Cathay Life of Taiwan Leads Sector in June

Taipei, July 10, 2009 (CENS)--Cathay Life Insurance Co. scored NT$22 billion (US$668.69 million at US$1:NT$32.9) in first-year policy premium revenues in June, the highest since the beginning of this year to lead Taiwan's life insurance sector, according to the Life Insurance Association of the Republic of China (LIA-ROC).

Fubon Life Insurance Co. and Shin Kong Life Insurance Co. came in second and third place with NT$15.66 billion (US$475.98 million) and NT$9.92 billion (US$301.51 million) in the same month, respectively.

The LIA-ROC said the major battlefield for domestic life insurers is interest-variable annuity. Cathay registered NT$8.6 billion (US$261.39 million) in revenues for interest-variable annuity in June, followed by Fubon with NT$8 billion (US$243.16 million) and Shin Kong with US$6.6 billion (US$200.6 million). The three above-mentioned firms scored a total of NT$23.2 billion (US$705.16 million) in revenues from first-year interest-variable policies in June alone.

Many life insurers in Taiwan sell policies at an annual interest rate of 1.15%, higher than 1% for N.T.-dollar term deposits offered by banks, hence the popularity of interest-variable annuity policies.

Cathay Life aims for a 30% market share in Taiwan with revenues from first-year premiums to reach NT$200 billion (US$6.07 billion) this year.

After acquiring ING Life Insurance Co. Taiwan Branch, Fubon has raised its goal to NT$170 billion (US$5.16 billion) from NT$120 billion (US$3.64 billion) for first-year premium revenues this year.

Shin Kong said it saw first-year premium revenues grow a whopping 238% year-on-year in June to regain its top-three position due to hot selling interest-variable annuity policies.