Hours after Union Insurance Co (友聯產險) president Frank Wang (王事展) was detained by prosecutors yesterday, the insurer called a press conference to reassure clients that its operations and financial status remained healthy and policyholders' rights and interests would be protected.
"There's no problem at all with our capital adequacy ratio and cash flow. There might be some difficulties with our shareholders, but our business is still strong and stable," said Samuel Yu (喻志鵬), acting president of one of the nation's top three property insurers.
Union is one of many company affected by the fallout from the Rebar Group scandal.
Frank Wang, the younger brother of Rebar Group chairman Wang You-theng (王又曾), was detained yesterday morning on suspicion of breaching the Securities and Exchange Law (證券交易法).
Seeking to allay public concern, Kenny Ching (
"We are confident we can weather this storm. Our 3 million customers' interests are secure," he said.
The company said that its working capital was sufficient, including NT$5.9 billion of business reserves and NT$5.6 billion of shareholders' equity. Union has a risk-based capital (RBC) of 647 percent, far higher than the 200 percent threshold mandated by law, it said.
Wang Ming-chin (王敏欽), chief of the company's fire insurance department, said it has yet to receive any notice from Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), Powerchip Semiconductor Corp (力晶) and Mosel Vitelic Inc (茂矽) that they were planning to switch insurers as reported by the local media.
The insurer also said it booked losses of NT$52.8 million in the third quarter of last year from its investment in Asia Pacific Broadband Telecom Co (亞太固網). It owns 0.46 percent, of Asia Pacific Broadband.
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