China Insurance Security Fund, a national insurance bailout fund, has injected 60.8 billion yuan ($9.66 billion) of capital into Anbang Insurance Group, according to a statement from the China Banking and Insurance Regulatory Commission released Wednesday.
The regulator said it has revoked permissions for previous capital injections by some shareholders of Anbang Insurance, which involved illegal fundraising and forgery of documents.
China Insurance Security Fund is a non-governmental fund that provides bailouts for insurance policyholders and mitigates risk in the insurance industry.
The CISF's capital injection was an interim risk prevention measure that aims to improve Anbang's corporate governance and replenish its solvency capability, the regulator said.
After the capital injection, Anbang will have a total registered capital of 61.9 billion yuan.
Anbang Insurance will soon initiate the selection of strategic shareholders to introduce good-quality private capital into the company and to ensure the safe exit of CISF, according to the regulator.
The insurer said in a statement Wednesday it will actively introduce private companies with strong capital positions and prudent investment styles from sectors including elderly care, health care and internet technology to participate in the shareholding restructure.
Chinese financial regulators took control of Anbang Insurance in February, after its former chairman Wu Xiaohui was prosecuted for economic crimes. Wu stood trial in Shanghai last week on charges of fraudulently raising 65.25 billion yuan and embezzlement. No verdict was given after the trial.
