The FINANCIAL -- Allianz Taiwan Life Insurance Co. Ltd. has reached an agreement with Taiwan Life Insurance Co. Ltd., headquartered in Taipei, Taiwan, to sell a traditional life insurance portfolio of Allianz Taiwan Life to Taiwan Life Insurance.
The sale is in line with Allianz’s strategy to actively manage its life portfolio while focusing on customer needs. Given the constraints placed on European insurers presented by Solvency II, Taiwan Life Insurance is in the better position to effectively manage the affected life insurance contracts. The deal includes an Allianz Taiwan Life portfolio with IFRS policy reserve liabilities of 1.2 billion euros (42.3 billion Taiwan new dollars) as of December 31, 2015. Some 80,000 policies are affected. Allianz Taiwan Life staff will not be impacted by the deal, according to Allianz.
Maximilian Zimmerer, member of the board of management of Allianz SE responsible for Insurance Asia Pacific, said, "The sale of this portfolio is in line with our efforts to focus on capital-efficient life insurance and our successful unit-linked products. We remain fully committed to Taiwan and the Asia Pacific region, and will strengthen our business by leveraging strategic partnerships and opportunities. Our customers and partners can continue to rely on Allianz's dedicated expertise and established service networks in Taiwan and across the region."
Allianz Taiwan Life was the largest multinational life insurance company in Taiwan by gross written premiums in 2015. Since entering the market in 1995, Allianz Taiwan Life has developed into a market leader in unit-linked life products, with an agency force of over 1,700 and a wide network of strategic bank partnerships. In 2015, Allianz Taiwan Life's new business value rose by a record 34 percent, driven by its outstanding customer service leadership and portfolio innovation.
Under this agreement, all related assets and liabilities of the respective portfolio will be transferred to Taiwan Life Insurance, with full protection of customer interests and rights.
This transaction is subject to regulatory approval as well as approval from the shareholders meeting of Allianz Taiwan Life. It is expected to close in the second half of 2016.