American International Group (AIG) has entered into an agreement to sell its 97.57% interest in its Taiwan unit Nan Shan Life Insurance to Ruen Chen Investment Holding, for $2.16bn in cash.
Ruen Chen Investment Holding is a company owned 80% by the Ruentex Group, the Taiwan-based conglomerate, and 20% by Pou Chen, a footwear manufacturer listed in the Taiwan Stock Exchange.
According to the AIG, the purchase agreement includes a number of commitments, including an agreement to maintain the existing compensation and benefits package for employees and the existing agency organizational and commission structure.
Ruen Chen has also expressed its intention to retain the current Nan Shan management team, as well as its long-term commitment to maintain both its majority ownership in Nan Shan and the Nan Shan brand, AIG said.
AIG president and CEO Robert Benmosche said that Ruen Chen offers strong operational and funding capabilities and possesses a clear ability to satisfy the strict criteria that governed AIG’s bid review process.
"Consistent with these criteria, Ruen Chen has demonstrated that it is able and willing to invest in Nan Shan’s future, and that it will protect and serve the best interests of Nan Shan’s policyholders, employees and agents," Benmosche said.
Debevoise & Plimpton and Lee & Li, Attorneys-At-Law served as legal advisors to AIG on this transaction.
The transaction is subject to the receipt of regulatory approval.