With UK's insurer Prudential Plc having posted losses in the Taiwan market, over the past three-four period, most of the company's
2.76 percent market share there will be bought by Taiwan's China Life.

In return, Prudential will take a nearly 10 percent stake in China Life, which is estimated to be a T$2.18 billion company in terms of value. China Life will also issue 145.5 million new shares in exchange for a large part of Prudential's PCA Life Assurance Co unit, and sell these at T$15 per share to Prudential.

However, Prudential will hold on to its banking channels and telemarketing business in the country. About the company's deal with China Life, Mark Tucker, CEO of Prudential told reporters in London: "It's an investment in our continued belief in Taiwan and the agency system there."

Once the transfer of Prudential's business to China Life, there is expected Prudential's European Union Insurance Groups Directive capital surplus will show a net rise of roughly 800 million pounds.

UK's Prudential is not the only business selling its Taiwan market share - while Aegon is looking to haul T$4 billion by selling its local unit, and AIG is looking a bidder for Nan Shan Life, its Taiwan life insurance business; Dutch ING Groep has already struck a US$600 million deal for its Taiwan unit with Fubon Financial.