Business Model

About Fubon Financial Holdings

Fubon Financial Holdings-The Benchmark for Taiwanese Financial Institutions in Greater China

Intent on becoming one of Asia’s first-class financial institutions, Fubon Financial Holdings offers the most complete and diversified line of financial products and services in the industry through its many subsidiaries, including Fubon Life, Taipei Fubon Bank, Fubon Bank (Hong Kong), Fubon Bank (China), Fubon Insurance, Fubon Securities and Fubon Asset Management. All of these subsidiaries are leaders in their fields. As of the end of 2018, Fubon Financial Holdings had total assets of NT$7.7 trillion, rising 11.5% from 2017, the second most of any domestic financial holding company, and was serving more than 10 million customers. Fubon Financial Holdings garnered a net profit of NT$47.73 billion, or NT$4.52 per share, the highest in the industry for the tenth consecutive year.

A Diversified Group Full of Leaders in Their Fields

The Fubon Group got its start in 1961 when Fubon Insurance (formerly Cathay Insurance) began operations as Taiwan’s first private general insurer. As the government progressively deregulated the country’s financial services sector beginning in the late 1980s, Fubon applied to establish investment services, securities, banking, asset management, life insurance and bills financing units. At the end of 2001, Fubon Financial Holdings became the first financial holding company in Taiwan to go public, and its product portfolio was soon recognized as the most extensive in the financial services sector. Fubon’s subsidiaries are all standouts in their respective fields. Fubon Insurance has the top-ranked market share in the property & casualty insurance field at over 20%; Fubon Life is the top3 largest life insurer in Taiwan; Taipei Fubon Bank is one of Taiwan’s biggest privately run banks; and Fubon Securities has the third highest brokerage market share for spot trading on Taiwan’s equity markets.

The main businesses and profit models of these four subsidiaries are detailed below:

Subsidiaries Main Businesses Profit Models Key Activities
Taipei Fubon Bank
  • Institutional banking
  • Retail banking
  • Overseas subsidiaries
  • Interest income
  • Fee income
  • Investment income
  • Human resources management
  • Risk management
  • Funds management
  • Product and services management
  • Channel management
  • Customer relationship management
  • Market oversight and compliance
Fubon Life
  • Life insurance
  • Health insurance
  • Injury insurance
  • Annuity insurance
  • Underwriting profits
  • Investment income
Fubon Insurance
  • Auto insurance
  • Health/injury insurance
  • Commercial fire insurance
  • New types of insurance
  • Marine insurance
  • Home fire insurance
  • Engineering insurance
  • Underwriting profits
  • Investment income
Fubon Securities
  • Brokerage business
  • Proprietary trading
  • Underwriting business
  • Fee income
  • Investment income

2018 Operating Performance

The global economy maintained steady growth in 2018, but due to the US China trade war, global stock market volatility, the strengthening of the US dollar and the fall in US bond yields, the overall profit of Taiwan's financial holdings industry declined slightly from 2017. The ROA (return on assets) and ROE (return on equity) of Fubon Financial Holdings remained steady at 0.65% and 9.98%, respectively. Assets under the management of Fubon Financial Holdings continued to grow, rising 11.5% from 2017 to reach NT$7.7 trillion as of December 2018, the highest in the Company’s history and the second highest among domestic financial holding companies.

Learn More about 2018 Operating Performance >