Mercuries Life Insurance Co (三商美邦人壽) is considering options including a sale of the business, people familiar with the matter said, in what could mark further consolidation in the nation’s financial services industry.
The firm is working with advisers to gauge initial interest from prospective local and international buyers, the people said.
Shares in Taipei-listed Mercuries Life have dropped 17 percent this year, giving it a market value of about US$1 billion.
Photo: Wu Hsin-tien, Taipei Times
Another option could be selling a stake rather than the whole business, the people said, adding that considerations are preliminary and might not lead to a transaction.
Mercuries Life has been in the crosshairs of the Financial Supervisory Commission, which says the firm contravened rules after failing to implement a plan to improve its capital adequacy ratio.
It’s been told to complete the process by the end of this year and provide more details before the end of the month.
Mercuries Life said it aims to enhance capital and seek potential partnerships at home or abroad, and takes all options into consideration.
While the company is open to proposals from overseas, Chinese bidders are less likely, as they would need approval from multiple government agencies, which could block deals in sensitive sectors such as the financial industry on national security grounds.
Taiwan has been trying to lift the financial industry to make the economy less reliant on the technology sector.
Other major transactions in this industry include a merger between Taishin Financial Holding Co (台新金控) and Shin Kong Financial Holding Co (新光金控), completed last month, while Fubon Financial Holding Co (富邦金控) acquired Jih Sun Financial Holdings Co (日盛金控) in 2022.
Founded in 1993 and listed in 2012, Mercuries Life provides products including life, health, accident and other types of insurance, according to its Web site.
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