AIG granted life-assurance licence in Serbia
BELGRADE, Aug 8 (Reuters) - Serbia's central bank has granted a greenfield licence to the world largest insurer, American International Group Inc. (AIG.N), for life-assurance operations in Serbia, the bank said in a statement on Friday.
"This investment in the Serbian insurance sector is expected to strongly contribute to the development of life assurance and strengthening of the activities of domestic insurance companies," the bank said.
The company will operate under the name of AIG Life Osiguranje and will be based in Belgrade, said the National Bank of Serbia, which supervises the financial sector.
The announcement came a day after AIG disclosed its third consecutive quarterly loss greater than $5 billion as it wrote down bad mortgage-related investments, sending its shares to their lowest in more than two decades.
AIG shares traded at $23.94 at 1453 GMT.
Serbia's insurance sector is dominated by foreign insurers, with 15 of its 21 insurers from coming from outside.
Gross written premiums for the market rose 17.9 percent year-on-year to $261 million at the end of the first quarter of 2008. Life-assurance business accounted for 7.9 percent of the market, posting a 54 percent increase.
Gross written premiums stood at nearly $800 million at the end of 2007. (Reporting by Gordana Filipovic, editing by Will Waterman)
