AIG to Invest $92.5M in China P/C Insurer

May 20, 2013

American International Group Inc. (AIG), which sold much of its stake in the Asian insurer AIA Group several years ago to help pay back the federal government for its bailout, is moving to reinvest in Asia. AIG announced it has agreed to invest approximately $92.5 million (HK$718.1 million) in a rights offering of the Chinese insurance company, PICC Property and Casualty Co.

The company, a subsidiary of The People’s Insurance Company of China Ltd., is listed in Hong Kong.

AIG said that it will own 9.9 percent of shares in PICC P&C after the offering.

PICC Property and Casualty Co. operates in various property/casualty lines including motor vehicles, commercial properties, cargo, homeowners, marine hull, agriculture, aviation and energy.