American International Group (AIG) and SinoPac Financial Holding Co. (2890.TW) will terminate a bancassurance cooperation following recent structure and strategy changes at AIG, SinoPac said Friday.

The cooperation began in May 2007 and focused on pension products. It will be replaced by a new pact between SinoPac Financial's wholly owned Bank SinoPac and AIG's Taiwan unit, Nan Shan Life Insurance Co., SinoPac Financial said in a statement.

Bank SinoPac and Nan Shan, 95%-owned by AIG, will sign a new agreement later this month, said Ted Liao, SinoPac Financial's spokesman.

-By Perris Lee Choon Siong, Dow Jones Newswires; +8862-2502-2557; perris.lee@dowjones.com