Nan Shan Life Insurance Co., the Taiwan life-insurance unit of American International Group Inc. (AIG), said Thursday there is "a good chance" that the island's financial regulator will approve Ruenchen Investment Holdings Ltd.'s bid to acquire the insurer.

AIG agreed in January to sell Nan Shan for US$2.16 billion to Ruenchen, a consortium that comprises Ruentex Development Co. (9945.TW), Ruentex Industries Ltd. (2915.TW) and Pou Chen Corp. (9904.TW).

The deal, which is subject to regulatory approval, marked the U.S. insurer's second attempt to offload its Taiwan unit and raise funds to repay the money it owes the U.S. government following a bailout during the financial crisis.

"Everything we heard is that there is a good cooperation between Ruenchen and the regulator," Richard Bender, chief executive of Nan Shan Life, told reporters on the sidelines of a charity event.

"The deal should be done and approved quickly," Bender said, adding "I don't think we will go through it for the third time if the deal falls through again."

In late March, Taiwan's Financial Supervisory Commission set some additional requirements for the proposed takeover in its continuing review of the proposed sale. It said Ruenchen should place NT$30 billion in cash or equivalent assets in a custodian account to show it has the financial means to run the insurer.

It also asked Ruenchen to place all of its shares in Nan Shan in a trust for 10 years to ensure its "long-term commitment" to the insurer, and to appoint a new president of Ruenchen with experience in the insurance industry to oversee the insurer's operations.

The consortium's relative lack of industry experience raised concerns at the regulator, which blocked an earlier Nan Shan sale to a Hong Kong consortium on the grounds it lacked financial strength and commitment to Nan Shan.

-By Aries Poon, Dow Jones Newswires; 886-2-25022557; aries.poon@dowjones.com