American International Group has agreed to sell its Taiwan insurance unit Nan Shan to a group led by Ruentex for $2.16 billion, sealing a sale at the second time of asking and giving it more cash to repay its U.S. government bailout.

AIG has been trying to sell Nan Shan, Taiwan's third-largest insurer, for over a year. An earlier $2.15 billion bid was blocked by regulators in August.

Ruentex is a major player in the hypermarket business in China and Taiwan.

(Reporting by Taipei bureau)