CTBC Takeover Plan Is a Threat to Taiwan’s Biggest Life Insurers

CTBC Financial Holding Co.’s proposed takeover of its Taiwanese rival Shin Kong Financial Holding Co. would create a new entity to take on Taiwan’s dominant life insurers.

A combination of CTBC and Shin Kong, Taiwan’s fifth and sixth largest life insurer, respectively, would rank just behind industry leader Cathay Life Insurance Co., according to Morgan Stanley Taiwan Ltd. analyst Peggy Shih.

The planned deal would also boost assets of CTBC’s commercial banking unit, already the island’s largest, to NT$6.5 trillion ($204 billion), according to the Financial Supervisory Commission. That will make it almost 60% bigger than the ...