AIG subsidiary AIU Insurance Company has been granted approval by the China Insurance Regulatory Commission to establish a wholly owned subsidiary in China, which will be named AIG General Insurance Company China Limited.

In accordance with China Insurance Regulatory Commission (CIRC) and other government requirements, AIG General Insurance Company China Limited (AIG General) will be headquartered in Shanghai, and the existing AIU branches in Shanghai, Guangdong and Shenzhen will be consolidated into AIG General.

The subsidiary license and subsequent branch conversion will permit AIG General to expand its general insurance capabilities, achieve operational and capital efficiencies and, with regulatory approval, provide a platform to establish new branches in other areas of China over time.

The license is a significant milestone for AIG and further strengthens our commitment to China, commented AIG president and CEO Martin Sullivan. As the world’s fastest growing economy, China continues to present great potential for AIG. We look forward to contributing to the economic growth and success of this market where AIG has had a long history.

General insurance is an important part of AIG’s business in China. With the establishment of AIG General, we will be able to make more contributions to the development of the non-life insurance market in China, added Olin Wethington, chairman of AIG companies in China.