CIRC confirms China Life, AIG talks

The China Insurance Regulatory Commission (CIRC) has confirmed that China Life is in talks with AIG over the possible purchase of some of the troubled US insurer’s Asian assets, the Financial Times reported. The official who confirmed the talks, Li Kemu, vice chairman of the CIRC, added that American International Assurance’s (AIA) China and Hong Kong assets were "pretty good." However, people familiar with the situation do not expect China Life to bid for AIA when the first-round deadline expires on Friday. It is thought AIG would prefer to sell AIA in its entirety rather than piece by piece. The company hopes to raise up to US$20 billion through the sale. Britain’s Prudential, Canada’s Manulife Financial and Singapore’s Temasek are expected to make first-round bids for AIA. Bank of China’s interest in the company has waned.