American International Group Inc. reached a deal with People’s Insurance Company Group of China Ltd. for a joint venture to sell life insurance in China.
AIG will contribute 24.9 million yuan ($4.1 million) and People’s PICC Life Insurance Co. unit will contribute 75.1 million yuan to create a joint venture to sell life coverage in major Chinese cities, the Beijing-based parent company said today in a statement.
AIG Chief Executive Officer Robert Benmosche is working to rebuild sales outside the U.S. after the New York-based insurer sold foreign units to help repay a U.S. bailout. AIG took a $500 million stake in PICC’s property-casualty unit last year in a bet on the world’s most populous nation.
“We’re going to put a concerted effort to start reestablishing AIG throughout the world with our life-insurance products,” Benmosche told Bloomberg Television in February.
AIG also recently announced it had 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.