Taiwan regulators have delayed the $US2.15 billion ($2.46 billion) sale of AIG subsidiary Nan Shan Life in the latest impediment to the American insurer’s progress in selling non-core assets.

Regulators have imposed a three-month delay on completion of the sale, with the consortium buying the company agreeing to a new settlement date of October 12.

It’s understood the sale has stalled because of political sensitivities among Taiwanese regulators about the consortium’s links with China.

It comes just three weeks after the cancellation of a proposed $US35.5 billion ($40.6 billion) sale of AIG’s Asian life unit AIA to UK-based Prudential.

AIG agreed the sale of Nan Shan in October last year in a deal with the consortium, made up of Hong-Kong-based financial services company Primus Financial Holdings and investment company China Strategic Holdings.

Nan Shan is the third-largest life insurer in Taiwan, with 4 million policyholders.