New China Life Insurance Co., the nation's fourth-largest life insurer, is being probed for alleged misuse of funds, as the Chinese government widens a crackdown on financial misdemeanors.
"Investigations into New China Life's financial affairs are routine,'' said the China Insurance Regulatory Commission's vice chairman Li Kemu, confirming that the Beijing-based insurer is under probes. New China Life's chairman Guan Guoliang "has not been removed from his post,'' Li said in Beijing.
Guan was replaced by New China Life's general manager Sun Bing, pending an investigation by the insurance regulator for allegedly misusing as much as 800 million Yuan ($101.5 million) of the insurer's funds.
Guan acted as guarantor to loans to three companies, including 500 million yuan to Beijing Chengzhong Mansion Real Estate Co. that was not disclosed in the insurer's annual report.
Guan confirmed that he's being investigated, adding that the probes are "routine.''. "I'm still working in the office everyday'' and "am attending all the board meetings as other board members,'' Guan said today. He said on Oct. 31 that his replacement by Sun was a "normal division of labor.''
New China Life was formed in 1996 with 500 million Yuan of capital. Its shareholders are government-controlled companies investment firms, including the country's biggest steel mill Baoshan Iron & Steel Co., Sinopec Jinling Petrochemical Corp. and Jinzhou Harbour Bureau.
The insurer sold a 25 percent stake for $100 million in January 2001 to Zurich Financial Services AG, the World Bank and two insurance firms, as China lowered foreign investment barriers before joining the World Trade Organization.
Zurich Financial, Switzerland's biggest insurer, paid $39 million for 10 percent of New China Life. The World Bank's International Finance Corp. unit invested $23.5 million in the Chinese insurer, nearly doubling its worldwide insurance exposure and will act as an honest broker between the foreign companies and Chinese regulators.
Japan's Meiji Life Insurance Co. and Netherlands Development Finance Co. owned the remainder of the shares.
Source:佚名