Cathay Life boosts 9M 2024 net profit to $2.06b

The value of new business (VNB) increased 20% to $740m.

Cathay Life’s first nine months of 2024 recorded an annualised first-year premium (APE) jump of 14% year-on-year (YoY) to $1.2b.

This was driven by strong growth in health, accident, and FX-denominated traditional long-term regular-premium products. 

The value of new business (VNB) increased 20% to $740m (NTD23.9b), supported by high-margin products, improving the VNB margin to 59% from 56% in the same period last year. 

Overseas operations continued to expand, with premium income in Vietnam rising 10% YoY and the company’s joint venture in China growing 19%. 

By the end of 2023, overseas premiums accounted for 7.5% of Cathay Life’s net earned premiums.  

Net profit for the period rose to $2.06b (TW$67b), significantly contributing to Cathay Financial Holdings' consolidated net income of $3.17b (TW$103b).

Cathay Life reported an annualised return on equity (ROE) of 13%, supported by realised gains on equity investments, which increased net investment income to $7.66b (TW$249b) from $6.52b (TW$212b) in 2023.  

CreditSights said Cathay Life is preparing for IFRS 17 and TW ICS implementation in 2026, which will include adjustments to risk factors for domestic equity and real estate under the new solvency framework. 

The company continues to generate strong new business growth, particularly in protection policies, whilst maintaining capital strength. 

Solvency remains stable, but comparisons to Japanese and Korean insurers highlight a lower buffer against economic risks, CreditSights said. Further details on Taiwan's solvency localisation measures are expected by mid-2025.

($1.00 = TW$32.50)