Regulator takes control of Anbang

Private ownership of insurance conglomerate to be maintained

Chinese regulators took control of Anbang Insurance Group, a private Chinese conglomerate best known for acquiring the Waldorf Astoria hotel in New York, on Friday as its former chairman, Wu Xiaohui, is being prosecuted for economic crimes.

The China Insurance Regulatory Commission, the country's top insurance regulator, said in a statement that Anbang's business operations has violated regulations and laws, which could "seriously endanger" its solvency. Because of that, the regulator took over the insurer for one year to ensure normal business operations and to safeguard the interests of insurance consumers, the statement said.