Allianz Taiwan Life Insurance has agreed to sell a portion of its traditional life insurance portfolio to
China Life Insurance (Taiwan).
The move is part of Allianz’s strategy to actively manage its life portfolio in the Taiwanese market and make it more capital-efficient. The transaction involves around 78,000 policies with a guaranteed interest rate of 4% or higher and combined IFRS policy reserves of NTD42.1 billion (US$1.39 billion). Once the deal is closed, it is expected to have a positive impact on the group’s Solvency II capital position.
According to Allianz, there will be no reduction of workforce in Taiwan in connection to this transaction.
George Sartorel, Allianz’s regional CEO for Asia-Pacific, commented: “With its strong balance sheet and track record in acquiring and integrating policies and policyholders, we believe China Life is the ideal candidate to take over this portfolio. Allianz remains fully committed to Taiwan, and this transaction is consistent with our priorities to serve customers with our core unit-linked and protection solutions.”
China Life, which has no business association with the Beijing-based insurer that goes by the same name, will receive all related assets and liabilities of the respective portfolio, with full protection of customer interests and rights. Pending approval of China Life’s shareholders and Taiwanese regulators, the deal is expected to complete in mid-2018.
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