Shinkong and China Life rely much more on first-year premiums than Cathay and, since the first-year premium is such a low-margin business, it means lower profits.
Traditionally, the Taipei market has been dominated by three big players: Cathay Life, Shinkong Life and the unlisted Nan Shan Life (part of the American giant AIG).
Li notes that more than half the people who purchase shares in Cathay and Shinkong do so as hidden asset plays to take advantage of the companies' large holdings in real estate.