American International Group (AIG.NYSE, 8685.TYO) reached a deal with People’s Insurance Company (Group) of China (PICC; 1339.HKG) to set up a joint venture to sell life insurance in the mainland, Bloomberg reported. According to a statement, AIG will contribute US$4.1 million (RMB24.9 million) and People’s PICC Life Insurance will contribute US$12.25 million to the venture that will sell coverage in major Chinese cities. Setting up life insurance in China is part of AIG’s plan to regain international stature, as the company was forced to sell of most of its foreign units to repay its US taxpayer-financed bailout.
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