Nan Shan keeps focus on healthy financial profile

In line with its philosophy of refraining from taking unnecessary risks, Nan Shan does not focus on bancassurance, a combination of banking and insurance services, although this approach can quickly boost an insurer's market share, he added.

Tse said bancassurance was a short-term business as banks turn short-term savings into insurance products when interest rates are low. But when rates bounce back, it will be difficult to profit from this segment and could even lead to losses, Tse said.

As part of its business diversification, AIG has bought nearly 20 percent of Far Eastern Air Transport Corp (遠東航空), eyeing the potential opening of direct flights with China.

Although AIG owns a plane rental firm based in Los Angeles, it is not considering raising its stake in Far Eastern Air, citing huge differences in the two segments.