AIG to take 9.9% stake in PICC

AIG to take 9.9% stake in PICC

HONG KONG: American International Group (AIG) said on Friday it plans to buy 9.9 percent of China's largest non-life insurer, PICC Property and Casualty, in a move that will give the U.S. giant early access to China's accident and health insurance market.

AIG disclosed the plan following an announcement that it had reached a technical and cooperation agreement with parent PICC Holding Company.

Under the agreement, PICC Property and Casualty is expected to reinsure certain accident and supplemental health insurance risks in China with AIG subsidiaries -- a move that will give the U.S. company access to the huge mainland Chinese market ahead of other foreign players.

Other foreign insurers need to wait until the end of the year before they can enter China's accident and health insurance market, according to a phased opening plan agreed under China's World Trade Organization (WTO) commitments. --AFP