20 Executives Including Three Former Chairmen of Evergrande Life Insurance Penalized for Insurance Fund Misuse and Benefit Transfers

Deep News09-12

On September 12, penalty notices disclosed by the National Administration of Financial Regulation showed that 20 relevant personnel from Evergrande Life Insurance Company Limited were penalized.

According to the penalty causes, the notices revealed that relevant personnel at Evergrande Life Insurance engaged in violations including serious non-compliance in insurance fund utilization, transferring benefits to related parties, non-compliant post-investment management, and false records in submitted reports and statements.

The National Administration of Financial Regulation issued warnings and imposed fines totaling 2.825 million yuan on Liang Dong, Zhu Jialin, Zeng Songbai, Chen Kun, Liu Guohui, Wang Shouxiang, Fang Yuanfu, Zhang Xinrong, Mo Yongguang, Chen Lida, Luo Song, Peng Jianjun, Jiang Jinfeng, Hu Feng, Xu Xiaoguang, Chen Min, Zhao Hongtao, Liu Quzhang, Zhang Yan, and Wang Xu.

Simultaneously, the financial regulator also imposed a lifetime ban from the insurance industry on Liang Dong, a 10-year industry ban on Chen Kun, and 5-year industry bans on Zhu Jialin, Zeng Songbai, and Liu Guohui.

Among these individuals, Liang Dong served as Chairman of Evergrande Life Insurance, Zhu Jialin previously served as Chairman and Vice Chairman of Evergrande Life Insurance, Peng Jianjun also previously served as Chairman of Evergrande Life Insurance, Zeng Songbai served as General Manager of Evergrande Life Insurance, and Chen Kun previously served as Deputy General Manager and Chief Investment Officer of Evergrande Life Insurance.

Evergrande Life Insurance was established on May 11, 2006, with Evergrande Group (Nanchang) Co., Ltd. holding a 50% stake, while Great Eastern Life Assurance Co. Ltd. Singapore and Chongqing Caixin Enterprise Group Co., Ltd. each hold 25% stakes.

In September 2023, officials from Shenzhen's financial regulatory bureau stated that Evergrande Life Insurance was severely insolvent. In accordance with the Insurance Law of the People's Republic of China and relevant regulatory provisions, regulatory authorities had implemented close supervision and conducted risk disposal. The company's operations remained stable at that time. Haigang Life Insurance Co., Ltd., jointly established by China Insurance Security Fund Co., Ltd., state-owned enterprises from Guangdong Province, Shenzhen City, and Chongqing City, along with Taiping Life Insurance Co., Ltd., had commenced operations and legally acquired Evergrande Life Insurance's assets and liabilities, taking over institutional networks and personnel to fully fulfill insurance contract obligations and effectively protect the legitimate rights and interests of insurance consumers and all relevant parties.

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