‘Financial strength’ key for Prudential buyer: FSCCAPITAL ADEQUACY: Some financial firms would like to acquire a foreign insurer for new profit momentum, but it comes with greater pressure, an academic saidBy Kao Shih-ching / Staff reporterThe Financial Supervisory Commission (FSC) on Wednesday said that it would scrutinize the financial health of the buyer of Prudential Life Insurance Co of Taiwan (保德信人壽) after local media reported that potential buyers submitted bids on Monday. Financial strength is critical as local life insurers must adopt International Financial Reporting Standards 17 in five years, which have stricter rules on the calculation of liabilities, the official said. The commission rejected Taishin Financial Holding Co’s (台新金控) application to acquire New York Life Insurance Taiwan Corp (紐約人壽) in 2013, and turned down IBF Financial Holdings Co’s (國票金控) application to acquire MetLife Taiwan Insurance Co (大都會人壽) in 2010, the official added. The Chinese-language Economic Daily News reported that First Financial Holding Co (第一金控) and Union Bank of Taiwan (聯邦銀行) had participated in the tender. Prudential Life Insurance Co of Taiwan, which began operations in 1990, has 700 sales personnel and 300 employees.

Source: Taipei Times June 04, 2020 15:56 UTC