Tue, Jul 29, 2014 - Page 13 News List

Farglory Life Insurance aims to list in 2016

By Crystal Hsu  /  Staff reporter

Farglory Group chairman Chao Teng-hsiung, second right, who was released on bail on Friday last week, reports to a police precinct in Taipei yesterday as part of his bail conditions.

Photo: Fang Pin-chao, Taipei Times

Farglory Life Insurance Co (遠雄人壽) aims to seek primary listing in the local stock market in 2016 and grow its assets to NT$500 billion (US$16.68 billion) in 2019 after doubling its net income in the first six months of the year.

The insurer, a member of Farglory Group, posted a net profit of NT$3.57 billion in the January-to-June period, more than double its level a year ago, company data showed.

The figures translated into earnings per share (EPS) of NT$2.87, making it the third-best performer among its peers, the company said.

Farglory Life vice president Joni Ho (何京玲) attributed the earnings growth to investments in fixed income assets and property development.

“Property investments from the past generated 70 percent of the first-half income with stakes in different financial assets at home and abroad also recording gains,” Ho said by telephone.

The insurer expects to post EPS of NT$4.55 for this year and is going ahead with its plans to list in 2016, Farglory Life chairman Tu Chung-sheng (屠仲生) said.

“The company has drawn up a six-year development plan with a view to growing its assets to more than NT$500 billion, from the current NT$313.5 billion, topping its peers in terms of profitability,” Tu said.

To that end, the insurer plans to expand its product lines and sales channels to meet customer demand and boost revenue, Tu said.

The company will also expand its sales force and focus on protection-type insurance policies given the nation’s fast-aging population, Tu said.

Farglory Life has a capital adequacy ratio of above 250 percent and 1.2 million insurance policies sold through 50 business units and more than 100 partners nationwide, the company said.

The insurer has underscored its financial independence from the conglomerate after group chairman Chao Teng-hsiung (趙藤雄) became embroiled in a bribery scandal, leading to his nearly two-month detention until Friday last week.

Chao told reporters yesterday that former Taoyuan County deputy commissioner Yeh Shih-wen (葉世文) asked for the bribe in return for an urban renewal contract in the county.

Chao claimed that if he refused to cooperate, his construction company would not be able to win the urban renewal project and would be allowed to participate in the Taoyuan Aerotropolis (桃園航空城) project.

Farglory Group’s other major subsidiaries include Farglory Land Development Co (遠雄建設), Farglory Hotel (遠雄悅來飯店), the Farglory Free Trade Zone (遠雄自由貿易港區), Taiwan Solar Energy Corp (元晶太陽能) and Golden Biotechnology Corp (國鼎生物科技).

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