TAIPEI (Taiwan News) — The Financial Supervisory Commission approved E.Sun Financial Holding Co.'s (玉山金控) acquisition of Mercuries Life Insurance (三商美邦人壽) through a share swap, paving the way for one of Taiwan's largest financial sector mergers in recent years.
The acquisition, which follows lengthy negotiations and regulatory reviews, is expected to be completed on Sept. 1, ending Mercuries' 32-year independent operation. Market analysts have described the merger as similar to "a prince waking up Snow White," suggesting the deal could revive the fortunes of the long-established insurer through E.Sun's stronger financial resources, per SETN.
Following the acquisition, E.Sun Financial Holding's assets are expected to exceed NT$6 trillion (US$180 billion), making it Taiwan's fifth-largest listed financial holding company. The deal will also strengthen E.Sun's three major profit engines: banking, insurance, and securities.
Addressing concerns over policyholders, FSC Insurance Bureau Chief Secretary Tsai Huo-Yen (蔡火炎) said E.Sun has pledged that the rights of Mercuries' 2.45 million policyholders will remain protected, with services continuing without interruption, per SETN.
To ensure operational stability, the FSC imposed conditions requiring E.Sun to retain its shares in Mercuries Life for at least 10 years. The regulator also required continued capital injections to ensure the insurer maintains a capital adequacy ratio that meets regulatory standards.
The FSC said the merger application did not include plans to rename Mercuries Life Insurance as E.Sun Life Insurance. If E.Sun decides to change the insurer's name, a separate application may be submitted after the merger is completed, according to Commercial Times.
Mercuries Life Insurance currently employs 1,831 administrative staff and 8,473 sales agents. E.Sun Financial Holdings said all employees will be retained and their labor rights will remain unchanged for three years.
E.Sun Financial Holding Chair Huang Nan-chou (黃男州) previously said that if the merger proceeds smoothly, the transaction will be completed by the end of the third quarter, with the insurer expected to be renamed E.Sun Life Insurance by the end of the year, per CNYES.
According to FSC statistics, Mercuries Life Insurance had 10.038 million active insurance policies as of the first quarter of this year.
