CTBC Financial, the parent company of Chinatrust Commercial Bank, has announced plans to acquire the local insurance firm Taiwan Life in a TWD26.6bn ($904m) deal.

As per the terms of the agreement, CTBC will take over the insurance firm through a share swapping arrangement.

In a statement, the two companies said that each share of Taiwan Life will be exchanged for 1.44 shares in CTBC Financial.

CTBC stated that it will issue new shares for the transaction, adding that the deal will not affect the existing policy subscribers of Taiwan Life.

The company would retain all of the Taiwan Life’s employees with their compensation packages and work assignments remaining same for the next two years.

With this acquisition, CTBC is expected to position itself among the ten leading insurance carriers in Taiwan. CTBC and Taiwan Life are set to hold a shareholders’ meetings on 20 December to approve the merger.

In a separate deal, the credit card issuer announced plans to acquire 98.16% stake in Tokyo Star Bank for JPY52bn.