American International Group says its subsidiary AIU Insurance Company has been granted approval by the China Insurance Regulatory Commission to establish a wholly owned subsidiary in China.
The new subsidiary, or Wholly Owned Foreign Enterprise, will be named AIG General Insurance Company China Limited. In accordance with CIRC and other government requirements, AIG General will be headquartered in Shanghai, China, and the existing AIU branches in Shanghai, Guangdong and Shenzhen will be consolidated into AIG General. The subsidiary license and subsequent branch conversion will permit AIG General to expand its general insurance capabilities, achieve operational and capital efficiencies, and, with regulatory approval, provide a platform to establish new branches in other areas of China over time.
"The license is a significant milestone for AIG and further strengthens our commitment to China," commented AIG President and CEO Martin J. Sullivan. "As the world's fastest growing economy, China continues to present great potential for AIG. We look forward to contributing to the economic growth and success of this market where AIG has had a long history, dating back to 1919, and where it became the first foreign insurance organization to receive a license to operate in 1992."