BEIJING China’s Anbang Insurance Group Co has emerged from nearby shade 18 months ago to pointer deals value some-more than $30 billion, relocating into a large joining of tellurian genuine estate and finance.
The Beijing-based organisation has offering $12.8 billion for U.S. hotel user Starwood (HOT.N) and also concluded this month to compensate Blackstone Group (BX.N) $6.5 billion for Strategic Hotels Resorts Inc, whose 16 oppulance properties embody a Four Seasons Washington D.C.
Established in 2004 as an automotive and skill insurer by authority Wu Xiaohui, a local of China’s entrepreneurial coastal city Wenzhou, Anbang is looking to use a 1.65 trillion yuan ($253 billion) in resources to renovate into a worldwide investor.
“Anbang will have a tellurian footprint. In 10 years, Anbang will have companies on all a world’s continents,” Wu, who is 49 and married to Deng Zhuorui, a granddaughter of Chinese primogenitor Deng Xiaoping, told students during Harvard University final year.
Business associates report Wu as passionate, desirous and really ambitious. He mostly travels by private jet accompanied by a audience of assistants.
His merger plan is underpinned by an assertive office of yield-producing companies, those business associates say, saved by money from offered word products and other sources.
In Oct 2014, Anbang concluded to compensate $1.95 billion for a Waldorf Astoria Hotel in New York, a pierce Wu pronounced brought a insurer “extra code recognition” and business opportunities.
Last year, Anbang concluded to buy U.S. insurer Fidelity Guaranty Life (FGL.N) for $1.6 billion, and paid around $1 billion for South Korea’s Tong Yang Life Insurance Co (082640.KS). It has also bought control of Fidea, a Belgium formed insurer, and a Belgian banking operations of Dutch insurer Delta Lloyd. It is in talks to buy Allianz’s (ALVG.DE) South Korean operations.
At home, Anbang has a heading interest in China Minsheng Banking Corp Ltd (600016.SS)(1988.HK), a country’s biggest private lender, and is a poignant shareholder in China Vanke Co (000002.SZ)(2202.HK), a largest residential skill developer.
When he set adult Anbang, Wu enlisted a tiny consortium of private and state investors led by Shanghai Automotive Industry Group Corp, a primogenitor of a government-owned automaker that has ventures with General Motors (GM.N) and Volkswagen (VOWG.DE). State-owned China Petrochemical Corp after bought a stake.
Anbang’s strange house enclosed Levin Zhu, former CEO of China International Capital Corp and son of former premier Zhu Rongji, and Long Yongtu, China’s arch adjudicator when it assimilated a World Trade Organization. Wu also incited to Chen Xiaolu, a son of Chinese Marshal Chen Yi, for support.
Anbang binds licenses for offered property, life and health insurance, and operates an payments word business and item government arm. It doesn’t tell organisation finances, though says a resources have some-more than doubled given Dec 2014.
Two subsidiaries, Anbang Life Insurance and Anbang Annuity Insurance, lifted 49 billion yuan ($7.53 billion) in investment supports final year, especially by offered high-yielding concept life word policies.
(Reporting by Matthew Miller and Michelle Price; Editing by Ian Geoghegan)