Hotai Motor Co (和泰汽車), the nation’s leading car dealer, yesterday announced that its board of directors has approved plans to acquire a 99.73 percent stake in Zurich Insurance (Taiwan) Ltd (蘇黎世產險) for NT$6.4 billion (US$197.62 million).
The deal is to be conducted through a wholly owned subsidiary, He-zan Investment Corp (和展投資), Hotai told a press conference at the Taiwan Stock Exchange after the stock market closed.
The company plans to first inject NT$6.9 billion in cash to He-zan Investment to help fund the stake acquisition, Hotai said.
Pending regulatory approval, the deal is expected to be completed on Jan. 1 next year, Hotai said.
“We expect the expansion into the insurance segment to generate long-term growth momentum by providing customers with a full line of automobile-related products and services,” Hotai spokesman Fred Hsieh (謝富來) said.
“In addition, we aim to expand our new venture into a full-fledged general insurance company, offering comprehensive products including personal and commercial policies, as well as car insurance,” Hsieh said.
Although the company has collaborations with local leading general insurers, it aims to increase the proportion of car insurance policies sold by its own affiliates to higher than 50 percent, he said.
Hsieh said that Hotai, which operates Toyota and Lexus dealerships in the nation, hopes to snap up 15 percent of the local car insurance market, aided by its steady one-third share of the local car market.
In the first five months of the year, Hotai sold 55,694 cars in Taiwan, with a market share of 31 percent, according to data compiled by local motor vehicle offices released earlier this month.
Expanding beyond car insurance will allow its new venture to diversify premium streams and reduce operating risks, Hsieh said, adding that Hotai’s earnings and debt utilization have remained on track.
Zurich Insurance holds a 1.47 percent market share of Taiwan’s car insurance market, and the interest of its 700 employees and current policy holders will be preserved following the completion of the deal, Hsieh said.
However, the deal would mark the exit of the Swiss insurer from the local market.
Financial Supervisory Commission Vice Chairman Kuei Hsien-nung (桂先農) said that financial regulators are not especially concerned about the business strategy of foreign insurance companies, while the commission’s Insurance Bureau said that the Swiss insurer had already pulled out from Singapore and the Middle East.
Hotai Motor’s current affiliates include Ho-an Insurance Agency Co (和安保險代理人), company data showed.
Meanwhile, Tokio Marine Newa Insurance Corp (新安東京海上產險), which is 51 percent owned by Yulon Motor Co (裕隆汽車), derives 30 percent of its auto insurance sales from its major stakeholder, company data showed.
DIVIDED VIEWS: Although the Fed agreed on holding rates steady, some officials see no rate cuts for this year, while 10 policymakers foresee two or more cuts There are a lot of unknowns about the outlook for the economy and interest rates, but US Federal Reserve Chair Jerome Powell signaled at least one thing seems certain: Higher prices are coming. Fed policymakers voted unanimously to hold interest rates steady at a range of 4.25 percent to 4.50 percent for a fourth straight meeting on Wednesday, as they await clarity on whether tariffs would leave a one-time or more lasting mark on inflation. Powell said it is still unclear how much of the bill would fall on the shoulders of consumers, but he expects to learn more about tariffs
NOT JUSTIFIED: The bank’s governor said there would only be a rate cut if inflation falls below 1.5% and economic conditions deteriorate, which have not been detected The central bank yesterday kept its key interest rates unchanged for a fifth consecutive quarter, aligning with market expectations, while slightly lowering its inflation outlook amid signs of cooling price pressures. The move came after the US Federal Reserve held rates steady overnight, despite pressure from US President Donald Trump to cut borrowing costs. Central bank board members unanimously voted to maintain the discount rate at 2 percent, the secured loan rate at 2.375 percent and the overnight lending rate at 4.25 percent. “We consider the policy decision appropriate, although it suggests tightening leaning after factoring in slackening inflation and stable GDP growth,”
Greek tourism student Katerina quit within a month of starting work at a five-star hotel in Halkidiki, one of the country’s top destinations, because she said conditions were so dire. Beyond the bad pay, the 22-year-old said that her working and living conditions were “miserable and unacceptable.” Millions holiday in Greece every year, but its vital tourism industry is finding it harder and harder to recruit Greeks to look after them. “I was asked to work in any department of the hotel where there was a need, from service to cleaning,” said Katerina, a tourism and marketing student, who would
i Gasoline and diesel prices at fuel stations are this week to rise NT$0.1 per liter, as tensions in the Middle East pushed crude oil prices higher last week, CPC Corp, Taiwan (台灣中油) and Formosa Petrochemical Corp (台塑石化) said yesterday. International crude oil prices last week rose for the third consecutive week due to an escalating conflict between Israel and Iran, as the market is concerned that the situation in the Middle East might affect crude oil supply, CPC and Formosa said in separate statements. Front-month Brent crude oil futures — the international oil benchmark — rose 3.75 percent to settle at US$77.01
RSS