AIG sells Taiwan life insurance unit to Primus for $2.15 billion
13 Oct 2009
American International Group (AIG) today said that it is selling its life insurance unit in Taiwan to a consortium led by Primus Financial Holdings Limited for $2.15 billion.
In July, AIG had said that it is planning to sell its Taiwan credit card business, AIG Credit Card Co. (Taiwan) Ltd and also placing on auction its Taiwanese life insurance unit Nan Shan Life Insurance Co. (See: AIG to exit Taiwan credit card business; puts Nan Shan on block)
AIG's Taiwan life insurance unit, Nan Shan Life Insurance Company (Nan Shan), established in 1963 and operating with a network of 24 branches and 450 agency offices, serves more than 4 million life insurance policy holders in Taiwan and is the third-largest life insurer in the country by total premiums.
AIG will sell its 97.57-per cent stake in Nan Shan the Hong Kong-based financial services firm, Primus Financial Holdings Limited, and iots consortium partner, China Strategic Holdings Limited, the Hong Kong Stock Exchange-listed investment company, for $2.15 billion.
''We are pleased to have found a buyer who shares our confidence in Nan Shan's bright future, and who has pledged to continue Nan Shan's commitment to its policyholders, agents, and employees, as well as to the people of Taiwan,'' said Robert Benmosche, AIG CEO.
In acquiring Nan Shan, the Primus Financial consortium has agreed to maintain the Nan Shan brand, the existing compensation and benefits package for employees and the existing agency organizational and commission structure for a minimum of two years following the closing of the transaction.
