Ltd  3377.HK , a property firm, 
said on Sunday it had received a written notice from Anbang 
saying the insurance group had no plans to alter its 
stake. urn:newsml:reuters.com:*:nL4N1QG142 
    Anbang held 29.97 percent of Sino-Ocean Group as at June 30, 
2017. 
    Anbang also has significant stakes in a slew of major 
Chinese companies and late on Friday some of the companies said 
they had received similar notices from Anbang assuring them that 
there would not be immediate stake sales. 
    Among them were China Minsheng Banking Corp Ltd  600016.SS  
 1988.HK , China Merchants Bank Co Ltd  600036.SS   3968.HK , 
developers China Vanke Co Ltd  000002.SZ   2202.HK  and Gemdale 
Corp  600383.SS . 
    The Chinese crackdown on risk in the insurance sector 
continued over the weekend. 
    The CIRC said on Saturday it would force three major 
insurers - Ping An Insurance (Group) Co of China  601318.SS , 
New China Life Insurance  601336.SS  and China Re Asset 
Management Co - to take steps to deal with overseas investments 
that had violated regulations.  urn:newsml:reuters.com:*:nL4N1QE0BG 
 
 (Reporting by Matthew Miller; Writing by John Ruwitch; Editing 
by Muralikumar Anantharaman) 
 ((john.ruwitch@tr.com; +86 21 6104 1786; Reuters Messaging: 
john.ruwitch.thomsonreuters.com@reuters.net; Twitter: 
@jruwitch)) 
 
Keywords: CHINA ANBANG/TAKEOVER