|AIG MEMBER COMPANY TO PURCHASE SEVENTY PERCENT OF LIPPO LIFE SUBSIDIARY, CREATING JOINT VENTURE LIFE INSURANCE COMPANY IN INDONESIA|
NEW YORK, December 17, 1999 - American International Group, Inc. (AIG) and PT Asuransi Lippo Life Tbk. (Lippo Life) have announced that an AIG member company has entered into an agreement to purchase a 70 percent equity interest in PT Asuransi Jiwa Lippo Utama. PT Asuransi Jiwa Lippo Utama is a subsidiary of Lippo Life and is Indonesia's leading life insurance company.
With the purchase, PT Asuransi Jiwa Lippo Utama will become a joint venture that will be re-named PT Asuransi AIG Lippo Life (AIG Lippo Life). The joint venture company will market life, pension and health products to Indonesians through a multi-channel distribution network. AIG Lippo Life will continue to serve its customers through 220 sales offices, including 160 shops in PT Bank Lippo Tbk (Lippo Bank), Lippo Financial Centers, Matahari department stores, supermarkets, post offices and recreation centers, with its 10,000 strong agency and sales force in 60 cities throughout Indonesia.
Edmund Tse, AIG Vice Chairman, Life Insurance, said, "This investment in AIG Lippo Life significantly strengthens AIG's life insurance presence in Indonesia. The market leadership of The Lippo Group, combined with AIG's insurance expertise and global franchise, will create a synergy that will position AIG Lippo Life for success in the growing Indonesian life insurance market."
AIG's existing life insurance operations in Indonesia, conducted through American International Assurance Company (Indonesia), Ltd., will continue to operate and will not be consolidated into the new joint venture.
James T. Riady, Lippo's Deputy Chairman, said, " The partnership with AIG will reinforce our leading market position in the Indonesian life insurance market. The joint venture company will be able to draw on AIG's considerable strengths and leverage Lippo's extensive retail distribution platform to successfully increase the penetration of the recovering Indonesian market."
AIG is the leading U.S.-based international insurance organization and the largest underwriter of commercial and industrial insurance in the United States. Its member companies write property, casualty, marine, life and financial lines insurance in approximately 130 countries and jurisdictions, and are engaged in a range of financial services and investment management businesses. American International Group, Inc.'s common stock is listed on the New York Stock Exchange, as well as the stock exchanges in London, Paris, Switzerland and Tokyo.