Sunday, July 23, 2017

Anbang sues former owners of Tongyang Life

Chinese insurance giant Anbang Group has accused previous Korean owners of stakes in Korea’s Tongyang Life Insurance of hiding risks in what was then the country’s eighth-largest life insurer.

Anbang filed a countersuit against five Korean firms, including Yuanta Securities Korea, local private equity firm VIG Partners and Atinum Partners chairman Lee Min-joo, all of which had sold their stakes to Anbang in 2015.

Anbang filed the countersuit with the ICC International Court of Arbitration based in Hong Kong, demanding W698 billion (US$612 million) in compensation.

Anbang claimed the Korean firms failed to warn it of risks in Tongyang Life, especially its involvement in a meat loan fraud that cost the insurer about W380 billion.

An official from VIG Partners, however, said debt exposure of Tongyang Life was properly disclosed.

Anbang Group acquired a combined 63.01% stake in Tongyang Life for W1.13 trillion in February 2015.

 

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