Samuel Yin, the chairman of the Ruentex group of companies, said Wednesday he is confident Taiwan's regulators will approve 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 said Wednesday 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.

Yin, who owns supermarket operator Ruentex Development and cement-and-chemical fiber maker Ruentex Industries, said at a news conference Wednesday that Ruen Chen will hold its investment in Nan Shan for at least 10 years.

Footwear maker Pou Chen is controlled by C. J. Tsai, another local tycoon.

A listing of Nan Shan on the Taiwan stock exchange is a viable option in the future and would help support the Taiwan insurer's capital base, Andrew Borodach, AIG's assistant general counsel, said at the news conference.

Ruen Chen's bid is slightly above the US$2.15 billion offered last year by a consortium of two Hong Kong-based firms, Primus Financial Holdings Ltd. and China Strategic Holdings Ltd.

AIG accepted that offer but Taiwan regulators rejected the deal in August, citing concerns about China Strategic's financial strength and commitment to Nan Shan.

In AIG's second attempt to sell Nan Shan, Primus submitted a bid as part of a consortium with Taiwan Secom Co. (9917.TW) and Goldsun Development & Construction Co. (2504.TW). Chinatrust Financial Holding Co. (2891.TW), Cathay Financial Holding Co. (2882.TW) and Fubon Financial Holding Co. (2881.TW) also offered to buy the AIG unit.

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