China regulator approves $9.7 billion injection for Anbang

People enter the office of Anbang Insurance Group in Beijing, China, February 23, 2018. REUTERS/Thomas Peter

SHANGHAI (Reuters) - China’s banking and insurance regulator has approved a 60.8 billion yuan ($9.67 billion) capital injection for Anbang Insurance Group Co Ltd, a government work group said on Wednesday in a statement on the insurer’s website.

The plan comes after the government seized control of Anbang in February and said its chairman had been prosecuted, highlighting Beijing’s willingness to curb acquisitive conglomerates as it moves forward with a campaign against risk.

The money will come from a non-government bailout insurance security fund for the insurance industry which will temporarily take a stake in Anbang during the restructuring of its shareholding, the government work group said in Wednesday’s statement.

The insurer will start the selection of new private strategic investors as the capital injection takes place, the work group said.

Large private companies in elderly care, healthcare and fintech are welcome to take part in the restructuring, it said.

Anbang’s current registered capital remains at 61.9 billion yuan.

Reporting by David Lin and Engen Tham in Shanghai and Shu Zhang in Beijing; Editing by Stephen Coates