Taiwan insurers to buy property abroad

[TAIPEI] Taiwan insurers have the financial capacity to invest at least US$10 billion in overseas properties after the island's government relaxed rules in April on property investments abroad, according to an industry group.

Insurers including Cathay Life Insurance Co have already submitted plans to buy more than 10 overseas buildings for approval by the island's financial regulator, said Paul Hsu, chairman of the Life Insurance Association of the Republic of China. Most of those deals include office buildings in major Chinese cities such as Shanghai and Beijing, he said.

Taiwan allowed insurers seeking stable returns to invest in property overseas after limiting them from buying locally to curb commercial property prices. Fubon Life Insurance Co, a unit of the island's second-biggest financial company, said last week it plans to buy as much as US$3 billion of overseas properties over the next four to five years.