Cathay Financial Holding Co., Ltd. : Cathay Financial Holdings and Conning Announce Joint Venture

Cathay Financial Holding Co., Ltd. (TWSE: 2882), a leading financial services provider, and Conning, one of the largest global asset managers focused on the insurance industry, today announced they will form a broad-based strategic partnership and joint venture that will provide institutional asset management services in the Asia Pacific region. An application seeking approval will be filed with regulatory authorities in Taiwan.

Under the joint venture agreement, a new asset management company will be formed with headquarters in Hong Kong. Cathay Financial Holdings and Conning will each own 50% of the equity in the new company. A leadership team will be recruited and is expected to be announced later this year. In addition, Cathay Financial Holdings will purchase a minority ownership stake in Conning. Conning currently manages assets for Cathay Life Insurance Company, a subsidiary of Cathay Financial Holdings.

"We are very excited about our strategic partnership with Conning," said C.K. Lee, President of Cathay Financial Holdings. "This partnership, including the establishment of a Hong Kong joint venture and an investment in Conning, is an important strategic transaction for Cathay Financial Holdings as we look to further strengthen our asset management capabilities and expand our presence in the asset management industry in the Asia Pacific region."

"Since Aquiline invested in Conning, we have been seeking a partner to help the Company develop the Asia Pacific region," said Jeff Greenberg, Chairman of Conning and Chief Executive of Aquiline Capital Partners, a global financial services private equity firm that acquired Conning in 2009. "We are fortunate to be working with Cathay, a market leader with an outstanding reputation. We are excited by the potential that this joint venture offers, and look forward to welcoming Cathay Financial Holdings as a shareholder of Conning."

The joint venture will enable both Cathay Financial Holdings and Conning to grow their institutional investment management activities in target markets including Taiwan, China, Hong Kong, South Korea, Japan and Vietnam, while developing attractive local investment products that can be distributed globally. The transaction is subject to customary regulatory approvals and licensing and is expected to close by the first quarter of 2012.

"We welcome Cathay Financial Holdings as a strategic partner," said Woody Bradford, President and Chief Operating Officer of Conning. "We look forward to building a long-term relationship offering innovative asset management to insurance and institutional clients in the Asia Pacific region and are confident that many opportunities will arise from our alliance."

About Cathay Financial Holding Co., Ltd.

Cathay Financial Holding Co., Ltd. (www.cathayholdings.com.tw) is the largest financial holding company in Taiwan and a leading provider of financial products and services. The company's primary subsidiaries include Cathay Life Insurance, Cathay United Bank, Cathay Century Insurance and Cathay Securities. As of December 31, 2010, the company had total assets of over US$161 billion and over 11 million customers. In recent years, Cathay Financial Holdings has also increased its presence in Asia, including establishing life insurance, property & casualty insurance and banking operations in China and Vietnam.

About Conning

Conning (www.conning.com) is a leading asset manager for the insurance industry, with almost US$77 billion under management through its Hartford and Dublin investment centers as of March 31, 2011. For more than 25 years, Conning has built its asset management business to meet the investment and financial needs of insurers. The Company's unique combination of asset management, strategic advisory and insurance research services helps clients achieve their financial goals through the implementation of customized business and investment strategies. Founded in 1912, Conning is headquartered in Hartford, Connecticut, with additional offices in New York, London, Dublin, and Cologne.

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Cathay Financial Holdings
David Sun
+ 886-2-2708-7698 x7790
+ 866-988-798-089 (cell)
dsun@cathayholdings.com.tw
or
Stanton Public Relations & Marketing
Nicky McHugh
+1 646-502-3532 (direct dial)
+1 646-280-9283 (cell)
conningteam@stantonprm.com
or
Conning
Karen Verelley
+1 203-252-0973
Karen.verelley@conning.com

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