The city of Shanghai's American International Group (AIG) Insurance Co China has become China's first wholly foreign-owned insurance company to get approval for a shipping insurance center in Shanghai.

The center, in line with local government's strategy, will handle shipping insurance for marine vessels, cargo transport, and marine liability and is expected to push Shanghai closer to becoming an international financial and shipping center.

AIG Insurance China is a property and casualty subsidiary of the US's AIG, with insurance premiums of 374 million yuan ($60.96 million), putting it in second place among Shanghai's foreign insurance companies.

AIG, whose HQ is in the US, is a leading international insurance comapny serving more than 130 countries, with its stock listed on the New York and Tokyo Stock Exchanges.