American International Group plans to further expand its already extensive activities in China by Buying a 9.9 percent stake in PICC Property & Casualty Co., the country’s largest general insurer with a 70 percent market share.
AIG will reportedly take on a co-operative role in expanding accident insurance coverage and supplementary health insurance through an agreement to reinsure the policies with various AIG subsidiaries.
The cost of the acquisition will be determined by the price set for IPCC shares when they go on sale in Hong Kong pursuant to an initial public offering planned for November. The company hopes to raise up to $700 million from the sale. It’s estimated that AIG will acquire approximately one-third of the 2.4 billion shares to be offered.
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