Taishin Financial Holdings Co (台新金控), the nation's second-biggest issuer of credit cards, said it is interested in merging with local or foreign life insurance companies to strengthen the financial service company's product lineup while improving profitability.
Taishin Financial will put this proposal to a discussion during the shareholder meeting in the first half of this year, company supervisor Wu Tung-hsiung (
He did not elaborate on the possible merger targets.
Taishin Financial said late last month during an investor conference that it has targeted 20 percent year-on-year growth in after-tax revenues this year, part of which is expected to come from mergers and acquisitions.
The nation's seventh-largest financial service provider in terms of total assets is aiming for a NT$13.5 billion (US$434.9 million) profit this year, with a projected NT$3.19 earning per share.
Under Taishin Financial's plan, the proposed insurance unit will focus on product planning while its banking arm, Taishin International Bank (台新銀行), will act as a sales channel to save commission expenditures given to salespeople, which traditionally account for 90 percent of annual sales, Wu said.
The firm would therefore not require three to five years to break even as conventional life insurers usually do, he said.
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