American International Group Inc. said Friday that a Taiwan subsidiary had agreed to buy Central Insurance Co. Ltd. of Taiwan through a share swap valued at $183 million to $187 million.
In addition, the Taiwan subsidiary, AIG Direct Marketing Co., and one of Central Insurance's major shareholders, Polaris Securities Co. Ltd., are expected to make a distribution agreement for Central Insurance products in the Taiwan market.
Once the deal closes, which is expected in the third quarter, AIG's two general insurance operations in Taiwan would be the third-largest general insurance practice in the market in terms of direct gross premiums written, the New York insurance giant said.
Central Insurance, founded in 1962, is ranked sixth in Taiwan's domestic general insurance market, with more than $216 million of gross written premiums and 900 employees.
