Citing uncertainties, China Life abandons bid for East Asia
Thursday, Mar 05,2009, 4:25:11 PM Click:
Citing uncertainties, China Life abandons bid for East Asia AIG Life Unit Rebecca Ng
China Life Insurance Co. Ltd [77,626], the largest domestic insurer in China, has confirmed it has "already given" tender for American International Assurance Co. Ltd, the Asian subsidiary of the insurance life of the credit problems in American International Group Inc [18540], citing an "inappropriate" investment proposal.
A spokesman said that China Life BestWire AIG had previously contacted proactively "China Life and invited the Chinese insurer to participate in the tender for the AIA, as AIG seeks investors globally .
The spokesman said the last time that China Life has been in contact with AIG was "before the Chinese New Year" during the last week of January. He added that after evaluating the investment arrangement proposed by AIG, China Life has the investment plan was "inappropriate to its own investment guidelines" and decided "to abandon the tender."
The spokesman would not provide details on what is wrong with the investment proposal, but he said "the situation is changing" because of the uncertain investment climate and the U.S. government on policies bailout of AIG.
The speculation that Beijing-based China Life would be interested to bid for the AIA has been circulated in the market since the early reports cited Regulatory Commission China Insurance Vice President Li Kemu said February 26 that China Life and AIG have been in negotiations for the sale of AIG's Asian unit.
Li said in a statement that the problems of AIG were a "hot topic". He said that AIG sent its executives around the world, including China, to discuss its operations.
According to Li, the anticipated sale of the AIA is a "business deal" between the AIA and the people involved companies that have the capacity to acquire AIA. As the regulator of insurance, the CIRC is also the problem of risk, or "the stability of the Chinese AIA's operations," said Li
To effectively protect policyholders interests, Li said that the CIRC has had close discussions with the United States, Hong Kong and other regulatory authorities.
The Chinese regulator is also concerned about the activities of the AIA in China. Li said. Currently, AIA Chinese are "normal," he said.
The final offer of Hong Kong-based AIA were due February 27.
Patricia Chua, a spokesman for the AIA, declined to comment on whether AIG has negotiated with China as regards the life of the sale of the AIA. She confirmed that "there is not an official announcement of the AIA today [Feb. 27]."
AIG Hong Kong said in a statement that "AIG has not yet published for the fourth quarter and 2008 year-end results. We continue to work with the U.S. government to assess the potential of new solutions to address the financial challenges of AIG. We will provide an update when we report financial results in the near future. "
AIG in 2008 the results will be released March 2.
American International Assurance Co. Ltd, American International Assurance Company (Bermuda) Ltd, American International Assurance Company (Australia) Ltd. and AIA Pension and Trustee Co. Ltd (AIA companies or AIA) claimed collectively to be one of the largest groups life insurance in Asia, with branches, subsidiaries and affiliates in China, Hong Kong, Macao, Australia, Brunei, India, Indonesia, Malaysia, New Zealand, Singapore, South Korea, Thailand and Vietnam .
The spokesman for China Life said the insurer is "not explicitly target foreign investment." At the present time. He said that the company needs to consider both the capital and long-term liability issues carefully when looking for a target acquisition.
When asked if China will go from life to focus more on investing in infrastructure projects during the global financial crisis, the spokesman could not confirm, but said that "this proposal is reasonable.
(By Rebecca Ng, Hong Kong writer: Rebecca.Ng @ ambest.com)
Copyright © 2009 hours Best Company, China Life Insurance Co. Ltd [77,626], the largest domestic insurer in China, has confirmed it has "already given" tender for American International Assurance Co. Ltd, Asian subsidiary of life insurance of the credit difficulties American International Group Inc
China Life Insurance Co. Ltd [77,626], the largest domestic insurer in China, has confirmed it has "already given" tender for American International Assurance Co. Ltd, the Asian subsidiary of the insurance life of the credit problems in American International Group Inc [18540], citing an "inappropriate" investment proposal.
A spokesman said that China Life BestWire AIG had previously contacted proactively "China Life and invited the Chinese insurer to participate in the tender for the AIA, as AIG seeks investors globally .
The spokesman said the last time that China Life has been in contact with AIG was "before the Chinese New Year" during the last week of January. He added that after evaluating the investment arrangement proposed by AIG, China Life has the investment plan was "inappropriate to its own investment guidelines" and decided "to abandon the tender."
The spokesman would not provide details on what is wrong with the investment proposal, but he said "the situation is changing" because of the uncertain investment climate and the U.S. government on policies bailout of AIG.
The speculation that Beijing-based China Life would be interested to bid for the AIA has been circulated in the market since the early reports cited Regulatory Commission China Insurance Vice President Li Kemu said February 26 that China Life and AIG have been in negotiations for the sale of AIG's Asian unit.
Li said in a statement that the problems of AIG were a "hot topic". He said that AIG sent its executives around the world, including China, to discuss its operations.
According to Li, the anticipated sale of the AIA is a "business deal" between the AIA and the people involved companies that have the capacity to acquire AIA. As the regulator of insurance, the CIRC is also the problem of risk, or "the stability of the Chinese AIA's operations," said Li
To effectively protect policyholders interests, Li said that the CIRC has had close discussions with the United States, Hong Kong and other regulatory authorities.
The Chinese regulator is also concerned about the activities of the AIA in China. Li said. Currently, AIA Chinese are "normal," he said.
The final offer of Hong Kong-based AIA were due February 27.
Patricia Chua, a spokesman for the AIA, declined to comment on whether AIG has negotiated with China as regards the life of the sale of the AIA. She confirmed that "there is not an official announcement of the AIA today [Feb. 27]."
AIG Hong Kong said in a statement that "AIG has not yet published for the fourth quarter and 2008 year-end results. We continue to work with the U.S. government to assess the potential of new solutions to address the financial challenges of AIG. We will provide an update when we report financial results in the near future. "
AIG in 2008 the results will be released March 2.
American International Assurance Co. Ltd, American International Assurance Company (Bermuda) Ltd, American International Assurance Company (Australia) Ltd. and AIA Pension and Trustee Co. Ltd (AIA companies or AIA) claimed collectively to be one of the largest groups life insurance in Asia, with branches, subsidiaries and affiliates in China, Hong Kong, Macao, Australia, Brunei, India, Indonesia, Malaysia, New Zealand, Singapore, South Korea, Thailand and Vietnam .
The spokesman for China Life said the insurer is "not explicitly target foreign investment." At the present time. He said that the company needs to consider both the capital and long-term liability issues carefully when looking for a target acquisition.
When asked if China will go from life to focus more on investing in infrastructure projects during the global financial crisis, the spokesman could not confirm, but said that "this proposal is reasonable.
(By Rebecca Ng, Hong Kong writer: Rebecca.Ng @ ambest.com)
Copyright © 2009 hours Best Company, China Life Insurance Co. Ltd [77,626], the largest domestic insurer in China, has confirmed it has "already given" tender for American International Assurance Co. Ltd, Asian subsidiary of life insurance of the credit difficulties American International Group Inc
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