10.12.2001
UWCCB to convene with Cathay Life on FHC

• UWCCB plans to hold an EGM on 17 Oct. to outline the details of its plan to form a financial holding company (FHC) with Cathay Life Insurance (2805.TT). Capitalization is set at about NT$97bn, similar to other proposed FHCs in Taiwan. We expect the share-swap ratio to be announced at the meeting. Cathay Life has been buying UWCCB shares aggressively through several government-linked banks such as First Commercial (2805.TT) and Chiao Tung (2824.TT). Through a previous call, UWCCB said that Cathay Life is a well managed insurance company and will benefit UWCCB in terms of insurance business. We agree with the bank as Cathay Life is the largest local life insurance company, commanding both an excellent sales force and established distribution channels. We maintain our rating on this counter.