Taiwan Life Insurance gets green light on China JV

TAIPEI, Feb 5 (Reuters) - Taiwan Life Insurance Co (2833.TW) has won approval from Chinese authorities for an insurance joint venture in China, the company said on Tuesday, the third such tie-up between firms in the two countries.

The news comes after sources told Reuters in April last year that the firm was in talks to buy half of an existing China insurance joint venture as it seeks to tap into the fast-growing market. [ID:nPEK99559]

China's overall insurance premiums rose 14 percent in 2006 to 564 billion yuan ($78.5 billion) and are expected to keep growing at double-digit rates for the next five years, in part due to efforts by Beijing to encourage more people to buy insurance.

Cathay Financial (2882.TW), parent of Taiwan's top insurer, and China Eastern Airlines (0670.HK) are running an insurance venture in Shanghai and other big Chinese cities.

Shin Kong Financial (2888.TW), parent of Taiwan's No. 2 insurer, said in November that its insurance tie-up with Hainan Airlines (600221.SS) had been approved by Chinese authorities with business expected to begin later this year. [ID:nTP179914] ($1=T$32.0) (Reporting by Faith Hung; Editing by Jan Dahinten)