Chinese regulators to investigate Anbang amid real estate push

Insurance Regulatory Commission fears liquidity mismatch

TRD New York /
May.May 09, 2016 01:00 PM

China’s insurance regulator plans to investigate Anbang Insurance Group amid its recent U.S. real estate investment binge.

According to a source quoted by Bloomberg, the China Insurance Regulatory Commission is putting together a team of inspectors to look at Anbang’s business model. The agency last week announced stricter oversight of insurance companies’ investments in real estate and private equity.

Anbang, which began a little over a decade ago as a regional car insurer and has close ties to China’s ruling elite, has been one of the most active foreign investors in U.S. real estate over the past two years. It recently bought the hospitality real estate investment trust Strategic Hotels and Resorts (Including the Essex House on Central Park South) from Blackstone for $6.5 billion and entered a $14 billion bidding war for Starwood Hotels & Resorts before mysteriously bowing out. In January 2015, it shelled out $1.95 billion for the Waldorf Astoria Hotel.

Regulators fear that insurers’ focus on relatively illiquid assets like real estate could lead to a liquidity mismatch – meaning they wouldn’t be able to pay off investors and policyholders in the event of a capital run. [Bloomberg] — Konrad Putzier


Related Articles

arrow_forward_ios
Ken TaeHern Kim, Zhongyuan Li and the Hyatt Regency Waikiki Beach (Linkedin, Google Maps)

Allegations fly in trial over Anbang and Mirae’s $5.8B hotel deal

Allegations fly in trial over Anbang and Mirae’s $5.8B hotel deal
Anbang’s Andrew Miller, Mirae’s Peter Lee and (from left) JW Marriott Essex House, the Westin St. Francis in San Francisco and the Four Seasons in Jackson Hole (Credit: Marriott, Westin, Four Seasons)

Buyer’s remorse?: How Anbang’s $5.8B hotel deal went sideways

Buyer’s remorse?: How Anbang’s $5.8B hotel deal went sideways
Clockwise from the top left: JW Marriott Essex House in New York, the Four Seasons in Jackson Hole and the Westin St. Francis in San Francisco with Daija CEO Andrew Miller (Credit: MusikAnimal via Wikipedia; Jackson Hole Real Estate; Booking)

Anbang’s $5.8B hotel portfolio sale scrapped

Anbang’s $5.8B hotel portfolio sale scrapped
CEO Andrew Miller and clockwise from top left: JW Marriott Essex House in New York, the Westin St. Francis in San Francisco and the Four Seasons in Jackson Hole

Coronavirus threat could help sink Anbang’s $5.8B hotels deal: report

Coronavirus threat could help sink Anbang’s $5.8B hotels deal: report
Waldorf Astoria - Crown on Park Avenue

Condo sales launch at Waldorf Astoria in crowded luxury market

Condo sales launch at Waldorf Astoria in crowded luxury market
Renderings of Waldorf Astoria

Inside the Waldorf Astoria’s condo conversion

Inside the Waldorf Astoria’s condo conversion
Bizarre case of deed fraud complicated Anbang’s $5.8B hotel portfolio deal

Bizarre case of deed fraud complicated Anbang’s $5.8B hotel portfolio deal

Bizarre case of deed fraud complicated Anbang’s $5.8B hotel portfolio deal
Anbang’s multibillion-dollar US luxury hotel portfolio may have buyer: report

Anbang’s multibillion-dollar US luxury hotel portfolio may have buyer: report

Anbang’s multibillion-dollar US luxury hotel portfolio may have buyer: report
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...