Chinese Authorities Put the Squeeze on Anbang

Outside China, Anbang Insurance Group Co. has been best known for its high-profile deals. It acquired New York’s iconic Waldorf Astoria hotel, made an aborted bid for Starwood Hotels & Resorts Worldwide Inc., and in March pulled out of talks for a real estate deal with a company owned by the family of Jared Kushner. Now it’s also notable for the recent detention for questioning by the Chinese government of its chairman, Wu Xiaohui. Anbang has said Wu can’t perform his duties for personal reasons.

In its home country, Anbang has been a place to stash savings. Many of its popular insurance products were more like high-yielding investments. Think something like a U.S. certificate of deposit but riskier, with returns paid after a specific period such as one or two years. These weren’t bank accounts, but 99 percent of premium income in the company’s Anbang Life unit last year came from sales in banks. The products helped fuel Anbang’s investing.