Fubon Financial Holding Co (富邦金控) said yesterday it expects its insurance unit in Xiamen, China, to start operations by the end of this year.
“The China unit is doing the paperwork to register [in China],” a Fubon Financial spokeswoman said. “We expect it will become operational by the end of the year,”
The comment came after Fubon Financial announced on Monday that the China Insurance Regulatory Commission had given approval for the company to set up a unit in Fujian Province, which will be named Fubon Property & Casualty Insurance Co (富邦財產保險).
Fubon was the first Taiwanese insurer to gain regulatory approval in China to operate there since Taiwan and China signed the Economic Cooperation Framework Agreement (ECFA) in late June.
The Chinese unit is capitalized at 400 million yuan (US$59.57 million). Fubon Life Insurance Co (富邦人壽保險) and Fubon Insurance Co (富邦產物保險) — two Fubon Financial insurance subsidiaries — have equal ownership of the Xiamen unit.
Fubon Financial opened a preparatory office in Xiamen at the beginning of this year to pave the way for the China unit.
In a statement released on Monday, Fubon Financial chairman Daniel Tsai (蔡明忠) said that initially the unit will seek strategic alliances with Xiamen Bank (廈門商銀) and other financial institutions in Fujian for expansion.
Tsai said Fubon Financial plans to look beyond Fujian Province and will extend its reach to the huge Chinese market through life insurance and securities business cooperation with its Chinese counterparts.