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American International Group is to sell its Taiwan life insurance unit for $2.15 billion, marking the largest disposal since a U.S. government bailout saved the insurer from collapse last year.

The sale of Nan Shan Life on Tuesday was another step in AIG’s effort to repay U.S. taxpayers after the government injected $80 billion into the company, but the insurer faces two more sales processes in Asia and others across the globe.

The sale is to two little-known buyers — a start-up financial group run by a former Citigroup banker and an obscure, publicly traded Hong Kong holding company with a market value of $111 million.

“It (deal) has to be approved by Taiwan’s investment commission first,” said Lee Chi-Chu, vice chairperson of the Financial Supervisory Commission, adding the regulator has not received an application from AIG. “We have told AIG that we do not welcome investors backed by China fund,” she said.

Taiwan’s business ties with China have picked up since President Ma Ying-jeou took office last year.

The agreement will likely to bring a sigh of relief to the AIG camp as, at one point, it looked liked the process would not succeed.

Primus Financial, the firm founded by Citi’s former Asia investment banking head, together with China Strategic Holdings, are to buy Nan Shan Life, ending a five-month auction that involved private equity firms and local financial groups.

Nan Shan, a top three Taiwan insurer, has assets of $46 savings account payday loans.4 billion and employs 36,000 sales agents in Taiwan and has a market share of 10 percent with its 4 million customers.

Primus will own around 20 percent of the business and China Strategic 80 percent, according to the companies.

The sale allows AIG to check one business off its list of units to sell in fund-raising efforts.

Hong Kong-based life insurer AIA is seeking a more-than $2 billion initial public offering and sources said American Life Insurance Co, which generates half its revenue in Japan, could fetch $5 billion in an IPO. [ID:nN08285471]

Both companies have also attracted acquisition interest, though nothing has materialized yet.

China Strategic, whose businesses include battery production and securities investments, had said it planned to raise about HK$7.8 billion ($1.0 billion) to fund a possible joint acquisition.

“The deal priced Nan Shan at about 1 time price to book, which is fair when you compare 1.9 times for Cathay Financial and Fubon Financial, and 1 time for smaller rival Shin Kong Financial,” said Dexter Hsu, an analyst at JP Morgan in Taiwan.

An executive from Deutsche Bank, which is Primus’s financial advisor, told Reuters that Primus would be using bank loans to pay up to 35 percent of the $2.15 billion. 

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