AIG establishes securities firm in Taiwan

June 18, 2007

Holding an optimistic outlook for the Taiwan market, American International Group (AIG), one of the world's leading insurance and financial services companies, has received recently received approval from the Financial Supervisory Commission (FSC) to establish a securities firm in Taiwan.

The FSC gave the green light in mid-May for AIG's Switzerland-based subidiary, AIG Private Bank Ltd, to establish AIG Securities Investment and Trust Co. Ltd.  To date, AIG has remitted USD 200 million in funds for the new venture, and is expected to bring in between USD 600 to 700 million in the next three years -- a sign that the company is looking to compete in Taiwan's private banking and wealth management sectors.

Current AIG Investment Corp. Chairman Mark Wei has been chosen to serve as CEO, according to the Economic Daily News.

AIG's move has been a rare exception as intense market competition in recent years has resulted in a increasing mergers among securities companies in Taiwan, leading to an overall decrease in the number of securities firms said an FSC official.  AIG's entrance into the securities market shows that foreign companies have confidence and hold an interest in Taiwan's capital markets, said the official.

AIG's securities branch in Taiwan, the first Swiss company in Taiwan to engage the private banking sector, will mainly concentrate on wealth management services, said Mark Wei.

The AIG Global Investment Group regards Taiwan as the most important market for wealth management, which prompted the company's decision to open a securities firm, according to Wei. With the founding of AIG Securities, AIG now offers complete asset management services in Taiwan, he said.

The AIG Group in Taiwan has operated mainly in four areas -- insurance, retirement funds, asset management, and consumer finance (credit cards).  AIG Securities will promote its services through a cooperative venture with sister company Nan Shan Insurance, said the Economic Daily News.

(Economic Daily News)

E-mail this page.