Taipei, Nov.21, 2012 (CENS)--AXA S.A, a French insurance group, which planned to set up a base in Taiwan for the third time, has decided to cease investments in Taiwan and transfer NT$2 billion (US$66.67 million) to other Asian countries.
An official of FSC (Financial Supervisory Commission) indicated that the rejection of AXA’s application in May was due to the group’s withdrawal from the Taiwan market twice previously and negatively affecting the domestic insurance market; while AXA’s application this year does not assure long-term operation.
Despite being refused in May, AXA has kept recruiting managers in Taiwan, with the 40-plus staffers being shocked by the French headquarters’ decision to withdraw investment in Taiwan.
After consulting Manulife, First-Aviva Life Insurance, and a number of industry sources, AXA’s headquarters in France said to avoid damaging brand image due to another rejection is the reason behind its withdrawing investments in Taiwan and accepting losses of NT$300 million (US$10 million) in recruitment and setting up a telemarketing center, and that it will start to dispose assets.
An FSC official noted the saturated banking market has resulted in no new banking license issued in Taiwan for more than 10 years, with the government only permitting mergers of existing banks and financial institutions, and the last insurance license given to Zurich Insurance Group to return to Taiwan in 2008. The official suggests insurers to apply through mergers and acquisition of shares in existing insurers in Taiwan.
(by Andrew Wang)
