Manulife Financial Corporation says subsidiary Manulife (International) Limited has signed an agreement to sell its life insurance business in Taiwan to CTBC Life Insurance (CTBC Life), a subsidiary of CTBC Financial Holding. That’s one of the largest financial holding companies in Taiwan.
Completion of the transaction is subject to typical closing conditions, including receipt of regulatory approvals, and is expected to close by the end of 2013.
Under the agreement, CTBC Life will assume virtually all of the life insurance business-related obligations of Manulife (International) Limited Taiwan Branch, and will offer employment to all existing employees and agents.
When complete, the transaction is expected to increase the Minimum Continuing Capital and Surplus Requirements (MCCSR) ratio of Manulife Financial’s key operating subsidiary, The Manufacturers Life Insurance Company (MLI), by approximately 3 percentage points. MLI’s MCCSR was 217 percent as of March 31, 2013. The transaction is not expected to have a material impact on Manulife Financial Corporation’s consolidated financial results. Further details of the transaction were not disclosed.
Manulife Financial remains committed to its asset management operations in Taiwan, Manulife Asset Management (Taiwan) Co., Ltd. This is a separately managed operation and will not be impacted by the transaction.
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