AIG’s Greenberg Returns to China With Dazhong Tie-Up AIG前执行长格林伯格借投资大众保险重返中国

By newsdoug on July 6, 2011

Just three years after seeing his company, AIG (NYSE: AIG), driven to the brink of insolvency at the height of the global financial crisis, Maurice “Hank” Greenberg is returning to China to take another stab at his favorite market with a new insurance tie-up. Details are still thin pending an official ceremony set for next Monday, but a pre-announcement for the event says Greenberg’s Starr International, a private insurance holding company, will invest in another private Chinese insurer, Dazhong Insurance. (company announcement) This event has Shanghai written all over it, as Shanghai city officials are set to attend the event in their city, along with officials from China’s insurance regulator. Many followers of AIG, recipient of the largest-ever bailout by the US government during the financial crisis, will recall that Greenberg loved to tell the world how AIG was founded in Shanghai, and he was never shy about talking up the big potential of the China market. Of course, all that was put on hold when Greenberg was forced out of AIG during the crisis, and AIG’s Asia empire was later sold off in pieces to help pay back the US government. Given Greenberg’s strong connections in China and the backing for his new endeavor by the Shanghai government, I’d look for big things from Dazhong in the future, including a probable public listing in the next couple of years. China is sorely in need of another strong major player in its insurance sector, as the market is now dominated by China Life (HKEx: 2628; Shanghai: 601628) and Ping An (HKEx: 2318; Shanghai: 601318), and despite some hype at their formation, a number of foreign-invested insurance joint ventures haven’t made any significant progress. Look for big talk and lots of smiles at the ceremony next week, and for big things from Dazhong in the next 1-2 years.

Bottom line: Hank Greenberg’s return to China through an investment in Dazhong Insurance marks an important tie-up that could see the emergence of a major new player.

美国国际集团(AIG)<AIG.N>前执行长格林伯格(Maurice “Hank” Greenberg)曾目睹其公司在全球金融危机最严重之时濒临破产，仅仅三年後，格林伯格便带着新的保险合作项目重返他情有独钟的中国市场。诸多合作细节尚不得而知，一切均要等到下周一才正式揭晓，但活动公告称，格林伯格的私人保险控股公司——胜达国际集团(Starr International)将投资中国另一家私人保险公司——大众保险。此事将有上海市政府的参与，因上海市官员连同中国保险监管部门的官员将共同出席合作仪式。很多关注AIG的人能回忆起，格林伯格很喜欢告诉世界AIG是如何从上海发迹，他也从不羞于谈及中国市场的巨大潜力。当然，当他在危机期间被迫退出AIG时，他在中国的计划都被搁置了，且为偿还美国政府的救助款，AIG的亚洲帝国随後也被变卖得四分五裂。考虑到格林伯格在中国强有力的人脉以及上海市政府对其新投资的支持，我相信大众保险未来会有大行动，包括未来几年可能会上市。中国的保险业市场目前由中国人寿<601628.SS> <2628.HK>和中国平安<601318.SS> <2318.HK>两家保险公司主导，因此非常需要出现另一个强有力的竞争者，尽管很多外国投资的保险合资企业在其创建之时炒作得天花乱坠，但迄今未取得明显进展。相信下周的合作仪式上不乏重要会谈和满脸洋溢的笑容，相信大众保险未来1-2年会有大行动。

一句话：格林伯格通过投资大众保险回归中国是一次重要合作的标志，这次合作可能会给中国市场带来一个重量级竞争者的崛起。