AIG agrees to sell Nan Shan Life for US$2.15 bln

Published: 12 Oct 2009 21:32:36 PST

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Oct. 13, 2009 (China Knowledge) - American International Group Inc has agreed to sell its 97.5% stake in Nan Shan Life Insurance Co to a group of investors led by Primus Financial Holdings Ltd for US$2.15 billion, sources reported.

Hong Kong-based Primus Financial has teamed up with China Strategic Holdings, a group of Hong Kong investors, to bid for the Taiwan insurance unit of AIG.

Primus Financial and China Strategic will seek loans from Taiwanese lenders to fund the acquisition. AIG will use the proceeds from the sale to help repay more than US$80 billion in U.S. government bailout loans.

However, detailed information on the deal is not available.

Other bidders of the deal included Carlyle Group, Chinatrust Financial Holding Co and Fubon Financial Holding Co.

Nan Shan Life Insurance is Taiwan's second largest life insurer by assets after Cathay Life Insurance Co.