Taiwan: Regulator revises stock listing rules for insurers
Source: Asia Insurance Review | Oct 2018
The Financial Supervisory Commission (FSC) has revised stock listing eligibility criteria for insurance companies, which is to be based on applicants’ profitability, repayment capacity and liquidity, as well as their regulatory compliance track record.
The revision is aimed at establishing a standardised set of criteria to provide all applicants with a transparent and consistent pathway toward being listed on the Taiwan Stock Exchange (TWSE) and the Taipei Exchange (TPEX), reported The Taipei Times.
Notably, the revision tightens real estate investment requirements for insurers, with applicants barred from allocating more than 10% of their investable capital in real estate.
The FSC would assess each applicant on a case-by-case basis, and approvals might be granted if companies provide sufficient explanations and demonstrate the ability to improve on their shortcomings, Insurance Bureau director-general Shih Chiung-hwa said.
Applicants’ net worth-to-assets ratio must be less than 6.5% for those wanting to list on the Emerging Stock Board, while the requirement is 7% for those looking to be listed on the TWSE or the TPEX.
As for liquidity and repayment capacity, applicants must maintain a risk-based capital ratio of 200% if they wish to gain listing on the Emerging Stock Board, with the requirement raised to 250% for those seeking to be listed on the TWSE or TPEX.
Among other terms and conditions, applicants must also not have been involved in a major infraction in the prior three years that resulted in a fine of more than NT$1m ($32,500).
Applicants must also not be involved in major labour disputes. The FSC would consult with the Ministry of Labour on related disputes. A