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Decision on asset transfer in FSC’s hands: Nan Shan

Nan Shan Life Insurance Co (南山人壽), a local subsidiary of American International Group Inc (AIG), said yesterday it would not transfer its assets to its US parent company without the Taiwanese regulator’s approval.

The insurer said it had offered a short list of “four promises” to the Financial Supervisory Commission (FSC) to ensure the interests of its policy holders, after AIG on Friday announced plans to sell off “non-core” assets, including a chunk of its foreign life insurance business, to repay a US government rescue loan.

Apart from the pledge on asset transfers to AIG, Nan Shan said it would notify the commission immediately in case of any development that might harm the interests of its policyholders, the company said in a statement released yesterday.

“The company’s operations are normal and the rights and interests of policyholders remain intact,” Nan Shan vice president April Pan (潘玲嬌) said in the statement.

Earlier last month, hundreds of people crowded the offices of Nan Shan around Taiwan to terminate their policies after AIG agreed to turn over control to the US government.

To further strengthen policyholders’ confidence in the company, which is 95 percent owned by AIG, Nan Shan has agreed to place its assets under the government’s custody, with the exception of certain funds necessary for daily operations, chairman Edmund Tse (謝仕榮) said in the statement.

The insurer has agreed to use the assets only after obtaining the regulating agency’s approval, Tse said.

While Nan Shan called in accountants to conduct a due diligence check of the company’s financial state tomorrow, the Financial Supervisory Commission said yesterday it would also send its own people to help facilitate the assessment.

The commission said it would pay close attention to Nan Shan’s financial and business situation and would take appropriate action when necessary.
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