Anbang set to buy US insurer Fidelity

Beijing-based Anbang Insurance Group Co is to buy the United States-based life insurer Fidelity & Guaranty Life Co for about $1.57 billion as part of its overseas expansion plans.

The Chinese firm will pay $26.80 for every Fidelity share and the acquisition, when complete, will make Anbang one of the largest insurers by market share in fixed annuity products in the US, according to the company. Financial holding company HRG Group Inc is Fidelity & Guaranty Life's major stockholder.

"This transaction will bring value to customers of both Anbang and FGL," Anbang said in a statement. It said that the acquisition is consistent with Anbang's investment strategy, "which is focused on globalization".