Taiwanese Mercuries Life Insurance reportedly explores sale

Taiwan’s Mercuries Life Insurance is reportedly examining various strategic alternatives, including the possibility of a sale, reported Bloomberg, citing sources.

The company, which is listed on the Taipei exchange, is said to be working with financial advisers to explore preliminary interest from potential buyers.

The insurer's market valuation is reported to have decreased by 17% this year to around the $1bn (T$30.28bn) mark.

The discussions are not limited to an outright sale; selling a partial stake in the company is another avenue being considered by Mercuries Life, the news agency said.

However, the deliberations are in the early stages and may not necessarily result in a transaction.

The company has come under the lens of the Taiwan Financial Supervisory Commission for not meeting certain regulatory requirements, specifically in relation to its capital-adequacy ratio.

The regulator has mandated that the insurer must address these issues by the end of the current year, with a detailed plan due before the end of August.

In reaction to queries from Bloomberg News, representatives from Mercuries Life indicated that the company is seeking ways to reinforce its capital base and is open to potential alliances within Taiwan and internationally. The company is considering all strategic options in this regard.

While the company is open to international propositions, prospects from Chinese operators may encounter regulatory hurdles, as such acquisitions would need to clear multiple levels of government approval.

Mercuries Life, established more than two decades ago and public since 2012, provides a variety of products encompassing life, health and accident insurance, as per information available on its official website.

"Taiwanese Mercuries Life Insurance reportedly explores sale " was originally created and published by Life Insurance International, a GlobalData owned brand.

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