For Taishin FHC, the acquisition of Prudential of Taiwan marks its foray into the insurance sector
Prudential Financial to offload its Taiwanese life insurance business to Taishin FHC. (Credit: Prudential Financial, Inc.)
Prudential Financial has agreed to sell its life insurance business in Taiwan to Taishin Financial (Taishin FHC), a Taiwanese financial institution, for a base consideration of NT$5.5bn ($186.74m).
The business being divested is Prudential Life Insurance Company of Taiwan (Prudential of Taiwan or POT) which has been selling individual whole life and other protection products since 1989. The company caters to middle-market and affluent consumers through its life planners who are said to offer customised plans.
Prudential Financial said that the deal is in line with its focus internationally on Japan and higher-growth emerging markets across the world.
The deal will not involve PGIM, the group’s asset management business in Taiwan, which will remain active in the asset management sector through PGIM SITE.
Taishin FHC will enter into the insurance sector through the deal
For Taishin FHC, the deal marks its foray into the insurance sector, besides completing its universal banking strategy by adding a third pillar of growth to its current banking and securities businesses.
The deal also enables the Taiwanese financial services provider to offer customers a more comprehensive range of financial products and high-quality customer service by integrating its banking, securities, and insurance businesses.
Taishin FHC stated: “POT is a top-quality insurance company with over 30 years of operating track record in Taiwan. As the fourth-largest foreign-owned life insurance company in Taiwan by total assets, POT is a franchise which is prudently managed, has solid financial strength, strong persistency ratio, excellent after-sales service quality and focus on corporate social responsibility.”
Taishin FHC and Prudential of Taiwan are said to have been in a bancassurance partnership for several years.
The financial institution said that the rights of Prudential of Taiwan’s existing policyholders will not be impacted following the acquisition. Additionally, they can also get access to Taishin FHC’s financial products and customer service.
The closing of the deal is subject to receipt of regulatory approvals and meeting of other customary closing conditions.