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