Evergrande Life Receives Two Penalty Notices: 28 People Held Accountable, Three Former Chairmen All Penalized

Recently, the National Financial Regulatory Administration and the Shenzhen Financial Regulatory Bureau simultaneously issued administrative penalty notices targeting multiple violations by Evergrande Life Insurance Co., Ltd., with a total of 28 related responsible persons being held accountable, including three former chairmen.

National Financial Regulatory Administration Penalty: Serious Violations in Fund Utilization, 5 People Banned

The penalty decision from the National Financial Regulatory Administration shows that Evergrande Life had serious non-compliance issues in insurance fund utilization. Regulatory authorities issued warnings to 20 people including Liang Dong, Zhu Jialin, Zeng Songbai, Chen Kunkun, and Liu Guohui, with a total fine of 2.83 million yuan. Among them, 5 core personnel were banned from the industry, including: former chairman Liang Dong (lifetime ban from the insurance industry); former chairman Zhu Jialin (5-year ban and 100,000 yuan fine); former general manager Zeng Songbai (5-year ban); former deputy general manager Chen Kunkun (10-year ban).

Shenzhen Regulatory Bureau Penalty: Violations in Shareholder Equity and Seal Management, Former Chairman Named Again

On the same day, the Shenzhen Financial Regulatory Bureau's administrative penalty decision pointed out that Evergrande Life had violations in shareholder equity and seal management. The bureau issued a warning to Evergrande Life and imposed a fine of 410,000 yuan; gave warnings to Zhao Dongmei, Liu Hao, Peng Jianjun, Zhu Jialin, Liang Dong, Zeng Zhi, Luo Song, and Peng Lingjiang, with each fined 100,000 yuan; gave a warning to Xiong Qiuqiu with a fine of 10,000 yuan. Notably, former chairman Peng Jianjun appeared on both the national and Shenzhen penalty lists.

Three Former Chairmen All Held Accountable

This penalty involves three former chairmen of Evergrande Life: Liang Dong served as chairman from March 2020 to 2023 and was permanently banned from entering the insurance industry. Zhu Jialin served as chairman from 2017 to 2019, during whose tenure Evergrande Life conducted 4.129 billion yuan in irregular mutual investments with Zhongrong Life. He was penalized by the national administration with a 5-year ban and 100,000 yuan fine. Peng Jianjun was Evergrande Life's first chairman and was penalized by the Shenzhen bureau with a warning and 100,000 yuan fine.

Evergrande Life's predecessor was Zhongxin Dadongfang Life, established in May 2006. In November 2015, Evergrande Real Estate Group and its affiliates spent approximately 3.939 billion yuan to acquire a 50% stake and renamed it Evergrande Life. After Evergrande Group's debt crisis erupted in 2021, Evergrande Life's operations and financial condition deteriorated.

In September 2023, the National Financial Regulatory Administration approved Harbor Life Insurance Co., Ltd. to take over Evergrande Life's insurance business, assets, and liabilities. Currently, Evergrande Life is still advancing subsequent disposal work under regulatory guidance.