Business

AIG to sell Nan Shan Life stake for $2.16bn to Ruentex

AIG's Associate General Legal Counsel Andrew Borodach (2nd L) and Ruentex Group Chairman Samuel Yin (2nd R) shake hands
Image caption The deal was announced at the Nan Shan office headquarters

American International Group (AIG) has said it is selling its stake in Taiwan's third-biggest insurer for $2.16bn (£1.4bn) to a consortium led by Ruentex Group.

AIG is disposing of its 97.6% stake in Taiwan's Nan Shan Life Insurance.

The sale is part of AIG's plans to pay back the US government's $180bn bail-out, which followed the financial crisis in 2008.

However, the deal still has to be passed by Taiwan regulators.

Last year, Taiwan's Financial Supervisory Commission turned down AIG's sale of Nan Shan to Hong Kong-based Primus Financial Holding over worries it could lead to Chinese investment in the island's financial sector.

The latest proposed sale is to the Ruen Chen consortium - which includes Ruentex Industries and Pou Chen Corp.

In a statement, the consortium said: "We intend to be a long-term stakeholder in Nan Shan and we want to ensure the sustainability of its operations."

AIG president and chief executive Robert Benmosche said: "Ruen Chen has demonstrated that it is able and willing to invest in Nan Shan's future and that it will protect and serve the best interests of Nan Shan's policyholders, employees and agents.

"Ruen Chen offers strong operational and funding capabilities and possesses a clear ability to satisfy the strict criteria that governed AIG's bid review process," he added.

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