Commission Allows Group to Buy AIG Taiwan Unit

July 15, 2011

Taiwan’s Financial Supervisory Commission says a local conglomerate has met conditions the commission stipulated in June to purchase AIG’s Taiwanese insurance unit, paving the way for final approval.

The Thursday announcement says that Ruen Chen consortium will be allowed to acquire AIG’s 97.6 percent stake in Nan Shan Life Insurance Co. after it demonstrated it can deposit NT$30 billion ($1.03 billion) in assets within 60 days.

Nan Shan is the third-biggest insurer in Taiwan.

The commission also determined that Ruen Chen has the ability to lower its debt gradually, another condition for the deal.

American International Group Inc. reached the $2.2 billion transaction with Ruen Chen in January as part of the group’s efforts to reduce U.S. government ownership.

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