‘NO GOOD TARGETS’: Company president Magi Chen said that it would keep looking for suitable targets, but is conservative after interest rates were cut globally

Taipei Times
Date: Aug 19, 2020
By: Kao Shih-ching / Staff reporter

E.Sun Financial Holding Co (玉山金控) yesterday said that it would evaluate whether to acquire an insurance company given the challenge of making a profit in a low-interest rate environment and the implementation of new international accounting standards by 2026.

The company has not found good targets to acquire, although local peer Taishin Financial Holding Co (台新金控) last week won a bid for Prudential Life Insurance Co of Taiwan (保德信人壽) for NT$5.5 billion (US$186.33 million).

“The company will keep looking for [suitable targets] … but we are conservative, as it is challenging to run a life insurance business after a series of rate cuts around the world,” E.Sun Financial president Magi Chen (陳美滿) told an investors’ conference in Taipei.

Meanwhile, companies with insurance units would be under more pressure financially after International Financial Reporting Standard 17 takes effect, as the new accounting rules have tighter requirements regarding insurers’ capital adequacy, Chen said.    [FULL  STORY]