Allianz Taiwan Life Insurance has reached an agreement to sell part of its traditional life insurance portfolio to China Life Insurance, as the firm pursues a strategy to actively manage its Taiwan life portfolio for more capital-efficient solutions.
The transaction includes a portfolio of approximately 78,000 policies with a guaranteed interest rate of 4% or higher, with a combined IFRS policy reserves of €1.2 billion (42.1 billion Taiwan new dollars).
The transaction, which is due to complete in mid-2018, is expected to have a positive impact on the group’s Solvency II capital position.
“With its strong balance sheet and track record in acquiring and integrating policies and policyholders, we believe China Life is the ideal candidate to take over this portfolio. Allianz remains fully committed to Taiwan, and this transaction is consistent with our priorities to serve customers with our core unit-linked and protection solutions,” said George Sartorel, Regional Chief Executive Officer (CEO) for Asia-Pacific, Allianz.
The agreement includes the transfer of all related assets and liabilities of the respective portfolio to China Life, with full protection of customer interests and rights.
The transaction is subject to China Life’s shareholder meeting and regulatory approval.
Allianz Taiwan Life employees will not be impacted by the deal.
