Chinese regulators will take over Anbang Insurance Group Co, a private insurance conglomerate, as its former chairman Wu Xiaohui has been prosecuted for economic crimes, the China Insurance Regulatory Commission said on Friday.

The CIRC, the country's top insurance regulator, said in a statement that Anbang's business operation has violated regulations and laws, which could "seriously endanger" its solvency abilities and therefore the regulator has decided to take over the insurer for one year to ensure its normal business operation and to safeguard the interest of insurance customers.

The takeover, starting on Friday, will be carried out by a working team established by the CIRC and with members from the Chinese central bank as well as the banking, securities and foreign-exchange regulators, according to the statement.

Anbang's external liabilities will not be affected during the takeover period, and its business will be operated as usual in accordance with law, the CIRC said.

In addition, the regulators will actively introduce good-quality private capital to complete Anbang's share-restructuring and will ensure its private ownership, according to the statement.

The No 1 Branch of Shanghai Prosecution Service has initiated the prosecution against Wu on charges of illegal fundraising and embezzlement, according to a statement by the prosecutor.

Anbang, known for a string of high-profile overseas acquisitions, including its purchase of New York's famed Waldorf Astoria hotel, has been investigated by the regulator since last June.

The regulator has dispatched an inspection team into the company and found it involved in illegal operation. The regulator has ordered the insurer to improve its operation and management, and Wu was removed from the position as the group's chairman.

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