|AIG CHAIRMAN GREENBERG ISSUES STATEMENT ON COMPANY'S CHINA BUSINESS|
NEW YORK, December 20, 1999 - AIG Chairman M.R. Greenberg has issued the following statement in response to press reports alleging problems with respect to the company's life insurance business in China:|
"All policies issued by AIG's American International Assurance Company, Ltd. (AIA) in China were approved before being sold by the People's Bank of China (PBOC), the predecessor regulatory organization to the current regulator, the China Insurance Regulatory Commission (CIRC). One of the policies approved by the PBOC was designed to be marketed to employees of companies in China.
"More recently, the CIRC changed the regulations with respect to such sales, noting that it considered them group insurance, and requested AIA to cease selling in this manner. AIA complied with the CIRC's request. No penalty was imposed on AIA, and all prior such sales were allowed to remain in place.
"This matter is several months old, and, as a practical matter, the business in question accounts for less than 3.5 percent of AIA's overall current year China life insurance premiums. AIG has an excellent relationship with the CIRC. Our current business in China is uninterrupted and this matter will not affect AIA's growth plans for the future. We do not believe the unnamed sources quoted in certain press articles are AIA executives with knowledge of our business in China nor our relationships with the CIRC. Specifically, the statement from one unnamed source that this matter represents a major problem for AIG or that it will impact our growth in China is false."
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