Hundreds Protest AIG Sale Of Taiwan Unit

TAIPEI, Taiwan (AP) — More than 1,000 employees of an AIG-affiliated Taiwanese life insurance company protested Wednesday the sale of the unit, demanding the return of pension funds they fear could be lost in the deal.

The protest highlighted the difficulties AIG has encountered in completing the transaction, which is awaiting the approval of the Taiwan government.

AIG announced the sale of the Taipei-based Nan Shan Life Insurance Co. on Oct. 12 to an investor group led by Hong Kong's Primus Financial for about $2.15 billion.

The Taiwan government is examining the deal closely and has said it will reject it if it determines Chinese funds are involved. Taiwan law does not allow Chinese investment in the financial sector, including insurance companies. Taiwan and China split amid civil war in 1949, and the self-governing island is sensitive about losing control of its economy to Beijing.

Primus has denied having a Chinese sponsor.

In Wednesday's demonstration, Nan Shan employees voiced their objection to the transaction over fears they could lose their pensions. They say AIG is treating an internal pension fund of NT$14 billion ($433 million) as a Nan Shan asset to be sold off together with the unit, and demanded the money be returned.