Taishin Financial Holding Co (台新金控) yesterday announced it had agreed with Aegon to form a joint venture in Taiwan to explore the life insurance and pension market via Taishin Financial's network.
Taishin Financial will hold 51 percent and Netherlands-based Aegon 49 percent of the new insurer, which will have an initial capital of NT$2 billion (US$60.6 million).
The name of the joint venture has yet decided, but both sides expect the firm to start operations within one year, subject to final agreement, regulatory licensing and approval, Taishin Financial president Lin Keh-hsiao (林克孝) said during a press briefing yesterday.
With Taishin Financial chairman Thomas Wu (
Focus on insurance
The new joint venture will focus on insurance and distribute products through the extensive Taishin network, which includes Taishin International Bank (台新銀行), Taiwan Securities Co (台証證券), the Taishin Insurance Agency (台新保代) and Taishin Insurance Brokers (台新保經).
Taishin's businesses have a combined customer base of 4 million and a nationwide distribution network of 200 locations.
Under the terms of the deal, Aegon will also acquire approximately 2.5 percent of Chang Hwa Commercial Bank (彰化銀行) from Taishin Financial.
The financial services provider will have to divest the batch of more than 160 million shares before next Friday to comply with a February ruling of the Financial Supervisory Commission.
The commission made its decision in January after Taishin Financial and its banking unit failed to maintain their capital adequacy ratios above the required thresholds.
Shares of Chang Hwa bank yesterday closed up NT$0.05 at NT$19.15.
NT$24 per share
As Taishin Financial spent around NT$24 per share to buy 2.5 percent of the state-run lender since last June, it expected to book a loss of over NT$800 million in the second quarter, Lin said.
By acquiring a share of Chang Hwa Bank, the nation's eighth largest lender, Aegon expects to strengthen its cooperation with Taishin Financial, Liu said.
With Chang Hwa's 171 branches and 4.7 million customers nationwide, the joint venture will have a solid customer base of more than 8 million.
Aegon Taiwan, which received total gross premiums of NT$40 billion to occupy a 2.5 percent market share last year, distributes insurance products through 29 local banks it has signed deals with and through more than 700 agents. Aegon has more than 1 million customers nationwide.
Despite the establishment of the joint venture, Liu said Aegon Taiwan would remain an independent operation.
The deal was announced yesterday afternoon after the local bourse closed and before the Netherlands' stock market opened.
Shares of Taishin Financial closed down NT$0.15 at NT$16.55 on the TAIEX yesterday.
Between 2003 and last year, Taiwan's insurance market grew at an annual rate of 15 percent, the Life Insurance Association (
Growing popularity
Over the last several years, insurance products have grown more popular. Banks sold a total of US$2.3 billion in insurance products in 2003 and the figure jumped to more than US$5.6 billion last year, posting an average annual growth rate of 35 percent.
That made banks Taiwan's second largest insurance distribution channel, trailing only traditional insurance agencies.
Sweeping policy changes under US Secretary of Health and Human Services Robert F. Kennedy Jr are having a chilling effect on vaccine makers as anti-vaccine rhetoric has turned into concrete changes in inoculation schedules and recommendations, investors and executives said. The administration of US President Donald Trump has in the past year upended vaccine recommendations, with the country last month ending its longstanding guidance that all children receive inoculations against flu, hepatitis A and other diseases. The unprecedented changes have led to diminished vaccine usage, hurt the investment case for some biotechs, and created a drag that would likely dent revenues and
Global semiconductor stocks advanced yesterday, as comments by Nvidia Corp chief executive officer Jensen Huang (黃仁勳) at Davos, Switzerland, helped reinforce investor enthusiasm for artificial intelligence (AI). Samsung Electronics Co gained as much as 5 percent to an all-time high, helping drive South Korea’s benchmark KOSPI above 5,000 for the first time. That came after the Philadelphia Semiconductor Index rose more than 3 percent to a fresh record on Wednesday, with a boost from Nvidia. The gains came amid broad risk-on trade after US President Donald Trump withdrew his threat of tariffs on some European nations over backing for Greenland. Huang further
Macronix International Co (旺宏), the world’s biggest NOR flash memory supplier, yesterday said it would spend NT$22 billion (US$699.1 million) on capacity expansion this year to increase its production of mid-to-low-density memory chips as the world’s major memorychip suppliers are phasing out the market. The company said its planned capital expenditures are about 11 times higher than the NT$1.8 billion it spent on new facilities and equipment last year. A majority of this year’s outlay would be allocated to step up capacity of multi-level cell (MLC) NAND flash memory chips, which are used in embedded multimedia cards (eMMC), a managed
CULPRITS: Factors that affected the slip included falling global crude oil prices, wait-and-see consumer attitudes due to US tariffs and a different Lunar New Year holiday schedule Taiwan’s retail sales ended a nine-year growth streak last year, slipping 0.2 percent from a year earlier as uncertainty over US tariff policies affected demand for durable goods, data released on Friday by the Ministry of Economic Affairs showed. Last year’s retail sales totaled NT$4.84 trillion (US$153.27 billion), down about NT$9.5 billion, or 0.2 percent, from 2024. Despite the decline, the figure was still the second-highest annual sales total on record. Ministry statistics department deputy head Chen Yu-fang (陳玉芳) said sales of cars, motorcycles and related products, which accounted for 17.4 percent of total retail rales last year, fell NT$68.1 billion, or
RSS