Leading insurance carrier sells non-life business to Taiwanese unit

The $198 million purchase seals the company's exit from the local market, and follows in the footsteps of a similar move from AIG.

Insurance News

By Lyle Adriano

On Friday, Taiwanese auto distributor Hotai Motor announced its intent to purchase Zurich’s local non-life insurance business.

Hotai, Toyota’s local distributor in the region, will purchase the business unit for $198 million, reported Forbes. The company claimed that such a price would allow it to offer insurance at lower premiums.

Zurich’s sale of its business unit follows a similar earlier move done by AIG, which had sold its Nan Shan Life unit to Ruentex Group in 2011 for over $2 billion.

According to Forbes, Taiwan’s economic growth outlook prospects are not looking any promising due to slow global GDP growth and its rocky political ties with mainland China—particularly after Democratic Progressive Party-associated Tsai Ying-wen was elected president this year.


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