China in auto power play
It might not shake up the industry just yet, but China's interest in Volvo and Saab is the start of something big in global autos, writes columnist Wei Gu. Commentary
China fund in talks for stake in AIG unit: report
NEW YORK (Reuters) - A consortium led by sovereign wealth fund China Investment Corp is in talks to buy a stake of up to 49 percent in American Life Insurance Co, a unit of U.S. insurance company American International Group (AIG.N), the Nikkei financial daily reported.
Citing sources familiar with the matter, Nikkei reported on its website that AIG was holding preferential talks with the CIC-led consortium, which includes Chinese insurance companies, with a year-end deadline.
The report said a deal could open the way for China to become a major player in the global insurance market. It said American Life Insurance Co (Alico) has operations in more than 55 countries, including Japan.
The report said AIG was said to be considering a sale on condition that it keeps more than 50 percent of voting rights in Alico. Based on Alico's business value, the acquisition of a 49 percent stake would likely cost the Chinese investors between 500 billion yen and 1 trillion yen, Nikkei reported.
Alico Japan, a branch of Alico, accounts for 60 percent to 70 percent of the company's insurance premium revenue, the report said, noting that AIG had said in October that it would sell Japanese subsidiaries AIG Edison Life Insurance Co and AIG Star Life Insurance Co along with Alico Japan.
AIG has recently received billions of dollars in financial assistance from the U.S. government.
