American international group Inc, the world's biggest insurer, said it will buy 9.9 percent of PICC Property & Casualty Co, a unit of China's biggest car and home insurer, giving it access to sales outlets across the country.

　　The stake would be worth about US million, based on PICC's plans for an initial public offering later this month. American International didn't disclose the price it will pay.

　　Cooperation with PICC may help American International build its brand and business in China, one of the world's fastest-growing insurance markets.

　　American international will sell health policies through the China insurer's 4,300 branches and offer training to PICC staff, the New York-based company said in a statement. Foreign insurers wrote less than 2 percent of policies sold in China in 2001.

　　"The difficulty for foreign companies getting into China is very often one of distribution," said Andrew Salton, who helps manage about US.5 billion at Standard Life Investments. "AIG has been in China for a while and has struggled as it's expensive to build that distribution."

　　American international opened its first China branch in Shanghai in 1992 and has a sales force of more than 12,000 agents in the country at the moment. The company plans to sell mutual funds and pension funds and to provide credit cards and loans to Chinese consumers.

　　Jennifer ho, a spokeswoman of American International in Hong Kong, declined to comment further on the purchase. Fu Zhu, PICC's company's secretary, couldn't be reached for comment.

　　Picc, which controls 70 percent of China's domestic insurance market, plans to sell as much as 35 percent of its shares for about US million, according to bankers involved in the sale.

　　"It's a boost in the sense that a big chunk of shares have been sold," Salton said. "It'll give investors reassurance."

　　Investors raised concerns about PICC because the company faces increased competition.

　　China will open its industry to overseas companies as a condition of its entry into the World Trade Organization in December 2001.

　　With a population of 1.3 billion, China will lift restrictions on where foreign insurers can operate at the end of 2004.