2010-08-26 17:17

China Life Insurance Co, the country's biggest life insurer, has no plan to buy a stake in American International Group's (AIG) Asian arm AIA prior to its imminent initial public offering in Hong Kong, the company's Chairman Yang Chao said on Thursday.

"I haven't contacted the top management of AIG about a potential strategic investment into AIA's pre-IPO, since we decided to quit the bidding for AIA since March of 2009," Yang said.

Earlier this month, the 21st Century Business Herald reported that a consortium formed by China Life Insurance, China Cinda, and private conglomerate Fosun Group, had temporarily dropped a bid for a 30 percent stake of AIA prior to its IPO on concerns that it could be priced too high.

"According to my knowledge, AIG has been trying its best to push forward AIA's IPO," Yang added. "But it will be quite difficult for AIA to decide on pricing and other conditions on strategic investments before the IPO due to relevant Hong Kong regulatory rules."

AIA reportedly plans to list in Hong Kong in the fourth quarter of this year and hopes to raise as much as $23 billion.

But Yang didn't rule out the possibility of becoming a strategic investor during AIA's IPO process.

"Whether we will invest in AIA's IPO will depend on the market conditions, and we will prudently study the situation and wait for the pricing mechanism that will be disclosed in the prospectus," Yang said.