AIG to sell Taiwan unit to Ruentex group: report
US government-controlled insurance giant AIG was expected to announce today the sale of its Taiwan unit to a consortium led by Ruentex, one of the island's biggest conglomerates, local media said.business Updated: Jan 12, 2011 10:42 IST
US government-controlled insurance giant AIG was expected to announce on Wednesday the sale of its Taiwan unit to a consortium led by Ruentex, one of the island's biggest conglomerates, local media said.
AIG will finalise the deal later in the day with the consortium led by Ruentex, which will pay $3 billion for Nan Shan Life Insurance, the United Daily News and other newspapers reported.
Officials from Nan Shan and Ruentex were not immediately available for comment.
Taiwan's industry regulator, the Financial Supervisory Commission, has said it will only accept a deal if the buyer of Nan Shan meets certain requirements, including professional management capability and long-term commitment.
Financially troubled AIG sold Nan Shan Life to a consortium led by Hong Kong-based Primus Financial Holdings for $2.15 billion in 2009, but the deal was rejected by the Taiwanese financial regulator last year.
Taiwanese authorities said they feared the Hong Kong group lacked the experience needed to manage an insurer and argued it had failed to provide a long-term management commitment, claims rejected by the consortium.
The rejection of the bid came as a blow to AIG, once the world's largest insurer, which has been selling assets to pay back US government loans since its rescue from collapse during the 2008 financial crisis.
Ruentex is a sprawling conglomerate with interests in sectors as diverse as construction, textile and finance.