Manulife Financial has inked a contract to dispose of its life insurance business in Taiwan to CTBC Life Insurance Co (CTBC Life), a subsidiary of CTBC Financial.
The acquisition of insurance operations of Manulife in Taiwan, which focuses on the marketing of retirement/annuity and investment-related products, will help the acquirer to offer diversified products and services to its clients in the country.
The transaction, which is subject to general closing conditions, including required regulatory approvals and other customary closing conditions, is likely to conclude by the end of 2013.
Based on the terms of the acquisition, the Taiwanese insurer will assume virtually all of the life insurance business-related obligations of Manulife (International) Taiwan Branch, which consenters on the sale of bancassurance, insurance brokerages and telemarketing services.
Post-acquisition, all the employees, including more than 250 office workers and 850 life planners will be absorbed by the acquirer.
The transaction will boost the minimum continuing capital and surplus requirements (MCCSR) ratio of Manulife Financial's key operating subsidiary, Manufacturers Life Insurance Company (MLI), by nearly 3% points.
The current transaction will not affect the operation of Manulife Asset Management in Taiwan and the company will remain committed to its asset management business.
Operating as Manulife Financial in Canada and Asia and primarily as John Hancock in the US, Manulife and its subsidiaries had C$555bn ($547bn) of funds under management as at 31 March 2013.
