UPDATE 1-AIG wins China approval for provincial expansion http://today.reuters.com/business/newsArticle.aspx?type=bankingFinancial&storyID=nN15294696
Monday 15 May 2006
(Recasts, updates with AIG quotes and background)
NEW YORK, May 15 (Reuters) - American International Group Inc. (AIG.N: Quote, Profile, Research) , the world's biggest insurer, said on Monday it received approval to expand in two Chinese provinces.
AIG's life and general insurance subsidiaries have been cleared to sell both life and property casualty coverage in Guangdong province, while its life insurance unit has also been approved by regulators throughout Jiangsu province.
The approvals enable branches of the two AIG subsidiaries to expand in the provinces, with populations of 91 million people and 74 million people respectively, New York-based AIG said. They are two of the top three Chinese provinces in terms of total economic activity, AIG said.
"These approvals will lead to a much larger sales base for AIG companies in China," said AIG Senior Vice Chairman Edmund Tse.
An AIG subsidiary was the first foreign insurer to receive a license to operate an insurance business in China in 1992. Unlike other foreign insurers that have partnered with Chinese carriers, AIG has its own license to do business in China, a legacy of former AIG Chief Executive Maurice "Hank" Greenberg's relationships with Chinese officials.
"AIG has courted mainland China for a long, long time," said insurance analyst Donald Light of Celent LLC. "This represents a culmination of an extended effort and a big, important opportunity."
In addition to life and property casualty, AIG provides asset management and services such as aircraft leasing. It is the world's largest insurer by market value.
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