Chinese regulators have reportedly ordered Anbang Insurance Group to speed up the sale of its entire stake in a health insurance unit.
In January, reports emerged that Anbang is looking to offload its domestic insurance operations Hexie Health Insurance to Fujia Group.
Now, Anbang said it would divest around 77.7% of its stake in Hexie Health Insurance via its property and casualty insurance subsidiary.
The stake will be sold to five companies including Fujia Group, a private commerce company.
Folloiwng the completion of the deal, Fujia Group will take a 51% controlling stake in Hexie Health Insurance.
Najing Yangzi State-owned Investment Group will own a 25% stake, while the remaining stakes will be controlled by Zhuhai Da Heng Qin Investment, Jinke Properties and Liangyun Group, reported South China Morning Post.
The stake sale by Anbang reflects progress in liquidating the assets of the troubled insurer, whose control was seized by the China Insurance Regulatory Commission (CIRC) in February last year.
CIRC accused Anbang of violating laws and regulations that may seriously jeopardise the solvency of the company.
In June 2018, the Chinese government ultimately taken full ownership of struggling Anbang Insurance Group following revelation of widespread irregularities, to protect consumer interests and crack down on financial risk.
Subsequently, the Chinese authorities transferred nearly 98.23% ownership of Anbang to a government-controlled fund, China Insurance Security Fund, which had already infused nearly $9.65bn into the troubled company.
In June, China established a new insurer known as Dajia Insurance Group to take charge of Anbang’s routine operations, aimed at quickly divests its assets.