(Central News Agency, Taipei, July 7) The Financial Supervisory Commission (FSC) today approved E.SUN Financial Holding Co.'s acquisition of 100% of Shin-Shin Life Insurance through share exchange, with the merger effective date expected to be September 1. The FSC stated that E.SUN Financial Holding Co. has committed to subsequent capital increases and will retain all 10,034 employees of Shin-Shin Life Insurance, guaranteeing their labor rights remain unchanged for three years. The rights of Shin-Shin Life Insurance's 2.452 million policyholders will also be unaffected.
E.SUN Financial Holding Co. and Shin-Shin Life Insurance held extraordinary board meetings and shareholder meetings on November 5 last year and January 23 this year, respectively, approving the share exchange plan. Upon completion of the exchange, Shin-Shin Life Insurance will become a wholly-owned subsidiary of E.SUN Financial Holding Co. E.SUN Financial Holding Co. submitted its application to the FSC on May 8 this year, and the FSC announced today its approval of E.SUN Financial Holding Co.'s acquisition of Shin-Shin Life Insurance.
Cai Huo-yan, deputy director of the FSC's Insurance Bureau, stated that the case complies with relevant regulations of the Financial Holding Company Act and the Insurance Act. Furthermore, E.SUN Financial Holding Co. meets the relevant requirements in terms of safeguarding the rights and interests of Shin-Shin Life Insurance's policyholders and employees, funding sources, financial soundness, professional capabilities in operating the insurance business, long-term operating commitments, and financial capacity to address Shin-Shin Life Insurance's future capital increase needs. E.SUN Financial Holding Co. has also issued a statement, promising uninterrupted policyholder services for Shin-Shin Life Insurance.
Cai Huo-yan pointed out that Shin-Shin Life Insurance has a total of 10,034 employees, including 1,831 internal staff and 8,473 external agents. E.SUN Financial Holding Co. will, in principle, retain all employees and guarantee that their labor rights will remain unchanged for three years. As of the first quarter of this year, Shin-Shin Life Insurance had 2.452 million policyholders and 10.038 million valid policies.
The public has been concerned about Shin-Shin Life Insurance's capital situation after adopting the new generation solvency system (TIS) this year. Cai Huo-yan indicated that Shin-Shin Life Insurance has applied for the use of selective transitional measures, which are currently under review by the FSC. If approved, a 15-year transition period can be applied. Shin-Shin Life Insurance made a capital increase commitment when applying for the transition, and E.SUN Financial Holding Co. must also fulfill the relevant capital increase commitments after acquiring Shin-Shin Life Insurance.
The Insurance Bureau explained that Shin-Shin Life Insurance's issuance of subordinated bonds and capital increase totaling NT$17.14 billion in 2025, as well as other uncompleted capital increase plans, must continue to be carried out in accordance with commitments made to the FSC. E.SUN Financial Holding Co. will subsequently increase the capital of Shin-Shin Life Insurance, and it is understood that the subsequent capital increase will exceed NT$20 billion.
Cai Huo-yan said that the provisional merger effective date for E.SUN Financial Holding Co.'s acquisition of Shin-Shin Life Insurance is September 1. E.SUN Financial Holding Co. has not yet mentioned renaming Shin-Shin Life Insurance to E.SUN Life Insurance. If there are plans for renaming, they may be submitted for approval after the merger effective date. (Edited by Chang Chun-mao) 0707
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- Source: CNA (Central News Agency)
- Category: 併購