Insurer linked to struggling Tomorrow Holdings in China seeks strategic investors

BEIJING, July 20 (Reuters)Yi An Property and Casualty Insurance, a small Chinese insurer previously controlled by Tomorrow Holdings, said on Wednesday it was looking for strategic investors to help with its bankruptcy and reorganization process.

Priority will be given to large and medium-sized financial institutions, Yi An P&C Insurance said in a post on the National Enterprise Bankruptcy Information Disclosure Platform, an official bankruptcy data website.

Yi An is one of nine financial firms affiliated with Tomorrow Holdings, which came under fire during a government crackdown on systemic risks posed by financial conglomerates a few years ago.

Chinese authorities took over its affiliated financial companies in July 2020 and extended official control over the companies until July 2022.

Yi An was the first of the seized companies to announce its restructuring plan, offering a possible roadmap for other companies.

An eligible consortium of investors in Yi An should have no more than five members, and large and medium-sized financial institutions should be the main source of investment, according to the post.

Strategic investors should have sufficient capital and prudent risk management capabilities to offer resources and support for the healthy development of the company, according to Yi An.

The requirements are partly intended to defuse risk, the company said.

(Reporting by Ella Cao and Ryan Woo; Editing by Bradley Perrett)

((Ella.Cao@thomsonreuters.com;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.