Cathay Financial Holding Co. (2882.TW) said its life insurance unit has agreed to buy a 3.45% of Taishin Financial Holding Co. (2887.TW) from private-equity fund TPG Inc. for NT$4.74 billion (US$156.2 million).

Cathay Financial, Taiwan's biggest financial conglomerate by assets, said in a statement issued late Tuesday the unit had agreed to purchase 258.98 million Taishin convertible preferred shares from TPG at NT$18.30 each.

The statement didn't say how many shares TPG will hold in Taishin after the deal. Local news media said TPG's stake will remain at about 16%.

Cathay Financial expects the deal to be completed by Feb. 29.

-By Aries Poon, Dow Jones Newswires; 886-2-25022557; aries.poon@dowjones.com