Dagong Global Credit Rating downgrades insurer Anbang Life
August 29, 2017 Category China News Round-up, Weekly
The credit rating of Anbang Life Insurance Co was downgraded by Dagong Global Credit Rating Co, three months after the regulator curtailed its operations and two months since the Chairman of its parent company disappeared from public sight. The downgrade by one notch to AA+ came as Dagong said that Anbang Life is facing growing debt repayment pressure as a result of liquidity strains and falling investment yields.
Anbang Life is an arm of Anbang Insurance Group, which has come under fire for its aggressive overseas acquisitions, including the purchase of New York City’s Waldorf Astoria Hotel for USD2 billion. Anbang Group Chairman Wu Xiaohui left his job in June to help Chinese authorities with an investigation, and could not perform his duties for “personal reasons”.
Dagong Global said that Anbang Life booked a loss in the first half of 2017 and that its “operating revenue has been dropping fast”. Anbang’s life insurance premiums fell to CNY56.5 million in May from CNY85.2 billion in January. Both Anbang and the China Insurance Regulatory Commission (CIRC) denied media reports that Anbang had been ordered to sell its overseas assets.
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