Former Chairman of Anbang Insurance Begins Trial in Shanghai
Former Chairman of Anbang Insurance, Wu Xiaohui is facing his trial in Shanghai for suspected fundraising fraud and embezzlement. In the trial, the prosecutor said the defendant, Wu Xiaohui had fraudulently raised money and “treated the firm’s capital as his own capital.”
” Former Chairman of Anbang Insurance, Wu Xiaohui Facing Trial in Shanghai “
In 2011, faked financial statements were submitted to China’s insurance regulator for approvals to sell insurance products to the public for investment, and selling more than the approved limit. By 2017, Anbang had oversold CNY 724 billion ($115 billion) of insurance products. He is alleged to illegally used CNY 65 billion ($10.3 million), with some of the funds being were routed to other firms for investments, debt repayment and personal spending.
In the trial, the former Chairman of Anbang Insurance, Wu Xiaohui raised objections and also believed he did not violate any regulations. His sister testified against him, claiming he controlled more than 200 companies (with some in the names of relatives), and 38 were used to control Anbang Group. According to China’s criminal code, the sentences are punishable by up to life sentence.
In February 2018, the Chinese government had seized control of Anbang Insurance Group. Anbang Insurance Group is being managed by a group of officials from the China Insurance Regulatory Commission (CIRC) for one year. The regulatory intervention is one of China’s recent moves to stop Chinese conglomerates on aggressive overseas acquisition and to reduce financial risk. The insurance conglomerate have significant stakes in banks and property developers including China Minsheng Banking Corp Ltd, China Merchants Bank Co Ltd, developers China Vanke Co Ltd and Gemdale Corp.
Anbang Insurance Group is a global insurance company with total assets of nearly CNY 1,9 trillion ($304 billion). The group employs over 30,000 employees and has a customer base of 35 million worldwide. Anbang Insurance Group was established in 2004,
In 2004, Anbang Property & Casualty Insurance was established and opened its first branch in Beijing. In 2011, CIRC approved the restructuring of Anbang Property & Casualty Insurance for the establishment of Anbang Insurance Group. Chairman Wu Xiaohui had transformed the group over the 10 years into one of the world’s largest insurance company. He is married to Zhuo Ran, the granddaughter of Deng Xiaoping, China’s leader between 1978 to 1989.
About Anbang Insurance Group
Anbang Insurance Group is a global insurance company with total assets of nearly 1971 billion RMB. With over 30,000 employees and a customer base of 35 million worldwide, Anbang stands out as one of the most profitable insurance companies in China. Its business covers life insurance, P&C insurance, health insurance, pension insurance, banking, asset management, etc. With a “customer-centric” strategy in mind, Anbang Insurance is dedicated to creating value for its worldwide customers.
Visit: Anbang Insurance Group
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