establish a subsidiary in Bermuda, using the island as a base for its international expansion.

"Opening a subsidiary in Bermuda is part of the company's plans for internationalisation,'' spokesman Chang Chung-yuan told the Journal of Commerce. "We will use Bermuda as a base to enter the international insurance market.'' Cathay expects to spend about $1.25 million in setting up the unit, which would also cooperate with foreign insurers for investment projects and penetration into East Asian markets.

Cathay Life holds about 40 percent of Taiwan's life market, and posted a profit of $315 million in the first six months of this year.

The company first needs approval from Taiwan's finance ministry before setting up in Bermuda, the magazine stated. It quotes Premier Vincent Siew as urging local insurance companies to expand services abroad.

He advised firms to "cultivate an international professional elite, embrace information technology, and provide first-class services.''