Taishin-Shin Kong merger to strengthen life insurance business: Expert

Taipei, July 19 (CNA) Taishin Financial Holding Co. aims to provide more comprehensive life insurance services through a merger with Shin Kong Financial Holding Co., which is scheduled to be completed next week, according to an expert.

Speaking with CNA, Andy Chang (張書評), senior director of the Financial Services Ratings Department of Taiwan Ratings, said Taishin Financial, which currently runs its flagship banking entity -- Taishin International Bank -- is complementary in business with Shin Kong Financial, which has Shin Kong Life Insurance as its major operations.

Chang said the Taishin Financial-Shin Kong Financial merger is just one of the recent examples in which financial firms wanted to take advantage of a merger to allow the suitors, which have already had strong banking operations, to help them expand their life insurance operations.

Through the broad banking and insurance networks after the merger, the suitors would be able to market their products and rake in more profit, Chang said.

Similarly, the upcoming merger is expected to help Tsishin Financial secure a higher market share in the local life insurance company by expanding its customer base and strengthening its bottom line, Chang said. He added that the merger is also expected to boost Taishin Financial's visibility in other businesses such as securities.

The two companies first announced the merger deal in August 2024. It was approved by their shareholders in October 2024, cleared by the Fair Trade Commission in January 2025, and received final approval from the Financial Supervisory Commission in late March 2025.

The merger is scheduled to be completed on July 24, when Shin Kong Financial shares will be delisted from the Taiwan Stock Exchange, where its stock began trading on Feb. 19, 2002, with Taishin Financial as the surviving company.

During the process, the two companies fended off a counterbid from CTBC Financial Holding Co., which had also coveted Shin Kong Financial.

The new company will be named TS Financial Holding Co. and is set to become Taiwan's fourth-largest financial holding firm by assets, only trailing Cathay Financial Holding Co., Fubon Financial Holding Co. and CTBC Financial.

Chang said the merger will also pose challenges to Taishin Financial as banking and life insurance are two different business models and the new company has to find a way to overcome the differences and to better run its life insurance operations.

Chang added as Shin Kong Financial is less financially sound than Taishin Financial, financial authorities could require the new company to raise its capital size to make up the shortfall, while the two companies have different business cultures to conquer, so both sides are expected to take some time to narrow such a gap.

According to Taishin Financial President Welch Lin (林維俊), mergers of the major subsidiaries under the two financial holding firms are scheduled for completion by the end of June 2026.

Chang said he expected more financial mergers will come in Taiwan as many small-sized financial firms are faced with challenges in cybersecurity and implementation of the environment, social and governance (ESG) initiatives.

But the analyst said a large-scale merger like the Taishin Financial- Shin Kong Financial combination will be seldom seen in the near future.

In addition, Chang said merger projects among private small and medium sized financial firms are likely to proceed, while it could be harder for government-invested financial firms to carry out their combination plans.