AIG unit launches M&A insurance products in China

Jan. 9, 2009 (China Knowledge) - American International Underwriters (AIU), the property arm of the U.S. insurer AIG in the country, launched three merger and acquisition (M&A) financial insurance products on China's mainland market on Jan. 7, sources reported.

The three products include M&A guarantee compensation insurance, improved financial institution civil liability insurance and comprehensive banking insurance, said the company.

It also said the M&A insurance products enable the buyer to claim directly from the insurer without first approaching the seller, reducing losses caused by the seller in the M&A transaction.

Sources said the China Banking Regulator Commission (CBRC), the country's top banking regulator,      had approved banks to issue credit for M&A transactions on Dec.9, 2008, revoking the restrictions on loans for M&As for the first time on the mainland.

The Industrial and Commercial Bank of China (ICBC)<601398><1398>, the largest of China's Big Four state-owned banks by market value, became the first Chinese lender to grant an M&A loan through a contract with Beijing Capital Co Ltd<600008> on Jan. 6, sources said.