Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

AIG To Inject $92.5M In China

|Includes: American International Group Inc (AIG), AV, AXAHY, AZSEY, CAPL, ING, LGGNY

AIG to Inject $92.5M in China - By Zacks Investment Research

American International Group Inc. (NYSE:AIG) announced its intentions to invest HK$718.1 million or about $92.5 million in PICC Group's PICC Property and Casualty Co. Ltd. (PICC P&C). The investment will be made through a rights offering. Following the investment, the company will hold a 9.9% stake in PICC P&C.

The investment will be a step ahead in the joint venture (JV) that was announced between AIG and PICC Life Insurance Co. Ltd. (PICC Life) in collaboration with The People's Insurance Co. of China Ltd. (PICC Group) in Nov 2012. The JV was based upon the condition that AIG will contribute $500 million by buying the H shares of PICC Group. Moreover, AIG will retain at least 75% of the $500 million shares for 5 years post the initial public offering (NYSEARCA:IPO) of PICC Group, which was initiated last year.

PICC Group is the fourth-largest insurance company in China and a strong market position brightens AIG'sgrowth outlook through this JV. This should also boost the company's distribution of life and P&C insurance products, thereby escalating growth opportunities in its core businesses. Further, PICC Group has about 69% stake in PICC P&C, which also fortifies AIG position in the China's P&C insurance market.

Moreover, China's P&C insurance market is escalating by a healthy 10-15% on an annual basis. This also explains the rationale behind AIG's investment in PICC P&C, which enjoys about 35% ownership in the P&C insurance market of China.

The complete repayment of the government bailout loan and asset disposals has helped AIG to focus on its core insurance operations and attain a flexible capital position. The progress is also reflected by the modest growth in the company's financials.

While any robust growth compared with the peer group appears overly ambitious at present, we believe a positive turnaround in the global economy and an improved macro scenario is likely to pave the way for significant growth of AIG.

Along with AIG, its peers such as MetLife Inc. (NYSE:MET), Cigna Corp. (NYSE:CI) and Hartford Financial Services (NYSE:HIG) carry a Zacks Rank #2 (Buy).

Profit Rocket

Invest2Success China Hong Kong "Profit Rockets" Stock Picks
Subscription Email Service

Free Trial - Receive daily low-risk high-reward momentum stock picks every day that include buy entry, stop-loss, take profit area targets, and trade management information on China and Hong Kong equities to your email inbox.

Morningstar Asia

Morningstar Asia Investment Research Free Trial

Asia Pacific Financial Forecast

Asian-Pacific Financial Forecast

Asia-Pacific Markets

Intraday Forecasts on the Hang Seng, Nikkei 225, MSCI Singapore, ASX 200, STI, Kospi 200, MSCI Taiwan Stocks
You get short, clear forecasts for the direction throughout the trading session, most with short-term Elliott wave-labeled charts. And you get precise support and resistance points, so you always stay in control of your position risk.

InstaForex Metatrader

Instaforex Metatrader
Forex - Gold Silver Copper Oil - Commodities - Futures - NYSE CFD's

Industry standard Metatrader platform. ECN & Standard Spread Accounts. ECN Spreads As Low as 0.10 Pips. 3 Pip Standard Account Trading Spreads. Trade Gold Silver Copper Oil and Agriculture Commodities Also. Forex Analytics Buy Sell Trade Signals. Metatrader Expert Advisors Auto-Trading & Free VPS Service. Mobile SmartPhone Metatrader Software Trading. ForexCopy Trade Copier. Forex Training Course & Videos. Instaforex TV. Trading Contests. No Minimum Opening Account Balance. Easy Deposit Withdrawl. Earn Annual Interest Paid Monthly On Your Cash Account Balance. Swap-Free Accounts Available. Easy Online Adjustable 1:1 to 1:500 Leverage. Hedging Allowed. New Account Bonus Deposits. 24 / 6 Support

ZuluTrade

Forex Accounts with Free Buy Sell Signals
Autotrade the Forex market like never before! Let ZuluTrade drive trades by specialists into your FX account for free. ZuluTrade bridged the gap between valuable information in money markets and trade execution, by converting the advice of professional and talented traders globally to an executed trade rapidly and automatically in your account.

AvaTrade

Online Forex Trading Platform and Award Winning Forex Broker AvaTrade
Metatrader Trading Platform. Trade Currencies, Commodities, Indices and Equities from one screen with AvaTrade and MetaTrader the industry's most powerful and flexible trading platform. Trade with Confidence: Safety of Funds, Regulated Broker, Award Winner, Worldwide Branches, Established Broker. Trader Advantages: Fixed Spreads, New Account Bonus, 24/5 Support, Risk-Free Demo Account, Start Trading from $100. Free Education Knowledge Training: Free Video Tutorials, Free Webinars, Online Trading Course, Forex Trading eBook, Market Analysis.

eToro Openbook

New Age Forex Stocks Futures Social Investing Trading with eToro OpenBook