By staff reporter Chen Huiyin, Wenxiu, and Shenhu

Chinese buyers appeared eager after American International Group (AIG) announced recently it would sell some assets of its subsidiary insurer AIA for capital amid the credit crunch. It remains unclear exactly what portions of assets will be sold.

Analysts say that the most valuable AIA asset for the Chinese is its China business. The Asia-Pacific region is one of the key generators of profits for AIG’s life insurance and pension plans. Excluding Japan, the Asia-Pacific region accounted for 47 percent of AIG’s second-quarter sales this year in the life insurance and pension sector. Japan contributed another 49 percent.

Selling AIA is part of AIG’s plan for repaying mounting debts to the Federal Reserves, which agreed to provide a bridge loan at US$ 85 billion in return for an 80 percent stake in the firm.

In its recent announcement, AIG committed to selling some equity but said it would maintain controlling stakes in its overseas businesses. Potential buyers included China’s largest insurance company, China Life, and the country’s largest bank by market capital, ICBC.

A source told Caijing under condition of anonymity that China Life is not interested in acquiring equities in AIA, as things are unclear with its mother company.

According to an anonymous source from ICBC, the company is cautiously interested in an acquisition opportunity for a share of AIG, as ICBC already had plans to start a joint insurance company with AIA.

Chairman of the state-owned People’s Insurance Company Group (PICC) Wu Xian was also quoted by Xinhua news, the official state media provider, as saying, “Our attitude is that if they are in trouble, PICC will extend our help.”

A source said that unless a strong stakeholder comes in, AIA will not be able to maintain its current growth momentum.

AIA China is the only wholly-owned foreign insurance company operating in China, a fact which has been praised as a “unique value” for customers by the company’s China president, Chen Rongsheng. However, others argue that this independent style restricts its expansion in China.