Summary Box: Taiwan rejects Primus Holdings’ purchase of AIG life insurance unit

Summary Box: AIG’s sale of Taiwan unit on rocks

NO WAY: Taiwanese regulators have rejected Primus Financial Holdings’ planned purchase of AIG’s Taiwan life insurance unit.

WHY: Taiwan is concerned that the firm may be backed by funds from rival China. Taiwan law prohibits Chinese investment in the financial sector.

HISTORY: American International Group Inc. announced the $2.15 billion sale of the Taipei-based Nan Shan Life Insurance Co. in October 2009 to an investor group led by Primus. Since its 2008 U.S. government bailout, the New York-based insurer has twice tried to sell Nan Shan.