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 292nd 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.

© 2009 - 2019 All Rights Reserved International Private Medical Insurance (IPMI) Magazine - Get On The Inside Track Of Global Healthcare - Stay 1 Step Ahead Of The Risk. https://ipmimagazine.com