Efficiency Analysis of Mergers and Acquisitions in the Taiwan Life Insurance Industry

• Main Authors: LIU, JING-RU, 劉靜茹
• Other Authors: LIU, CHWEN-CHI
• Format: Others
• Language: zh-TW
• Published: 2017
• Online Access: http://ndltd.ncl.edu.tw/handle/zmb3us

碩士 === 逢甲大學 === 風險管理與保險學系 === 105 === In recent years, mergers and acquisitions(M&As) has become one of the important strategies for the pursuit of business growth in many industries, and the total amount of money of M&As transactions is rising for years running. In order to observe whether the life insurance companies improved efficiency after the M & A transactions, this paper analyzes the efficiency effects of M&As in the Taiwan life insurance industry during the period 1995-2013 using data envelopment analysis(DEA). The results provide evidence that the technical efficiency score of life insurance companies after M&As is between 0.6-0.7 on average due to pure technical non-efficiency. Among the 15 cases of Taiwan life insurance industry in 1995 to 2013, there are 47% of the life insurers achieved the optimum technical efficiency and scale efficiency in the first year after the M&As, 66.7% of the life insurers achieved the optimum pure technical efficiency. In the second years after the M&As, there are 34% of the life insurers achieved the optimum technical efficiency and scale efficiency, 47% of the life insurers achieved the optimum pure technical efficiency. There are 53% of the life insurers did not achieve the optimum technical efficiency in the 1-2 years after the M&As. Continued to use the capital to classify life insurers to observe the efficiency after M&As. In the type that large companies merging small companies, there are 40% of the life insurers are efficient in the technical efficiency after M&As; 70% of the life insurers are efficient in the pure technical efficiency after M&As. In the type that small companies merging large companies, there are 50% of life insurers are efficient in the technical efficiency and pure technical efficiency after M&As.