AIG close to Nan Shan sale

AIG is close to selling Nan Shan, its Taiwanese life assurance unit, for more than $2bn (&pound;1.26bn). It is understood that the New York-based insurer could make an announcement regarding the sale as early as this week, with either financial conglomerate Chinatrust or Hong Kong-based investment fund Primus Financial the likely new owner.<br /><br />AIG is selling its assets as part of a reorganisation plan to repay more than $80bn in US bailout loans extended last year, when the insurer nearly collapsed under the weight of mortgage-related derivative losses.<br /><br />The sale would be the biggest divestment made by AIG since the sell-off began last year, with the $2bn sale of Zurich Financial Services running a close second.<br />The battle to buy Nan Shan, Taiwan&rsquo;s third largest insurer, could hinge on the winner agreeing to conditions set out by AIG that are said to include a guarantee on employee pension funds and maintaining service standards. Nan Shan is also thought to want AIG to guarantee employee retirement funds and any future debt.