Speech by CE at opening of AIG Asia Regional Headquarters (English only) (with photos)

Speech by CE at opening of AIG Asia Regional Headquarters
(English only) (with photos)
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Following is the speech by the Chief Executive, Mr Donald Tsang, at the opening of AIG Asia Regional Headquarters at AIG Tower today (October 6) (English only):

Mr Sullivan, Mr Tse, Mr Kanak, Distinguished Guests, Ladies and Gentlemen,

It is a great pleasure to join you this evening for the opening of the new AIG Tower. This elegant, modern tower, with its glimmering lights, has added yet another icon to our skyline. But, the opening of the tower is doubly significant because it also represents a homecoming for the company.

Founded in Shanghai in 1919, AIG is one of the very few US companies that can trace its roots back to China. Since then, AIG has grown to become one of the world's leading insurance and financial conglomerates. AIG withdrew from the Mainland market in the 1950s, but returned to its 'home territory' in 1992 to tap the enormous business opportunities arising from China's breathtaking development.

In Hong Kong, AIG started business in 1930 – right on the spot we are standing tonight. The business model must have worked well, because in 1968 they moved to the landmark AIA Building on Stubbs Road, a building that still dominates the area today. And now, after almost four decades of growth, the company's flagship building and regional HQ comes back to Central.

Like many of the 3800-odd international companies with regional operations in Hong Kong, AIG has been able to take full advantage of our position as the pre-eminent international financial services centre in Asia. Our free capitalist economy, level playing field for business, and sound regulatory framework have nurtured entrepreneurship and myriad business activities. A high concentration of world-class banks, insurers and reinsurers makes Hong Kong a natural choice for conducting region-wide insurance business and operations. Hong Kong also excels in professional services, such as financial planning, asset management, debt financing and capital formation. Last year, Hong Kong was the largest equity fund-raiser in Asia, eclipsing even Tokyo. Just last week, figures showed that Hong Kong was the second largest recipient of foreign direct investment in Asia, and 7th in the world. We have positioned ourselves as the prime location for multinationals to manage their regional and Mainland business operations. We have decades of experience in the Mainland market. Our market operates within a sound and trusted legal system. We have well-established global links, a free flow of capital, a critical mass of foreign investors, and a world-class financial and communications infrastructure.

AIG's regional headquarters reinforces Hong Kong's position as an international financial centre and premier insurance hub. We have about 180 insurers operating here - the highest concentration in Asia. They include multinational insurers, professional reinsurers and specialist insurers engaging in captive, mortgage, credit, marine and other business. Hong Kong's total gross premiums reached HK$123 billion (US$16 billion) in 2004. Our insurance penetration is now among one of the highest in the world, sharing the same ranking as the US.

More noteworthy is the fact that Hong Kong's insurance industry has maintained double-digit annual growth throughout the past decade. This sustained growth does not only highlight our underlying infrastructural strength and resilience, but also our world-class regulatory system that instils confidence in market development.

I am very pleased to see that AIG will continue to use Hong Kong as its regional headquarters to manage your Asia-Pacific business. The opening of the new AIG Tower is a milestone for AIG's operations in Hong Kong and the region. It represents a strong commitment to Hong Kong and a vote of confidence in our future. With the Hong Kong economy performing well, and continued liberalisation of the insurance and financial markets in the Mainland and other emerging economies in the region, AIG is poised for strong and steady growth in the future.

I would like to wish AIG all the very best for the future and a hearty welcome home to Central. Thank you.

Ends/Thursday, October 6, 2005
Issued at HKT 19:29

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