Axa Asia Pacific has sold its Taiwanese life-insurance business to Dutch Insurer Aegon, leaving the group with a $26 million after-tax writedown. 

Group Chief Executive Les Owen said the group currently has too small a market share in Taiwan (0.25%), and “to achieve a better position over the next few years would require a very large investment of both capital and management time”. 

The divestment is consistent with Axa’s Asia-Pacific strategy, which calls for it to concentrate on those markets where the company is able to achieve a leading position. 

It also allows Axa to concentrate on its two-year-old move into China, where its operation in Shanghai has been encouraging enough to tempt the company to expand.

Melbourne-based Axa Asia Pacific is still committed to growing operations in the region, Mr Owen said. The company is also looking at the Malaysian market with their partner Alvin Bank.

The sale to Aegon deal is subject to regulatory approval in Taiwan and should be finalised at the end of this year.