Taiwan based underwriter TransGlobe Life Insurance (TGL) has emerged to be the winning bidder to acquire ailing Kuo Hua Life Insurance Co from the Taiwan government after reaching an agreement.

Under terms of the deal, The Taiwan Insurance Guaranty Fund (TIGF) will pay NT$88.4bn ($3bn) to TGL and the facilities and benefits of more than 1 million policyholders of Kuo Hua Life will remain unaffected.

TGL was preferred against Chinatrust Life Insurance Co, Taiwan Life Insurance Co and Mercuries Life Insurance Co.This is the third auction attempt by the Financial Supervisory Commission (FSC) to sell Kuo Hua Life.

Established in 1963, Kuo Hua Life has been placed in government receivership, when its major shareholders failed to provide requisite capital to comply with the risk-based capital (RBC) requirement intended for life insurance firms.

It employs approximately 4,000 staff, including 3,000 sales personnel across Taiwan and as of the end of March 2012, the company’s net asset was estimated at negative NT$74.62bn ($2.56bn).

Once branded as AEGON Life of the AEGON Group, TGL began offering professional insurance planning services and products in 1994.