Anbang to explore sale of insurer Fidea

SINGAPORE: Anbang Insurance Group Co is exploring a sale of Belgian insurer Fidea, people with knowledge of the matter said, in what would be the troubled Chinese insurer’s first European divestment since it was seized by the government.

Beijing-based Anbang has asked investment banks to pitch for a role in managing a potential sale of Fidea, according to the people, who asked not to be identified because the information is private.

It is considering starting a formal auction process as soon as the third quarter, the people said.

Fidea, formerly owned by J.C. Flowers & Co, was bought by Anbang in May 2015 for 369 million euros (US$434mil), according to the annual report that year from the Chinese company’s life-insurance arm.

Deliberations on a potential sale are at an early stage, and there’s no certainty they would lead to a transaction, the people pointed out.

Anbang shot to fame after snapping up assets around the world, before the government seized it in February for at least a year amid President Xi Jinping’s campaign to curb risks in the financial system.

The insurer’s former chairman, Wu Xiaohui, was sentenced in May to 18 years in prison after being convicted of fundraising fraud and embezzlement.