Ping An seeks arbitration to recoup Fortis losses

Ping An Insurance (Group) Co, China's second-biggest insurer, said it is seeking international arbitration after negotiations with the Belgian government for compensation on its investment losses in Fortis failed.

"We have no alternative but to defend Ping An's rights through legal action," the Shenzhen-based company said on Tuesday. "The Belgian government's misconduct toward Fortis back in 2008 violated the legitimate rights and undermined the interests of Fortis investors."

Ping An wrote off 22.8 billion yuan ($3.6 billion) in 2008 on its investment in Brussels- and Amsterdam-based Fortis, bailed out by three European governments after what was once Belgium's biggest financial-services firm became a casualty of the global credit crunch. Fortis shareholders in 2009 approved the sale of banking units to BNP Paribas SA, a move the Chinese insurer opposed at the time saying it destroyed the company's value and impaired shareholders' interests.