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Mergers & Acquisitions

Anbang prepares second bid to buy US insurer Fidelity & Guaranty Life

Anbang withdrew application from the New York finance regulator on Monday.

PUBLISHED : Thursday, 02 June, 2016, 11:11am
UPDATED : Thursday, 02 June, 2016, 11:11am

Anbang Insurance will try a second time to buy annuities and life insurer Fidelity & Guaranty Life with a refiled acquisition application to the New York regulator, a source with knowledge of the deal told the South China Morning Post on Thursday morning.

“Anbang will continue to work with Fidelity & Guaranty Life to complete the deal,” the source said, without detailing the time table.

Foreign media reported on Wednesday that Anbang was to put on hold its purchase of Fidelity & Guaranty Life after the New York finance regulator sought more detailed information about the Chinese company’s funding and shareholder structure.

Anbang had agreed to buy Fidelity for US$1.57 billion in November, Reuters reported.

On March 31, Anbang pulled out from a US$14 billion bid to acquire Starwood Hotels & Resorts, a move possibly triggered after China’s insurance regulator stepped in and questioned Anbang’s ability to control the risk involved with an investment of that size.