CTBC Financial Holding, the island’s fourth largest financial company, has acquired Taiwan Life Insurance in a deal valued at NT$32 billion (US$1 billion). The life insurer will become a wholly-owned subsidiary of the Taipei-listed financial conglomerate.
CTBC Financial said that the acquisition aims to expand business scale, enhance competitive advantage and leverage on consolidation of business and that the consolidated brand image, client bases and cross-selling channels will generate greater benefits and expand to non-life and capital business.
Taiwan Life was established in 1947 as the first life insurance company in Taiwan. According to A.M. Best, Taiwan Life reported gross written premium of NT$54.4 billion and profit after tax of NT$477.3 million in 2013. Its total assets amounted NT$444.6 billion in 2013. And CTBC Life, an insurance arm of CTBC Financial, reported gross written premium of NT$67.7 billion and profit after tax of NT$424.4 million in 2013. Its total assets amounted NT$224.6 billion in 2013.
CTBC Life is expected to become the island’s sixth largest life insurer by assets and fourth largest by premium after the acquisition.