Taishin Financial : “Taishin FHC”) to acquire 100% of Prudential Life Insurance Company of Taiwan Inc. (“POT”); Successful execution of Taishin FHC’s universal banking strategy

(2020/08/11) Taishin FHC announced this evening the 100% acquisition of POT for a base consideration of NT$5.5 billion. This transaction marks Taishin FHC's entry into the insurance business and completes its universal banking strategy with the addition of a third growth pillar to its existing banking and securities businesses. Completion of the transaction is subject to customary regulatory approvals.

POT is a top-quality insurance company with over 30 years of operating track record in Taiwan. As the fourth-largest foreign-owned life insurance company in Taiwan by total assets, POT is a franchise which is prudently managed, has solid financial strength, strong persistency ratio, excellent after-sales service quality and focus on corporate social responsibility. POT is also the only life insurance company that has been named as a 'Model Company' by the Financial Supervisory Commission eight times.

POT and Taishin FHC have been bancassurance partners for many years and have together, achieved remarkable results. This transaction is in line with Taishin FHC's universal banking strategy to offer customers with a more comprehensive set of financial products and high-quality customer service through the integration of our banking, securities and insurance businesses. The rights of POT's existing policyholders will not be affected after POT joins Taishin FHC's group of companies. In addition, they can also obtain access to Taishin FHC's innovative financial products and high-quality customer service.

In addition, employees have always been an invaluable asset to Taishin FHC. Post completion of the acquisition, all of POT's employees will be retained with benefits intact. Taishin FHC welcomes all of POT's employees to work closely with the group to become a 'Smart Partner' to its customers.

While Taishin FHC has not owned an insurance business in the past, it has a long track record of working successfully with insurers via bancassurance. The acquisition of POT demonstrates Taishin FHC's firm commitment to the life insurance business and is consistent with its long-term vision and strategy. Taishin FHC has in place robust short-term and long-term funding plans to satisfy potential requirements from the regulators.

POT is a superior franchise with a strong management team and comprehensive product offering. Taishin FHC believes that the acquisition of POT will maximize value for all of Taishin FHC's subsidiaries, shareholders, employees and customers.