AIG Signs Joint Venture Agreement with PICC Life to Form an Agency
Distribution Company in China
NEW YORK & BEIJING -- 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 292^nd 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.
Additional information about AIG can be found at www.aig.com | YouTube:
www.youtube.com/aig |Twitter: @AIG_LatestNews | LinkedIn:
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.
Jon Diat, 917-239-9241
Peter Joblin, + (65) 9017 1445
Liz Werner, 212-770-7074
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