Taiwan insurance profits plummet 43.3% to $6.2b in December

Total industry earnings sink as life insurance sector profits halve in 2025.

The pre-tax profit of Taiwan’s insurers as of December 2025 fell by 43.3% year-on-year (YoY) to $6.2b (NT$193.7b), driven by the dip in life insurance earnings, data from the Insurance Bureau showed.

Life insurance companies recorded pre-tax profit of $5.0b (NT$156.9b), down 50.3% from a year earlier.

In contrast, non-life insurers posted pre-tax profit of $1.2b (NT$36.8b), up 41.5% YoY.

Total owners’ equity of insurance companies stood at $92.2b (NT$2.88t) at the end of December 2025.

Life insurers accounted for $86.7b (NT$2.71t), an increase of 4.9% from last year. Owners’ equity of non-life insurers rose to $5.5b (NT$172.4b), up 14.1% YoY.

Currency movements continued to have a major impact on life insurers’ balance sheets. By the end of December 2025, the Taiwan dollar had appreciated 4.27% against the US dollar compared with end-2024.

As a result, the cumulative foreign exchange valuation reserve of life insurers increased to $19.6b (NT$613.7b), up $12.6b (NT$394.1b).

However, the combined impact of exchange gains and losses, hedging results, and volatility effects on the foreign exchange valuation reserve resulted in a net negative impact of $26.3b (NT$821.2b).

Despite this, overseas investments by life insurers generated net gains of $16.6b (NT$518.5b) over the period, excluding the volatility effect on the valuation reserve.

($1.00 = NT$31.67)