American International Group (AIG) is planning to offload its stake in Chinese insurance company PICC P&C through a block deal, IFR said on Saturday, citing a term sheet of the deal.

AIG is planning to sell around $1.2 billion worth of shares in the Chinese insurance company, which would make it the biggest block deal in Asia this year. AIG is said to be offering 740 million PICC P&C shares at an indicative price range of HK$13.06-HK$13.35 ($1.68-$1.72) - an eight percent discount on PICC P&C's stock price at closing on Friday.

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After the block deal, AIG would be left with around 110 million shares in the company. The company has agreed to lock up the remaining 110 shares for 60 days.

The American-based multinational insurance company has been trimming its exposure in PICC P&C since last year. AIG raised $1.3 billion by selling a substantial stake in the company in 2015.  The company bought a stake in PICC P&C as a cornerstone investor in 2003.    

After the block deal is completed, AIG would join a slew of American and European companies who have been selling their stakes in Chinese insurance and financial companies. In recent months, Citigroup and Deutsche Bank became latest foreign companies to sell their minority stakes in Chinese banks.

Financial experts say that ongoing slowdown in China's economy is prompting many foreign companies to bring down their exposure in Chinese financial service companies. Analysts are expecting much more big exits by foreign companies from Chinese financial companies in the coming months.

Tagschina, AIG, PICC P&C