8 May 2017Insurance

China’s regulator bans Anbang Life for three months

China's insurance regulator has barred Anbang Life Insurance from applying to issue new products for three months, the latest move in an industry-wide crackdown, Reuters reported May 5.

Anbang Life, a key part of Anbang Insurance Group, was cited for "disrupting market order" by designing a product that bypassed regulations aimed at curbing growth of short-term, risky universal life insurance products, the China Insurance Regulatory Commission (CIRC) said in an online public notice.

CIRC's move against Anbang Life comes during a widespread regulatory crackdown on what is seen as the excessive use of universal life products by some insurers, and as China's central leadership moves to curb risk in the financial system.

A handful of insurance firms, led by Anbang, have issued higher-yielding products to raise funds to acquire stakes in market-listed companies.

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More on this story

18 April 2017   Des Moines-based Fidelity & Guaranty Life (FGL) said that it terminated its merger agreement with China’s Anbang Insurance Group and that the company's board of directors has received interest from a number of alternative parties.