Press release from Business Wire
AIG Signs Joint Venture Agreement with PICC Life to Form an Agency Distribution Company in China
Wednesday, May 29, 2013
AIG Signs Joint Venture Agreement with PICC Life to Form an Agency Distribution Company in China22:30 EDT Wednesday, May 29, 2013
NEW YORK & BEIJING (Business Wire) -- 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 US$36.5 billion.
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.
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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.
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