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Fitch Ratings-Taipei/Hong Kong-15 October 2009: Fitch Ratings has today said that American International Group Inc.'s (AIG) share disposal will have limited immediate impact on Nan Shan Life Insurance Company, Ltd.'s (Nan Shan, 'A+(twn)'/Negative) franchise. This is due to the acquirers' commitment to maintain the Nan Shan brand, and the existing management and agency organisational structure. According to AIG's announcement, the company has agreed to sell its 97.57% stake in Nan Shan for approximately USD2.15bn to a consortium comprising of Primus Financial Holdings Limited (a Hong Kong-based financial services firm) and China Strategic Holdings Limited (a Hong Kong listed investment company). The transaction is subject to the satisfaction of certain conditions, including the receipt of regulatory approval.
Should the transaction goes through, Fitch will review Nan Shan's credit profile, particularly the new ownership structure, business strategy and target capitalisation. Nan Shan's current National Insurer Financial Strength Rating of 'A+(twn)' reflects its moderate standalone capitalisation level, sound liquidity position and satisfactory underwriting result, compared to its local peers. (Please refer to the credit update of Nan Shan on 8 June 2009.)
Contacts: Joyce Huang, Jonathan Lee, Taipei, +886 2 8175 7600/
joyce.huang@fitchratings.com,
jonathan.lee@fitchratings.com.
Note to editors: Fitch's National ratings provide a relative measure of creditworthiness for rated entities in countries with relatively low international sovereign ratings and where there is demand for such ratings. The best risk within a country is rated 'AAA' and other credits are rated only relative to this risk. National ratings are designed for use mainly by local investors in local markets and are signified by the addition of an identifier for the country concerned, such as 'AAA(twn)' for National ratings in Taiwan. Specific letter grades are not therefore internationally comparable.
Media Relations: Karen Cho, Hong Kong, Tel: +852 2263 9935,
Email:
karen.cho@fitchratings.com.
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