Thursday, October 19, 2017

Five Chinese insurers barred from financing parent companies

Five Chinese insurers have been disallowed from extending financial aid in any form to their parent companies as the government moves to curb funding for some of the nation’s aggressive asset acquirers.

Among those five are HNA Group’s Bohai Life Insurance unit, which is controlled by HNA’s Bohai Capital, headquartered in Shenzhen.

In a letter addressed to the insurer and posted on the China Insurance Regulatory Commission (CIRC) website, Bohai was asked to end or unwind any current financial transactions with its ultimate parent.

CIRC noted that it had found problems in the way the company managed its shareholders, did internal control, and in some related-party transactions based on an on-site check and assessment earlier this year.

As such, the letter said, the company is prohibited from direct or indirect transactions with HNA Group and related parties.

The move comes as China seeks to minimise risks posed by companies aggressively buying assets overseas.

Share

Related Articles

Videos

Victor Kuk, Swiss Re

Partner Content

White Papers

Follow InsuranceAsia News

Print Edition

AUTUMN 2017

Roundtable

Convergence of reinsurance and capital management