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AIG Failure Helps Rivals in China

September 18, 2008 RSS Feed Print

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Citigroup's Bob Leung says Asian insurance customers aren't going to stand for a company in as much trouble as AIG, and better-positioned rivals are lining up to steal business even though there's "little risk to policyholders' money" at AIG's Asian life insurance franchise.

[W]e expect strong domestic players such as China Life, Samsung Life, HSBC/Hang Seng Life in Hong Kong and Cathay Life in Taiwan to benefit from faster new business premium growth as consumers seek out stronger players.

China Life (LFC) is his favorite, with "the strongest balance sheet in the region" and a first-half solvency margin at over 300 percent and solid premium income. That means it can think about buying up battered rivals in China or abroad. China Life shares are up about 4 percent today.

Leung also notes the government's $85 billion bailout of AIG isn't a complete fix, and notes that Asian regulators might want tougher standards for their insurers than they do in the United States.

Tags:: Citigroup,; global economy,; AIG, Inc.,; Taiwan,; stock market,; China

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Chinese dictators always play dirty trick politics or play dumb with other, and attack coup while other are napping, or bully the weaker.
Such as sucked huge Taiwan investment in PRC, but prohibited them to take profit back to Taiwan, even asking to bring more money or otherwise force to forfeiture all. Also plan snares or traps to attract investors to deal business with Chinese dictators under below the waist, said an Author who learned and expert Chinese cultural and history. Most Taiwan investors forgot their family in Taiwan, but enjoy spring night in PRC, more than 50% of Taiwan investors lost most or all eventually, and became poverty-ridden that easily work for the interest of dictators as running dogs anti-Taiwan in exchange for the food or family daily living, the News reported.
Do you know about American had investment in PRC?

Louise of CA 2:12AM March 18, 2009

So, what's new? China ate our manufacturing base, and there is little reason to believe they (and other foreign nations) will not also eat the financial and insurance businesses too as ours go into atrophy.

of 11:58AM September 18, 2008

AIG Failure Helps Rivals in China

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