China orders three insurers to fix overseas investment rule breaches

[February 24, 2018]   BEIJING (Reuters) - China's insurance regulator said on Saturday it would force three major insurers to take steps to deal with overseas investments that had violated regulations, as Beijing intensifies its crackdown on risk in the insurance sector.

In three separate statements, the China Insurance Regulatory Commission (CIRC) said investments abroad by Ping An Insurance (Group) Co of China <601318.SS>, New China Life Insurance <601336.SS> and China Re Asset Management Co had broken official rules published in 2012.

It did not elaborate on the wrongdoings.

The orders came after the government on Friday seized control of Anbang Insurance Group Co Ltd [ANBANG.UL] and said its chairman had been prosecuted.

Chinese insurers are allowed to make investments in 25 developed markets, including the United States and Singapore, as well as 20 emerging markets such as Brazil and Indonesia, state media Xinhua said in a report, citing CIRC rules on overseas investment of insurance funds.

 Company logo of Ping An Insurance Group is shown at a news conference following the company's announcement of its annual results in Hong Kong, China March 16, 2016. REUTERS/Bobby Yip/File Photo

The firms must make the necessary adjustments and report their changes within a month, the CIRC said in the statements.

The three companies could not be reached for comment by email and phone due to the late hour.

(Reporting by Pei Li and Josephine Mason; Editing by Mark Potter)

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