The insurance company will become a multinational enterprise by expanding its presence in Asia, Koay told reporters at an annual press conference.

The Taipei-based life insurer has had a representative office in Hanoi for some time and recently received approval to set up one in Shanghai, he said.

Koay said Nan Shan plans to set up a subsidiary in China in three years, with a capital base of around US$10 million.

Meanwhile, the representative office in Vietnam will be upgraded to a subsidiary by the end of next year, he said, adding that the capital base will be less than in China since Vietnam is a smaller market.

In 2009, Taiwan and China signed a package of agreements on cooperation in banking, insurance and securities.

Taiwanese companies are required to operate representative offices in China for two years before being allowed to set up subsidiaries, said Nan Shan Life Insurance Co Vice Chairman Du Ying-tzyong.

The company’s after tax profit for the first seven months of this year was NT$7.3 billion (US$243.3 million), which makes it the most profitable local insurance company.

As of the end of July, Nan Shan’s unrealized gains were NT$120 billion to NT$130 billion, according to Du.

For the first seven months of this year, Nan Shan collected premiums of NT$118.5 billion, five times more than in the same period last year.