Italian insurer Assicurazioni Generali SpA appeared one step ahead of the world’s largest insurer American International Group extending its business in China, the fastest-growing economy over the globe with huge potential.

Generali sold a record $2.4 billion in group policy in China this year, according to the figures released by the Chinese regulator.

Generali’s move to the first place from last year’s fifth position marks the weakness of AIG after the vast regulatory probe it faced and the ouster of its longtime CEO and chairman Maurice Greenberg.

Italian insurer received a contract to insure 390,000 retired employees at venture partner China National Petroleum Corp., according to data released by the China Insurance Regulatory Commission which started publishing monthly insurance data for the first time in August 2004. AIG started its business in China in 1992, while Generali is a beginner on the market with the business set up in 2002.

Generali China Life Insurance Co., Generali’s China venture, has three offices in China, in Beijing, Guangzhou and Foshan.

Generali sold 20.15 billion yuan ($2.4 billion) of policies in China in the three months ended March 31, and now controls with its Chinese partner CNP about 18% of the nation’s life insurance market, the figures for the first quarter show.