TAIPEI (AFP) –
British insurance group Prudential Plc. Friday agreed to acquire a 9.9 percent stake in Taiwan's China Life Insurance, the two firms said after signing the deal.

Prudential has agreed to acquire 145 million China Life shares at 15 Taiwan dollars (43 US cents) per share through a private placement, China Life said.

In addition, China Life said in a statement it had agreed to acquire part of Prudential's life insurance operations on the island for the nominal sum of one Taiwan dollar (2.87 US cents).

The operations include assets and liabilities of the British insurance group's agency distribution business and agency force in Taiwan.

"This agreement is enormously value-enhancing for Prudential Group on several levels," Prudential chief executive Mark Tucker said in a statement on the company's website.

Tucker said the transfer would enable Prudential to focus on its expanding bank distribution through its partnerships with Standard Chartered Bank and Taiwan's E-Sun Bank.

"We also retain a significant interest in agency distribution in Taiwan through our shareholding in one of the largest and most reputable life companies in Taiwan," he said.

China Life said it expected the acquisition would help boost its earnings.

"China Life expects to expand its operations and diversify its products through Prudential quality sales network in Taiwan," the company added.

It added policy holders of Prudential in Taiwan would be completely protected.

China Life posted a net profit of 1.91 billion dollars for the first nine months of 2008, compared with 1.62 billion dollars for the whole of 2007.