02.26.2001
Hua Nan Bank to move into insurance next month

• In the quest for higher profit margins, Hua Nan Commercial Bank (2803 'Hua Yin') will start to offer insurance sevices in mid-March. The bank hopes to establish the largest 100%-owned insurance agency in Taiwan.

• Initially, Hua Nan will co-operate with Shinkong Life Insurance (2818 'Shin Shou') in focusing on life insurance. In the second year, it will seek to ally with other insurance companies in offering different kinds of insurance products, combining them with present financial products like credit cards and remittance.

• Hua Nan will invest NT$50m to set up the company and will start selling insurance products through fifty of its branches located in north, central and south Taiwan.

• We believe banks will continue to explore fee-based sources of income. The insurance business is set to grow on the back of increasing awareness of life and property insurance following the 921 earthquake. Banks that have a longer history and more branches like Hua Nan are in a good position to leverage strong customer relations in this area.

WilliamFong@Primasia.com +886-[0]2-2547-8864