Ping An files arbitration claim against Brussels over investment loss in Fortis

Ping An Insurance (Group), the country's second-biggest insurer, has filed an international arbitration claim against the Belgian government in an attempt to recover losses from investments in what was once the European country's largest financial services group, Fortis.

Ping An yesterday confirmed the claim had been made, after it was first reported by the International Arbitration Reporter news service.

A spokesman for Ping An told the South China Morning Post that the insurer had tried to negotiate compensation for investment losses with Brussels through different channels but failed to come to an agreement.

"The Belgian government's misconduct towards Fortis in 2008 violated the legitimate rights and undermined the interests of Fortis' investors. We have no alternative but to defend Ping An's rights through legal action," the spokesman said.

No details about the compensation claim were disclosed.

Ping An wrote off about 95 per cent or 22.8 billion yuan (HK$28 billion) of its investment in Fortis, when the lender was bailed out by three European governments after it was caught in the financial crisis. At the time, Ping An was the largest shareholder in Fortis and rejected the state-organised break-up of Fortis at a shareholders' meeting.