TAIPEI: American International Group said Tuesday it will sell its Taiwan unit to Hong Kong-based Primus Financial Holdings for 2.15 billion US dollars.

Primus beat several rivals for Nan Shan Life, the island's second-largest life insurer, including Taiwan's Chinatrust Financial Holding.

Analysts pointed out the cost is only about 70 percent of Nan Shan's net value, which totalled 99.6 billion Taiwan dollars (3.1 billion US dollars) in May.

"It's definitely a good bargain," said Mars Hsu, a Taipei-based analyst with Grand Cathay Securities.

Primus Financial will keep the Nan Shan management team and has also promised not to change its brand or the existing compensation and benefits packages, AIG said in a statement.

"We aim to develop Nan Shan into a leading Taiwan-based, pan-Asian financial services company," Primus Chairman Robert Morse said, according to Dow Jones Newswires.

"Nan Shan's management team, agents, and employees are an integral part of this vision."