Manulife Financial, the Canadian financial services group, has sold its Taiwan life insurance business to one of the largest financial holding companies in Taiwan.

The sale to CTBC Life Insurance, the subsidiary of CTBC Financial Holding, is still subject to regulatory approvals but is expected to be completed by the end of 2013. Under the terms of the deal, CTBC Life will assume all of the life insurance business-related obligations of Manulife Taiwan and will offer employment to all existing employees and agents.

Upon closing, it is expected to increase the minimum continuing capital and surplus requirements ratio of Manulife Financial's key operating subsidiary, The Manufacturers Life Insurance Company, by around 3 percentage points. MLI's MCCSR as of 31 March 2013 was 217 per cent. 

The transaction will not have any material impact on the parent firm's consolidated financial results. Manulife Financial says it remains committed to growing its core asset management operations in Taiwan, which is a separately managed entity.