AIG to Offer Investment-Linked Insurance in China

The China Insurance Regulatory Commission (CIRC) said it has given approval to American International Assurance Co Ltd (AIA), a unit of American International Group Inc (AIG), to launch two investment-linked insurance products in China.

The products will be provided by seven AIA branches including those in Beijing, Shanghai and Shenzhen, the CIRC said in a statement.

Insurance companies are increasingly seeking to launch investment-style products in China as the stock market is booming.

The CIRC has recently given similar approvals for joint ventures with ING Group, CIGNA Corp and Italy's Assicurazioni Generali SpA, as well as China Life Insurance Co, the country's largest insurer.

CIRC data show that China's insurance sector raised 9.63 bln yuan from the sale of investment-linked products in the first six months of this year, with foreign insurers recording growth of 720 pct, compared with 190 pct growth by domestic insurers offering such products.