Chinese regulators to investigate Anbang amid real estate push

Los Angeles /
May.May 10, 2016 08:30 AM

From the New York site: 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
Placeholder image

Anbang closes on acquisition of Essex House, 14 Strategic properties

Anbang closes on acquisition of Essex House, 14 Strategic properties
The rise and fall of Anbang’s bid for Starwood

The rise and fall of Anbang’s bid for Starwood

The rise and fall of Anbang’s bid for Starwood
Who owns Anbang?

Who owns Anbang?

Who owns Anbang?
Marriott strikes back: Starwood accepts new $13.6B bid

Marriott strikes back: Starwood accepts new $13.6B bid

Marriott strikes back: Starwood accepts new $13.6B bid
Starwood accepts Anbang’s $13.2B takeover offer

Starwood accepts Anbang’s $13.2B takeover offer

Starwood accepts Anbang’s $13.2B takeover offer
(iStock)

LA County to provide nearly $6M in aid to restaurants

LA County to provide nearly $6M in aid to restaurants
HUD Secretary Ben Carson and Gov. Gavin Newsom (Getty)

$1B wildfire relief fund has distributed $0 to affected homeowners

$1B wildfire relief fund has distributed $0 to affected homeowners
Nile Niami with 9066 St. Ives Drive and 1369 Londonderry Place (Getty, Redfin, Altman Brothers)

Party foul: Nile Niami fined for large gatherings at luxury homes

Party foul: Nile Niami fined for large gatherings at luxury homes
arrow_forward_ios

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

Loading...