Fubon Financial earnings backed by strong life and bank units

Fubon Life is Taiwan’s second-largest life insurer by premiums.

Fubon Financial and its core insurance units are expected to maintain stable capital positions and profitability over the next 12 to 18 months, despite earnings volatility from foreign exchange exposure and market conditions, according to Moody’s Ratings.

Fubon Life, Taiwan’s second-largest life insurer by premiums, is forecast to gradually improve earnings quality through a product mix shift toward protection-focused and low-guarantee products. 

However, its capital and earnings remain sensitive to market swings, with 66% of invested assets overseas and some exposure to unhedged FX risk. 

Despite a 58% drop in earnings to TW$15.8b in the first five months of 2025, its RBC ratio stayed above 350% as of May, and it plans to issue TWD60 billion in subordinated debt to strengthen capital further.

Fubon P&C’s capital position has also improved, with its solvency ratio rising to 230% after selling its stake in WeSure. Whilst profitability remains modest and its market share is limited,

Moody’s expects the insurer to sustain adequate capital levels, supported by shareholders and a conservative investment portfolio.

At the group level, Fubon Financial is expected to maintain stable earnings and liquidity, underpinned by solid performance at Fubon Life and Taipei Fubon Bank. 

Whilst financial leverage is likely to rise due to upcoming capital reforms, the group’s funding flexibility remains strong. Moody’s maintains a stable outlook on the group and its key subsidiaries.