“We are collecting information at the request of a lawmaker to see if there was any irregularity involved,” Susan Chang, the financial regulator’s vice chairwoman, said in a phone interview. “Our initial finding shows none has violated the Insurance Act.”

Ruling Democratic Progressive Party lawmaker Wang Shih ching Wednesday questioned Taiwan Life’s investment in Long Bon and Waterland Financial Holdings, the Commercial Times reported yesterday. According to the report, Wang said Taiwan Life is seeking to influence Waterland’s board elections for 2008.

Taiwan’s Insurance Act allows an insurer to invest as much as 5 percent of its assets in a company, or own up to a tenth of any one company. The law doesn’t ban insurers from obtaining board seats in companies they’ve invested in, said Chang.

Taiwan Life President Steve Lin said the company bought about 7.4 percent of Long Bon’s shares in March as a long-term investment. Long Bon owns 42 percent of Taiwan Life. Wang said the investment in Long Bon has hurt the interest of Taiwan Life’s clients, the Commercial Times said.

“There was no irregularity at all in the share purchase, because we bought the shares on the open market, at the market price,” Lin said in a telephone interview. Long Bon pays steady dividends, he added.

Taiwan Life has owned Waterland shares since 2003, and now holds a 2.8 percent stake in the financial holding firm, said Lin.

“Waterland always pays generous dividends, that’s the reason, and we have no intention at all to sit on its board,” Lin said.

Waterland in March announced a NT$0.6 per share cash dividend and a stock dividend of two shares for every 100 held.

Chang said the commission is also looking into Singfor Life Insurance Co.’s purchase of Chung Hwa Pulp Corp. shares; Shin Kong Life Insurance Co.’s investment in First Financial Holding Co.; Kuo Hua Life Insurance Co.’s investment in Long Bon; and Fubon Life Assurance Co.’s purchase of Chinatrust Financial Holding Co. shares.

Shin Kong Financial Holding Co. spokesman Victor Hsu said First Financial is a long-term investment, citing its habit of paying dividends.

Singfor Life’s Assistant Vice President Michael Lee said the company bought an 8.5 percent stake in Chung Hwa Pulp in April after an internal study estimated that Chung Hwa’s shares may rise above NT$30 “in the mid- to long term” because of a global pulp shortage.

“We have no interest at all in entering Chung Hwa’s management,” said Lee.

Victor Kung, President of Fubon Financial Holding Co., which owns Fubon Life, wasn’t available for comment.

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