China approved takeover of China Evergrande’ insurance unit by newly established state-owned insurer
China approved takeover of China Evergrande’ insurance unit by newly established state-owned insurer

China approved takeover of China Evergrande’ insurance unit by newly established state-owned insurer

 

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China’s top financial regulator has approved the takeover of Evergrande Life Insurance, a unit of distressed property developer China Evergrande Group, by a state-owned insurer newly set up for the deal.

Haigang Life Insurance will assume all of Evergrande Life’s assets and liabilities and will fulfill its insurance contracts and protect its clients’ interests and rights, said the National Administration of Financial Regulation.

Haigang Life was set up by the China Insurance Security Fund, Taiping Life Insurance, and other state-owned firms with the sole aim of taking over Evergrande Life. 

State-backed Penglian Investment bought 51% of Haigang Life for 7.7 billion yuan, two other state-owned companies invested 1.2 billion yuan for 8% each, while the China Insurance Security Fund took a 25% stake for 3.8 billion yuan.