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AIG Commits to Sale of Taiwanese Life Insurance Unit

Source: Wall St. Journal

Posted on 25 Aug 2010

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Representatives of American International Group, Inc. have announced the giant insurer is committed to said Tuesday that it is committed exclusively to selling its stake in the insurer's Taiwanese life insurance unit, Nan Shan Life Insurance Co. to a group established by China Strategic Holdings Ltd. and Primus Financial Holdings Ltd.

AIG reps spoke definitively, saying for the first time that the insurer "has no intention of selling its stake to any other party, and for example, will not entertain an offer from Chinatrust."

Chinatrust Financial Holding Co., the parent company of Taiwan's largest credit-card issuer, restated this month its interest in buying AIG's stake in Nan Shan Life.

AIG said it is confident the deal with the China Strategic consortium will be approved by Taiwan's regulator.

Taiwan's Financial Supervisory Commission and Chinatrust declined to comment. China Strategic wasn't immediately available for comment.

China Strategic and Primus agreed in October to buy Nan Shan Life from AIG for $2.15 billion, but the deal has been hindered by concerns in Taiwan that China Strategic is backed by Chinese funds and has no experience in operating an insurance company.

China Strategic has denied links to China, and AIG has said it received "legally binding representations" from the consortium that no Chinese money is being used to fund the deal. The consortium and AIG recently extended the deal's deadline to Oct. 12.