Taiwan-based Fubon Life Insurance Co would be beefing up its real estate portfolio with overseas acquisitions. A unit of Fubon Financial Holdings Co, the second largest financial company in Taiwan in terms of assets, intended to purchase up to USD 3 billion worth of properties.
Fubon Life Vice Chairman Howard Lin told Bloomberg the move came as the Financial Supervisory Commission eased rules about insurers investing in real estate abroad. The regulator had allowed investments in mainland China and lifted a ban that prevented insurance firms with financial irregularities from buying domestic commercial properties. The Commission would still need to approve overseas real estate purchases made by insurance firms in Taiwan.
Lin said Fubon Life is looking for its first real estate investment abroad. "Rents in Taiwan are not rising as fast as prices, so investment margins on domestic properties are quite low. When you allow insurers to buy overseas properties, they can choose from more buildings and it's certainly a good thing for them," Lin added.
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