Yes, AIG has been in China for close to 100 years now. When China entered the WTO, foreign insurers were allowed to form a joint venture (with 50/50 stake) with either a privately owned company or one of the state owned enterprises. The state owned enterprises were to be completely disbanded by 2009, in which, foreign insurers could take on a wholly owned company. AIG, was the only foreign insurance company allowed to maintain a wholly owned venture, as they were grandfathered into the system
China’s model has been & continues to be state controlled capitalism.
China’s insurance scheme of joint enterprise, means that they secure
the expertise & knowledge from foreign insurers & it is doubtful that any of the insurers have recognized any profit. Only the marginal & rejects are offered to the joint ventures, with the better risks going to the state owned enterprises.
As for AIG, with their stock ownership near 80% by the US government,
we can expect over the long term, that they will do as well as Fannie, Freddie, the post office etc…
Didn’t AIG get its start in China?
Yes, AIG has been in China for close to 100 years now. When China entered the WTO, foreign insurers were allowed to form a joint venture (with 50/50 stake) with either a privately owned company or one of the state owned enterprises. The state owned enterprises were to be completely disbanded by 2009, in which, foreign insurers could take on a wholly owned company. AIG, was the only foreign insurance company allowed to maintain a wholly owned venture, as they were grandfathered into the system
China’s model has been & continues to be state controlled capitalism.
China’s insurance scheme of joint enterprise, means that they secure
the expertise & knowledge from foreign insurers & it is doubtful that any of the insurers have recognized any profit. Only the marginal & rejects are offered to the joint ventures, with the better risks going to the state owned enterprises.
As for AIG, with their stock ownership near 80% by the US government,
we can expect over the long term, that they will do as well as Fannie, Freddie, the post office etc…