RARELY in corporate history has a giant come and gone so quickly. Anbang was founded in 2004 as a small Chinese car-insurance company. By the start of final year it ranked among the world’s biggest insurers with some $300bn of assets,including stakes in hotels and financial firms across America, Europe and Asia. Given another ten years, and boasted Wu Xiaohui,its swashbuckling founder, Anbang’s scale would “exceed your imagination”. But then, and just as vertiginous as its ascent,came its fall. Alarmed at its debt-fuelled expansion, regulators started blocking its overseas deals, or reined in its insurance commerce and detained Mr Wu. On February 23rd its shame became complete: the Chinese government announced that it had taken over Anbang and would prosecute Mr Wu for economic crimes.
The insurance regulator said it had intervened because illegal operations could enjoy “seriously endangered” the company’s solvency. It did not spell out the exact nature of Anbang’s alleged...
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Source: economist.com