Prudential to sell insurance via E. Sun

After acquiring a 5 percent stake in E. Sun Financial Holding Co (玉山金控), Prudential Corp Asia said yesterday that it will soon launch insurance products via the lender's distribution network.

"We're very confident in E. Sun's performance, profitability, reputation and banking strength, which will make our strategic alliance a very strong partnership," Prudential's chief executive, Mark Norbom, said yesterday after the partnership's signing ceremony.

He added that Prudential will provide banking insurance expertise with E. Sun to jointly expand the lender's strength in the insurance business, reaffirming the largest British insurer's commitment to Taiwan since its entry to local financial markets in 1999.

Norbom, however, said that the British insurer's share-swap deal with E. Sun is a stand-alone investment and it's too early to tell whether it will increase its stake in the future.

The deal is worth NT$2.7 billion (US$81 million), based on E. Sun's closing share price last Friday, Norbom said. E. Sun shares were unchanged yesterday at NT$22.10 on the TAIEX.

E. Sun chairman Huang Yung-jen (黃永仁) said that the financial service provider will continue to seek further consolidation through mergers and acquisitions in the near future.