Financial holding and life insurance outlook turns to stable
Taiwan Ratings announced the credit rating results for Taishin Shin Kong Financial Holding and its subsidiaries, with the rating outlook for Taishin Shin Kong Financial Holding, Shin Kong Life Insurance and Taishin Daan Leasing revised from "negative" to "stable." Taishin Shin Kong Financial Holding said the latest credit ratings reflect that since the completion of the merger, with subsidiaries being integrated in succession, overall operations have gradually improved, the group's overall credit structure has stabilized, and merger benefits have gradually emerged.
Bank subsidiaries outlook turns to positive
The rating outlook for Taishin Bank and Shin Kong Bank was revised from "developing" to "positive," sending a positive signal for the two banks scheduled to complete their merger on January 1, 2027. Taiwan Ratings estimates that after the merger of the two banks, the domestic deposit market share is expected to reach 5% to 6%, in which case the bank is assessed to have moderate systemic importance among banks in Taiwan, and government support makes a rating upgrade possible.
Life insurance profitability improves, profile stabilizes
In the life insurance business, Shin Kong Life's rating outlook was revised from "negative" to "stable," with both its long-term financial strength rating and issuer credit rating maintained at "twAA-". Taiwan Ratings noted that Shin Kong Life benefited from contractual service margin releases and strong investment performance, with net profit reaching NT$32 billion in the first three quarters this year, improved profitability and a stabilizing risk structure, and a gradually improving overall financial profile, and is expected to maintain its competitive position over the next 2 to 3 years leveraging brand recognition and cross-selling capabilities within the Taishin Shin Kong Financial Holding Group.
Merger synergies still need time to materialize
Taiwan Ratings said the Taishin Shin Kong Financial Holding Group should be able to effectively manage post-merger integration of its major operating subsidiaries over the next two years. Several operating subsidiaries including life insurance, securities, financing leases and investment advisory have completed statutory merger procedures, while Taishin Bank and Shin Kong Bank will merge in early 2027. Although the group's market ranking has improved after the merger, and the market shares of its major bank, life insurance and securities subsidiaries have also expanded significantly as a result, given intense competition in the domestic market, it believes it will still take some time to realize merger synergies.
Bank-led group to maintain credit structure
On the "stable" rating outlook, Taiwan Ratings explained that this reflects that over the next 2 years the financial holding group should broadly maintain its credit structure and effectively manage post-merger integration of its major operating subsidiaries, and it expects the group will remain a bank-led financial holding group after the merger, with Taishin Bank still accounting for more than half of the financial holding group's total assets over the next 2 years. Taishin Shin Kong Financial Holding said the broad improvement in rating outlooks has positive significance for the group's post-merger business development. Looking ahead, it will continue to pursue integration and resource sharing among subsidiaries on the basis of prudent operations, capital management and risk control, strengthen cross-subsidiary business cooperation, leverage the complementary strengths of banking, insurance, securities and other businesses, enhance overall operating efficiency and competitiveness, continue to advance merger synergies, and create long-term value for shareholders and customers.