NEW YORK & BEIJING--(BUSINESS WIRE)--May. 29, 2013--
American International Group, Inc. (NYSE: AIG), People’s Insurance
Company (Group) of China (“PICC”) and PICC Life Insurance Company
Limited (“PICC Life”) announced today that they have entered into a
joint venture agreement to form an agency distribution company in China.
In December 2012, AIG invested US$500 million as the largest cornerstone
investor in the PICC initial public offering. In connection with this
investment, PICC Life and AIG agreed to form this joint venture agency
distribution company. Products under consideration to be distributed by
the joint venture company include jointly developed life and retirement
insurance products, existing PICC life products, PICC Property &
Casualty (P&C) insurance products, AIG P&C products, as well as other
products aimed at meeting the needs of this developing market.
AIG will own 24.9% of the distribution company, with PICC Life holding
the remaining 75.1%. Board seats as well as management assignments will
be based upon share holdings.
“We are delighted to enter into this joint venture with PICC Life to
provide Chinese consumers life insurance and other financial products to
enhance and protect their overall quality of life," said Robert H.
Benmosche, President and Chief Executive Officer of AIG. "This
partnership builds on the longstanding relationship and history of
cooperation between PICC and AIG to develop strategic business expansion
opportunities. We are excited that our joint venture with PICC Life
provides AIG with a unique opportunity to enter the Chinese life market
with a well-established and respected local partner.”
“Chinese consumers are changing the way they want to purchase and
utilize insurance products throughout their lifetimes, and we are
confident that this joint venture will be a leader in helping these
consumers achieve this goal,” said Chairman Wu Yan of PICC. “As China’s
oldest insurance service group with a longstanding relationship with
AIG, we are very much looking forward to growing our offerings and
achieving our latest milestone in serving new and existing customers
across the country.”
AIG and PICC Life plan to commence operations of the joint venture by
the first quarter of 2014. The exact timeline is subject to regulatory
approval. Founded in 1949, PICC is the largest insurance company in
China. In 2012, it ranked 292nd in the 2012 edition of the
Global 500 published by Fortune magazine, with total annual revenue of
PICC is an investment holding company. The Company operates its P&C
insurance business in the People’s Republic of China through PICC
Property and Casualty Company Limited, which currently has the largest
market share in the country. PICC operates its life and health insurance
businesses through PICC Life and PICC Health Insurance Company Limited
(“PICC Health”). As a full service financial group, the company also has
operations in the areas of asset management, investment management,
funds, trusts, and other specialties.
American International Group, Inc. is a leading international insurance
organization serving customers in more than 130 countries. AIG Insurance
Company China Limited is a wholly owned subsidiary of AIG with
headquarters in Shanghai. It is the largest foreign-funded P&C insurer
with the longest history in China.
This press release contains “forward-looking statements” within the
meaning of the Private Securities Litigation Reform Act of 1995. These
forward-looking statements are not historical facts but instead
represent only AIG’s belief regarding future events, many of which, by
their nature, are inherently uncertain and outside AIG’s control. Except
for AIG’s ongoing obligation to disclose material information as
required by federal securities laws, AIG is not under any obligation
(and expressly disclaims any obligation) to update or alter any
projections, goals, assumptions, or other statements, whether written or
oral, that may be made from time to time, whether as a result of new
information, future events or otherwise.
American International Group, Inc. (AIG) is a leading international
insurance organization serving customers in more than 130 countries. AIG
companies serve commercial, institutional, and individual customers
through one of the most extensive worldwide property-casualty networks
of any insurer. In addition, AIG companies are leading providers of life
insurance and retirement services in the United States. AIG common stock
is listed on the New York Stock Exchange and the Tokyo Stock Exchange.
Additional information about AIG can be found at www.aig.com
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AIG is the marketing name for the worldwide property-casualty, life and
retirement, and general insurance operations of American International
Group, Inc. For additional information, please visit our website at www.aig.com.
All products and services are written or provided by subsidiaries or
affiliates of American International Group, Inc. Products or services
may not be available in all jurisdictions, and coverage is subject to
actual policy language. Non-insurance products and services may be
provided by independent third parties. Certain property-casualty
coverages may be provided by a surplus lines insurer. Surplus lines
insurers do not generally participate in state guaranty funds, and
insureds are therefore not protected by such funds.
Source: American International Group, Inc.
Jon Diat, 917-239-9241
Joblin, + (65) 9017 1445