Long Prison Term for Anbang Founder
Anbang Insurance’s founder and former chairman Wu Xiaohui in May 2018 was sentenced to 18 years in prison after being convicted of fraud in fundraising and of embezzlement by the Shanghai No. 1 Intermediate People’s Court.
Anbang’s fast growth was driven by high-yield, investment-type insurance products with redemption options. Its asset management practices may have resulted in a duration mismatch between assets and liabilities.
Wu in June 2017 was detained by authorities and the Chinese regulator took control of Anbang in February 2018.