August 19, 2011

AIG announced that it has reduced the remaining liquidation preference of preferred interests that the U.S. Department of the Treasury holds in AIA Aurora LLC to approximately $9.3 billion by applying the proceeds of approximately $2 billion from the sale of Nan Shan Life Insurance Company, Ltd.

AIG closed the sale of Nan Shan, its Taiwan-based life insurance company, to Ruen Chen Investment Holding Co., Ltd. (“Ruen Chen”), a company owned 80 percent by the Ruentex Group and 20 percent by Pou Chen Corporation, for $2.16 billion in cash.

“We continue to make progress in helping the Treasury and taxpayers recoup their investment in AIG,” comments AIG President and Chief Executive Officer Bob Benmosche. “We are pleased to have completed the sale of Nan Shan to Ruen Chen – a great result for American taxpayers, for AIG and for Nan Shan’s policyholders, employees and agents.”

ABOUT THE AUTHOR
Anthony O'Donnell has covered technology in the insurance industry since 2000, when he joined the editorial staff of Insurance & Technology. As an editor and reporter for I&T and the InformationWeek ...