Insurer Aviva exits Taiwan
British insurer Aviva said yesterday that it was withdrawing from Taiwan because it did not expect to meet group financial targets here.
The announcement came as the insurance company said that total sales of the group’s new policies rose by 6 percent in the first nine months of this year thanks to growth in Britain and elsewhere in Asia.
“We are exiting Taiwan as we do not believe we can meet our target financial returns in this market,” Aviva said in a trading statement.
However, it added: “We are well-positioned to continue strong growth in both volumes and margins in our Asia-Pacific business.”
Aviva’s new life and pensions sales reached ￡25.55 billion (US$41 billion) in the nine months to Sept. 30, compared with the equivalent period of last year.
“As we look to the next phase of our growth, Aviva will sharpen its geographic focus and deepen its position in its key markets through its strengths in both life and general insurance,” Aviva chief executive Andrew Moss said in the statement.
TAIEX dips on profit taking
The TAIEX closed down 0.42 percent yesterday on profit taking from Monday’s rally, with selling focusing on the bellwether electronics sector, dealers said.
The TAIEX fell 34.99 points to the day’s low of 8,344.76, off a high of 8,390.10, on turnover of NT$114.66 billion (US$3.76 billion).
The market opened up 0.31 points and rose to the day’s high on follow-through buying in during early morning trading, dealers said.
Investors turned cautious, however, and started to pocket profits as the index moved closer to strong technical resistance at around 8,400 points, they said.
A total of 2,507 stocks closed down, 1,416 rose, and 359 remained unchanged.
Ho Chi Minh unit approved
Cathay Century Insurance Co (國泰產險), the non-life insurance unit of Cathay Financial Holding Co (國泰金控), has won permission from Vietnam to operate a subsidiary located in Ho Chih Minh City, the parent company said in a statement yesterday.
The insurance company gained approval in May to set up the subsidiary, in line with Cathay Financial’s plan to tap into the fast-growing market.
Vietnam posted a 5.32 percent GDP growth last year despite the global financial crisis, the statement said.
Taiwanese businesspeople constitute the second-largest foreign presence in Vietnam and the insurer has established a representative office there since December 2007.
NT dollar closes down
The New Taiwan dollar fell against the US dollar yesterday, down NT$0.014 to close at NT$30.709.
Turnover totaled US$654 million during the trading session.
The NT dollar extended its strength during morning trading as further foreign funds flowed into the local market and a surprise interest rate hike by Australia’s central bank that boosted Asian currencies, including the NT dollar, dealers said.
However, a fall in the Taiwan Stock Exchange put some downward pressure on the NT dollar, while many investors started cutting their local currency holdings in afternoon trading to consolidate their recent gains, dealers said.
The central bank also made its presence in late trading by buying into the US dollar to prevent a quick rise in the NT dollar, they said.
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