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JPMorgan Chase (JPM) wanted a piece of what could be the most interesting insurance IPO of the year, but it won't get a taste.
American International Group's (AIG) Asian life insurance unit, American International Association, is going to go public in Hong Kong for an estimated $10 billion, and JPMorgan isn't being allowed to play, insiders say, because of a sour relationship that stretches back to the September 2008 financial crisis. As a result, it will be the only major investment bank not being admitted to the party.
The loss will be noticeable, as what is expected to be the largest IPO in Asia this year could generate more than $300 million in total fees. The long list of investment banks lining up to claim a piece of this includes Citigroup (C), Credit Suisse (CS), Goldman Sachs (GS), Bank of America (BAC), UBS (UBS), CCB International and ICBC International.
Throughout the AIG restructuring, JPMorgan acted as it's adviser, along with Blackstone Group (BX). The latter is still in that role, but JPMorgan left after the relationship went south. Says one insider, according to Business Insurance, "The relationship is not here, which explains why the bank has not been mandated on AIA's IPO."
Says another source, "It's a politically charged IPO," because of the involvement of the U.S. government in the bailout and, of course, everything that followed.
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