By Faith Hung
TAIPEI May 17 U.S.-insurer New York Life
is in exclusive negotiations with Yuanta Financial
to sell its Taiwan assets, two sources with close
knowledge of the deal told Reuters on Friday, joining other
global rivals in exiting the Taiwan market.
The size of the deal is not yet final and is subject to
Taiwan regulatory approval, said the sources, who asked not to
be identified as the matter is confidential.
The deal size would be close to T$100 million ($3.3
million), they said. That was the price the U.S. insurer
previously agreed to sell to Taishin Financial, but
the deal was turned down by Taiwan regulators early in April.
"Their strategy is to exit Taiwan as soon as possible. They
don't really care about how much money they will get," said one
of the sources.
"We just talked to them this month. They said they are
negotiating with one potential buyer," he added.
Yuanta spokesperson Y. D. Chuang declined to comment, while
officials of New York Life's Taiwan unit were not immediately
available for comment.
Yuanta, parent of Taiwan's No.1 brokerage and which has
been looking for insurance firms to acquire, will sumbit
application of the deal to Taiwan regulators soon, said the
American Insurance Group and ING were
among the foreign insurers that have left the Taiwan market in
the past few years, in part because its interest rates are among
the lowest in Asia.