Cathay Financial Holdings said on Tuesday (Oct. 22) it will invest NT$27.32 billion (US$900 million) in a wind farm project off Changhua County.

Taiwan’s government has been incentivizing the private sector to invest in renewable energy development through construction or purchasing green power. The company’s decision demonstrates the local insurance industry’s support for the government’s policy, encouraging long-term funds for renewable energy while creating stable returns for shareholders, per CNA.

The company’s wholly-owned subsidiary Cathay Life Insurance will invest on behalf of Cathay Financial Holdings, becoming the largest insurance investment for offshore wind development. Cathay Financial said the Financial Supervisory Commission (FSC) approved its plans to invest through Cathay Wind Power Co. to acquire a 50% stake in Greater Changhua NW Holdings Ltd. and extend 50% of shareholder loans to Greater Changhua NW Holdings and Greater Changhua Offshore Wind Farm NW Ltd.

Cathay Wind Power, Denmark-based Orsted, and lending banks will sign a purchasing agreement, and Cathay Life Insurance will take a 99% stake in Cathay Wind Power.

The company’s General Manager Li Chang-keng  said on Oct. 18 that by 2030, all Cathay Financial Holdings locations in Taiwan will be powered by 100% renewable energy.

In addition, Cathay Holding and Fubon Holding are the top two financial holding firms in Taiwan with total assets hitting NT$13.3 trillion and NT$11.78 trillion, respectively, as of the end of this year's first quarter.

In addition, Fubon Financial Holdings announced a subsidiary for renewable energy investments. Its wholly-owned subsidiary, Fubon Life Insurance, will establish a holding company, Star Shining Holding, to allocate funds to renewable investments.

The company said the plan, which is still pending FSC approval, could cost NT$2.4 billion. Fubon Life Insurance said the restructuring allows Star Shining Holding to be fully dedicated to solar energy development.