Chinatrust Acquires Metlife Taiwan (MET)

Chinatrust has secured a deal to acquire Metlife MET Taiwan for $180 million. The deal has not yet been approved by regulators. In Taiwan, regulators are skeptical to life insurance changes between companies because of the vast number of policies held by the Taiwanese people. If the companies make vast changes that don't pan out, resulting in financial difficulties, the state will be forced to foot the bill. This deal is Metlife's second attempt to sell the Taiwan unit. In October, Waterland Financial tried to purchase Metlife Taiwan for $112 million, but was blocked by regulators. The acquisition also gives Chinatrust a much sought-after entrance into the insurance sector. According to Chen Tungli, a Schroders fund manager, “The acquisition will be positive for Chinatrust in the longer term, as it can leverage its strong banking network into the insurance business.” Chinatrust purchased Metlife Taiwan with its own funds and has agreed to keep all of Metlife Taiwan's staff. Metlife Taiwan currently employs approximately 600 employees. It has a marketshare of less than 1%, with 307,000 policy holders in Taiwan.