Liberty Mutual Opens Beijing Branch

Liberty Insurance Company Ltd., a wholly owned Chinese subsidiary of Liberty Mutual Insurance Company (Liberty Mutual) and part of the Liberty Mutual Group, has been granted approval to commence branch operations in Beijing by the China Insurance Regulatory Commission (CIRC).

Headquartered in Chongqing, LICL received CIRC approval in July 2008 to open a Beijing branch, the first branch established by the company in China. It will offer personal lines products and a wide range of commercial lines products that focus on the needs of small-to-medium enterprises.

Liberty Mutual in China

Liberty Mutual has had a presence in China since 1996 when it opened a Representative Office in Shanghai.

In January 2004, the company received approval to open its first insurance office in Chongqing, positioning Liberty Mutual as the first foreign property and casualty insurer with a presence in western China.

In September 2007, Liberty Mutual received approval to have its Chongqing operation converted to a wholly owned subsidiary, which it named Liberty Insurance Company Limited. LICL is the only Fortune 500 company subsidiary headquartered in Chongqing.

Teams Rely on Insurance to Protect Olympians

An injured star in the 2008 Olympics may cost his country a chance at the gold, but his injury may cost his pro team millions.

Many athletes in the Beijing Olympics play professionally for teams around the world. These professional teams insure athletes for injuries not only for regular season matches, but for international competition as well.

“With millions of dollars and other currencies at stake, professional sports cannot compete without the financial security provided by insurance,” said Candysse Miller, executive director of the Insurance Information Network of California. “But the real problem is teams that lose star players could be left footing the bill.”

Teams can benefit from salary coverage, which allows them to sign replacement players without overburdening their payroll. Policies for athletes, meanwhile, include coverage for the loss of future earnings, the added costs of marketing an injured player and even the loss of endorsements.

In the United States, policies for professional athletes typically costs two-to-three percent of their salary. Factors which contribute to insurance prices are the player’s age, sport and position, history of injury and the amount of expected game time.

While some Olympians are insured for themselves and their respective teams, many Olympic athletes compete as individuals and earn their income primarily from endorsements. For these athletes, too, insurance is available to protect their potential earnings from future endorsements.

AIG Sub Gains License for China Business

American International Group Inc. (AIG) announced that its wholly owned subsidiary, AIG General Insurance Company China Limited (AIG General), headquartered in Shanghai, Peoples Republic of China, has been granted approval by the China Insurance Regulatory Commission (CIRC) to establish a branch in Beijing.

This marks the first step in AIG General’s geographic expansion across China following its incorporation as a wholly owned foreign enterprise (WOFE) in September 2007. Prior to establishing AIG General last year, its parent company AIU Insurance Company had operated branches in Shanghai, Guangdong, and Shenzhen, which were subsequently consolidated into AIG General at the time of its incorporation.

AIG Chairman and Chief Executive Officer Robert Willumstad said approval of a Beijing branch of AIG General is an important step forward in AIG’s international growth strategy. “We are very excited to have the opportunity to play a larger role in the economic growth of China, a dynamic market that is so closely tied to AIG’s heritage,” Willumstad said.

AIG General President and Chief Executive Officer Peter Flint said, “Beijing is a strategically important market for AIG General. As the country’s political center and seat of the central government, it offers significant growth potential. Beijing is one of the world’s largest cities. In terms of Gross Domestic Product, Beijing’s economy would rank among the 60 most economically developed countries in the world. We look forward to serving our local and international customers in Beijing with our expanded network, and we are proud to continue our pioneering role in product innovation and industry standards.”

Olin Wethington, chairman of AIG Companies in China added: “The approval to establish AIG General Beijing Branch is another historic milestone for AIG Companies in China. In the tradition of AIG, the newly approved AIG General Beijing Branch will play an active role in contributing to the growth of the insurance industry in the region.”

AIG traces its roots to China, where its earliest predecessor companies were founded by Cornelius Vander Starr in Shanghai in 1919. In 1992, AIG became the first foreign insurance organization to receive a license to operate general and life insurance business in the People’s Republic of China. AIG General will join several other AIG Companies with operations in Beijing, including AIG Business Consulting Company Limited (AIGBC) and its life operation American International Assurance Company Limited (AIA), which has expanded to 17 locations across Beijing since establishing its Beijing Branch in 2002.