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Prudential Financial to sell Taiwan subsidiary; Sun Life opens Singapore office

S&P Global Market Intelligence offers our top picks of insurance news stories and more published throughout the week. Please note that some entries may have links to third-party sources that require a subscription.

Life and health

Prudential Financial Inc. agreed to sell Prudential Life Insurance Co. of Taiwan Inc. to Taishin Financial Holding Co. Ltd. for undisclosed financial terms.

The deal is part of Prudential's strategy to shift its focus on Japan and higher-growth emerging markets around the world.

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Sun Life Financial Inc. launched an office in Singapore as part of its effort to build out its high-net-worth strategy within Asia, Bloomberg News reported, citing Sun Life Singapore CEO Belinda Au.

Sun Life will offer insurance products through international brokers and private banks with a focus on affluent clients in the city-state.

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In Japanese earnings news, Dai-ichi Life Holdings Inc. logged fiscal first-quarter net income attributable to shareholders of the parent company of ¥40.84 billion, down 21.1% from ¥51.77 billion in the prior-year quarter. EPS for the period decreased year over year to ¥36.14 from ¥45.23.

Sony Financial Holdings Inc. posted fiscal first-quarter profit attributable to owners of the parent of ¥13.13 billion, compared with ¥22.36 billion in the prior-year period. Net income per share decreased year over year to ¥30.17 from ¥51.39.

Sony Life Insurance Co. Ltd.'s unconsolidated net income for the period also dropped to ¥9.17 billion from ¥18.38 billion in the fiscal quarter ended June 30, 2019.

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In Korea, Samsung Life Insurance Co. Ltd. reported second-quarter net profit of 449 billion South Korean won, up 45% from 309 billion won in the second quarter of 2019.

Hanwha Life Insurance Co. Ltd.'s first-half net income also rose 88.2% to 176 billion won from 93 billion won in the first half of 2019.

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Manulife Financial Corp. priced an offering in Taiwan of US$1.16 billion of its 3.050% senior notes due Aug. 27, 2060. The offering is expected to close on or about Aug. 27.

Multiline

Axa SA is working with an adviser on the potential sale of its Singapore unit as the insurer seeks to divest peripheral operations to raise funds, Bloomberg News reported.

The company could begin a sale process in the next few weeks at the soonest, but no final decisions have been made on the matter, according to the report, citing people familiar with the matter.

Property and casualty

QBE Insurance Group Ltd. logged a first-half statutory net loss after tax of US$712 million, or a loss of 51.9 cents per share, compared with statutory net profit after tax of US$463 million, or 34.7 cents per share, in the prior-year period.

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Perils AG reported estimated industry losses of A$958 million from an Australian east coast low event in February, compared with its previous estimate of A$794 million.

The increase reflects the addition of A$100 million in property losses and the inclusion of A$64 million of motor losses.

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Swiss Re AG reported first-half total global economic losses of US$75 billion, compared with US$57 billion in the prior-year period.

The economic losses are comprised of US$72 billion of natural catastrophes and US$3 billion of losses from human-caused disasters, according to Swiss Re Institute's preliminary sigma estimates.

Reinsurance

New India Assurance Co. Ltd. is leading the consortium that underwrites a primary reinsurance program that could absorb up to 90% of the loss related to the Air India aircraft that crashed Aug. 7, with an obligatory 5% cession to General Insurance Corp. of India, Insurance Insider reported.

National Insurance Co. Ltd., Oriental Insurance Co. Ltd. and United India Insurance Co. Ltd. also participate in the program.

American International Group Inc. is the lead underwriter for another reinsurance program that is expected to cover around 85% of the losses from the crash, with Axa XL holding a "meaningful" line in the program.

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