Cathay Insurance Oked to Create Shandong Unit

Cathay Insurance Co., Ltd., a unit of Taiwan’s Cathay financial Holding Co., Ltd., has gained a regulatory approval to set up a branch in Shandong, a province in eastern China. The Shandong branch will be the fifth province-level subsidiary Cathay Insurance Co. builds after those in Jiangsu, Fujian, Guangdong and Zhejiang in the country. There are 25 property insurers in Shandong and they are established by Chinese investors. Cathay Insurance will become the first insurance company from Taiwan and the first property insurer from overseas in the province. A number of Taiwan companies have launched businesses in Shandong and the province has made use of USD 16.713 billion in capital from Taiwan, say people familiar with the matter, pointing out that establishment of the Shandong branch is in line with Cathay Insurance’s plan of serving Taiwan companies in the mainland in the initial stage. The five subsidiaries the Taiwan insurance company builds in mainland China are located in coastal areas, the people add.