[Alpha Biz= Reporter Kim Sangjin] Chinese authorities have approved bankruptcy proceedings for Anbang Insurance, which once had assets totaling 2 trillion yuan (approximately 380 trillion KRW), according to reports from Chinese media such as Caixin on the 3rd.
According to the reports, the National Financial Regulatory Administration, which oversees the financial sector in China, recently announced this decision on its website.
Anbang Insurance is a private financial group founded in 2004 by Wu Xiaohui, the son-in-law of Deng Xiaoping.
There were rumors that Chen Xiaoru, the son of revolutionary figure Chen Yi, was either the real owner or a business partner of Wu.
Wu Xiaohui rapidly expanded the business by leveraging connections with top Chinese officials.
At its peak, Anbang Insurance's total assets reached 2 trillion yuan, making it an exceptional success story in China's financial sector for a private company.
The company was also aggressive in its overseas operations, acquiring major financial firms in other countries, including Dongyang Life Insurance and the former Allianz Life (now ABL Life) in South Korea.
However, the success story came to an end in 2017 when Wu Xiaohui, then chairman, was arrested on corruption charges.
Wu was sentenced to 18 years in prison for embezzling 65.24 billion yuan and had personal assets worth 10.5 billion yuan confiscated. The management rights of Anbang Insurance were seized by the Chinese authorities.
AlphaBIZ Kim SangJin(letyou@alphabiz.co.kr)
