Allianz Dilutes Taiwan Operation

German insurer Allianz has received regulatory approval for an earlier announced transaction to sell part of its traditional life insurance portfolio in Taiwan to Taipei-based China Life Insurance Company. The transaction, which was announced in October last year, will see the insurance firm sell a part of its Taiwan portfolio comprising over 78,000 life policies that bear an interest rate of 4 per cent or higher. 

However, Allianz did not disclose the value of the deal and details of the stake it will continue to hold in the Taiwan business. In an announcement on Tuesday, it said that the transaction is expected to close on May 18 this year and all policyholders’ rights remain unchanged and fully protected. 

It further added that the announcement does not impact operations or ongoing business of Allianz Taiwan Life  (AZTL), the largest multinational life insurance company in Taiwan by gross written premiums in 2017. Having entered the Taiwan market in 1995, Allianz Taiwan has maintained a leading position in the market with an established distribution network and multiple strategic bank partnerships. 

In 2017, it grew its total revenues by 50 per cent to NTD 82.4 billion, while successfully expanding its agency force by a third to over 2,500 advisers. “This transaction supports our priorities to focus on the core segments where we have the most expertise to provide greater value to our customers. 

Taiwan remains a highly attractive and important market to Allianz, where we have a high-quality and fast-growing business,” said George Sartorel, Regional CEO, Asia Pacific, Allianz. 

The financial services giant recently completed the acquisition of Sri Lanka-based insurer Janashakthi General Insurance Ltd for about $106.4 million. The group is one of the leading insurers and asset managers in the world with more than 86 million retail and corporate customers. 

As an investor, the group manages over 650 billion euros on behalf of its insurance customers while the asset managers Allianz Global Investors and PIMCO manage an additional 1.4 trillion euros of third-party assets. Asia is seen as one of the core growth regions for Allianz which has been present in the region since 1910 when it first provided fire and marine insurance in the coastal cities of China. Today, the insurer is active in 14 markets in the region, offering property and casualty insurance, life, protection and health solutions, as well as asset management.