AIG to sell Taiwan business for $2.2 bn

NEW YORK: American International Group will sell its Taiwanese life insurance operations for $2.16 billion, a step that will help the insurer to raise funds to repay the US taxpayers.

Nan Shan Life Insurance Company would be sold to Ruen Chen Investment Holding Co in an all-cash deal worth $2.16 billion, AIG said on Wednesday.

Ruen Chen is 80 per cent owned by Taiwan-based conglomerate Ruentex Group while the remaining stake is with footwear manufacturer Pou Chen Corp.

AIG, which had received billions of dollars from the US government during the height of financial crisis in 2008-09, is looking at ways to repay the bailout funds.

"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," AIG president and chief executive officer Robert Benmosche said in a statement.

The buyer has also expressed its intentions to retain the current Nan Shan management team.

According to the statement, Nan Shan serves four million policyholders and has about 4,100 employees.

In mid-2010, AIG was all set to sell Nan Shan to Hong Kong-based Primus Financial but the deal was blocked by Taiwan authorities.