American International Group Inc. (NYSE: AIG), People’s Insurance Co. Group of China (PICC) and PICC Life Insurance Co. Ltd. have entered into a joint venture agreement, forming an insurance agency in China.

In December, AIG invested $500 million in PICC as the largest investor in its initial public offering. In connection with the investment, PICC Life and AIG agreed to form the agency.

The agency is an insurance distribution company that will provide life insurance, retirement insurance and property and casualty insurance. The company should be operational by the first quarter of 2014.

AIG, headquartered in New York, will own 24.9 percent of the company, and PICC Life will own 75.1 percent. The joint venture was announced May 29. 

Founded in 1949, Beijing-based PICC is the largest insurance company in China, and operates PICC Life.

Insurance companies have continued consolidating in the past few months. In May, Digital Insurance picked up Fallick Insurance Services, Marsh announced it was acquiring Rehder y Asociados Group, an Peruvian insurance provider and Confie Seguros bought Texas State Low Cost Insurance Agency of Austin

For more on insurance M&A, see "Insurance Industry Experiences M&A Uptick."

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