22 November 2012

AIG to establish JV with PICC Group and PICC Life to distribute life insurance in China

- AIG to subscribe for US$500 mn of PICC Group shares in its IPO 
AIG currently owns approx. 9.9% of PICC Property and Casualty 

New York – 21 November 2012 (BUSINESS WIRE) - American International Group, Inc. (AIG), The People’s Insurance Company (Group) of China Limited (PICC Group) and PICC Life Insurance Company Limited (PICC Life) entered into a non-binding term sheet with respect to the proposed establishment of a joint venture insurance agency company between AIG and PICC Life that plans to distribute life insurance and other insurance products through a specialized agency force on a nationwide basis with a focus on major cities in China and to engage in reinsurance and other related business cooperation. 

In addition, AIG has agreed to subscribe for approximately US$500 million worth of H shares of PICC Group in its initial public offering in Hong Kong. AIG has agreed not to dispose of more than 25 percent of such shares without PICC Group’s prior consent for a period of five years, except that AIG will be permitted to sell all of its H shares without such consent after six months if definitive legal documentation for the proposed Joint Venture has not been executed by May 31, 2013 or upon the occurrence of certain events in connection with the proposed Joint Venture. 

AIG currently owns approximately 9.9 percent of PICC Property and Casualty Company Limited, a subsidiary of the PICC Group with publicly listed shares in Hong Kong. 

American International Group, Inc. (AIG) is a leading international insurance organization serving customers in more than 130 countries and jurisdictions. 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. 

Source: American International Group, Inc.