Deals
AIG Exits PICC Group Stake With a Whimper Rather Than a Bang
- New York-based insurer made $8.6 million profit from sale
- Exit will remove overhang on PICC’s Hong Kong-traded shares
Photographer: Keith Bedford/Bloomberg
This article is for subscribers only.
American International Group Inc. bought into The People’s Insurance Co. (Group) of China Ltd. as a cornerstone investor in its initial public offering more than six years ago.
Since that time -- early December 2012 -- Hong Kong’s benchmark Hang Seng Index has generated a total return of about 60 percent, while the S&P 500 Index has paid a very healthy 125 percent. AIG sold its PICC Group stake Thursday, and came out 1.75 percent ahead with a profit of HK$67.8 million ($8.6 million), including the dividends it received, Bloomberg calculations show.