In December 2012, AIG invested $500 million in the PICC initial public offering and in connection with this investment, PICC Life and AIG have agreed to form this joint venture agency distribution company.
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The joint venture company is expected to distribute jointly developed life and retirement insurance products, existing PICC life products, PICC Property & Casualty (P&C) insurance products and AIG P&C products.
AIG said that it will own 24.9% of the distribution company, with PICC Life holding the remaining 75.1% and board seats as well as management assignments will be based upon share holdings.
Commenting on the agreement, AIG president and CEO, Robert Benmosche, said: "We are delighted to enter into this joint venture with PICC Life to provide Chinese consumers life insurance and other financial products to enhance and protect their overall quality of life.
"This partnership builds on the longstanding relationship and history of cooperation between PICC and AIG to develop strategic business expansion opportunities. We are excited that our joint venture with PICC Life provides AIG with a unique opportunity to enter the Chinese life market with a well-established and respected local partner," Benmosche added.
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By GlobalDataBoth AIG and PICC Life will commence the operations of the joint venture by the first quarter of 2014.
