Chinese regulators took control of Anbang Insurance Group, a private Chinese conglomerate best known for acquiring the Waldorf Astoria hotel in New York. In Belgium the group is owner of Fidea and Bank Nagelmackers. It is to be expected that some foreign assets will be sold. Former Chairman Wu Xiaohui is being prosecuted for economic crimes. The China Insurance Regulatory Commission (CIRC) said in a statement that Anbang had violated regulations and laws, which could “seriously endanger” its solvency. Therefore the regulator will take over the insurer for one year till February 22, 2019 to ensure normal business operations and to safeguard the interests of consumers, the statement said. During the takeover period, Anbang’s external liabilities will not change, the CIRC said. Anbang’s general meeting of shareholders and its board of directors will cease to perform their duties during the takeover period. All the company’s daily operations will be taken over by a working group led by He Xiaofeng, Director of the CIRC’s Reform and Development Department. The regulators also plan to introduce new private capital to complete Anbang’s shareholding restructuring and will ensure that it remains a privately-owned company.

Prosecutors claim Wu Xiaohui committed fundraising fraud and embezzlement by taking advantage of his post. The No 1 Branch of the Shanghai Municipal People’s Procuratorate is handling the case. The CIRC began its investigation into Anbang in June last year. Anbang has total assets of about CNY1.97 trillion and was ranked 139 on the Fortune Global 500 list last year. The group’s main businesses are property and casualty insurance, life insurance, insurance brokerage and asset management.

Anbang has a 15.5% stake in China’s biggest private bank, Minsheng Bank, and a 10.7% stake in the joint stock Merchants’ Bank. Anbang held a 3.4% and 5.3% share of the national insurance premium market in 2015 and 2016, respectively, but its market share of all investment products was much higher, at 6.4% and 19.4%, in these two years. By September 2017, the company was facing total debt worth CNY163.8 billion, according to Bloomberg data.

Tim Rooney, CEO of Anbang Belgium, the holding owning Fidea and Bank Nagelmackers, said that the Belgian units operate independently, are adequately capitalized and self-reliant, adding that he doesn’t expect any changes in the Belgian units of Anbang or any moves to sell them.