Taiwan's Financial Supervisory Commission said Wednesday it will cautiously review Ruen Chen Investment Holdings Ltd.'s US$2.16 billion bid for Nan Shan Life Insurance Co., the Taiwan life insurance unit of American International Group Inc. (AIG).

AIG had discussed with the FSC several times about the requirements of a potential buyer, and AIG should fully understand the FSC's stance on the five principles it uses to arrive at a decision, the FSC said in a statement.

The financial regulator has reiterated that it will review the deal based on five principles, including the buyer's source of funding, the buyer's willingness to run Nan Shan for the long term, and whether the buyer has the expertise to run a life insurance firm.

AIG said earlier today it had picked Ruen Chen, a consortium comprising Ruentex Development Co. (9945.TW), Ruentex Industries Ltd. (2915.TW) and Pou Chen Corp. (9904.TW), to buy Nan Shan for US$2.16 billion, although the deal still requires regulatory approval.

Samuel Yin, the chairman of the Ruentex group of companies, said that he is confident Taiwan's regulators will approve Ruen Chen's bid for Nan Shan.

-By Fanny Liu, Dow Jones Newswires, +886 25022557, fanny.liu@dowjones.com