China's insurance regulators are planning to investigate Anbang Insurance Group Co. following its recent real estate shopping spree in the United States.

China's Insurance Regulatory Commission (CIRC) is putting up a team to examine Anbang's business model, a source told Bloomberg. The initiative comes after the company made the headlines by acquiring business properties overseas over the last two years.

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Anbang was involved in a $14 billion bidding war against Marriott Hotels to purchase Starwood Hotels & Resorts Worldwide Inc. The company has also acquired prominent US establishments such New York's Waldorf Astoria and Blackstone's Strategic Hotels and Resorts Inc.

Last week, CIRC announced that it will implement stricter supervision for insurance companies' real estate and private equity investments.

Anbang, on the other hand, has revealed that it has not received any notification from the agency. At the moment, it is unclear which part of Anbang's business the agency plans to look into.

Earlier this month, Sino Life Insurance Co. came under the spotlight of regulators after CIRC received a letter about an alleged asset transfer by senior management. When probed about the report, the company refused to give any comment.

Meanwhile, Caixin noted on Monday that Anbang's case differs from Sino Life, as regulators fear that insurance companies' concentration on illiquid assets such as real estate might end up in a liquidity mismatch. This means the company might have difficulties paying investors and policyholders in case of a capital run, according to the Real Deal.

In March, Anbang was involved in a bidding war with Marriott Hotel for Starwood Hotels & Resorts Worldwide Inc. However, the insurer dropped its $14 billion bid because of "market consideration."

"Anbang has both the interest and the financial resources to do a deal of this size and more, but only at the right terms that make long-term financial sense," Fred Hu, Primavera chairman, told Reuters.

TagsAnbang, China insurance regulatory commission, blackstone, Strategic Hotels & Resorts Inc., Sino Life Insurance, insurance company