
Sep
27
AIG Gets IPO Approval, Releases 2010 Profit Estimate for AIA
Posted on Sep 27, 2010 by Sergio Ulloa (G+)
American International Group Inc. (AIG) has recently been given approval to list its Asian life insurance unit, American International Assurance Group Ltd. (AIA), on the Hong Kong Stock Exchange, as per initial plans announced earlier this year by mid-July 2010. Additionally, AIG has released the estimated annual operating profit of AIA, which should reach at least US$2 billion (EUR 1.5 billion) by the end of the fiscal year ending 30 November 2010. The initial public offering (IPO) of AIA may raise up to US$15 billion (EUR 11.1 billion) for AIG, with investor road-shows and marketing activities to start on 06 October 2010, followed by the pricing of the shares on 21 October 2010. It is lining up to become the second-biggest IPO of this year. Agricultural Bank of China already claimed the world's largest IPO title back in August 2010, with a confirmed US$22.1 billion (EUR billion) raised when its shares were listed in the Hong Kong stock exchange in July 2010. In regards to the operating profit estimates for the fiscal year 2010, AIG cited strong growth in Thailand and Korea, and an increase in insurance premium income realised by AIA that climbed 11.3 percent year-on-year to US$9.32 billion (EUR billion), in the nine months ended 31 August 2010, with Hong Kong accounting for the single biggest share at US$2.1 billion (EUR 1.56 billion), equivalent to a 3 percent increase compared to 2009, as per figures recently released in the unaudited results report. AIG will likely use the proceeds of the AIA IPO towards the repayment of debt incurred by the US government bailout it received during the global financial crisis. It is estimated that up to half of AIA will be sold by AIG during the formerly mentioned IPO. Insurance Companies mentioned: AIG
