The China Insurance Regulatory Commission (CIRC) has announced that the Chinese government has seized control of Anbang Insurance Group.

In an announcement regarding the seizure, the CIRC said Anbang had violated laws and regulations which “may seriously endanger the solvency of the company”, adding that it had seized the company in a bid to “maintain the normal operation of Anbang Group and protect the legitimate rights and interests of consumers”.

The regulator added that Anbang chairman Wu Xiaohui has been prosecuted for alleged "economic crimes."

“Since June 2017, the CIRC has sent a working group to Anbang Group to conduct in-depth inspections, strengthen on-site supervision and urge the company to improve its operation and management according to the regulatory arrangements,” the regulator said.

“At present, the operations of Anbang Group are generally stable and their operations are basically stable. The legitimate rights and interests of consumers and stakeholders are effectively protected,” it added.

During the government takeover of Anbang Group, which will last for one year starting from 23 February, the company will be managed by a team of officials from the CIRC, the central bank and other key financial regulators and government bodies.

The regulator said that the company would remain a private enterprise, stating that the takeover team would concentrate on introducing “high-quality social capital” and completing an equity restructuring. However, Anbang's debts and obligations will not be impacted.