Fubon Insurance seen to record profit rebound with stronger underwriting

Last year the insurer bagged $91m, a rebound from the net loss in 2023.

Fubon Insurance Co., Ltd.’s profitability is expected to continue, recovering over the next 12 to 18 months, supported by strong underwriting results and investment income, according to Moody’s Ratings.

The change in outlook reflects a significant reduction in potential financial strain related to reinsurance recoverables from COVID-related policies. 

In the fourth quarter of 2024, Fubon Insurance collected a substantial portion of these recoverables, reducing the outstanding balance by 57% to $190m (TW$6.4b).  

The insurer's financial position has strengthened over the past year, with a profit of $91m (TW$3b) in 2024 compared to a net loss in 2023. 

Its combined ratio improved to 87%, indicating solid underwriting profitability. Capitalisation has also improved, with the local risk-

based capital (RBC) ratio rising to 335% at the end of 2024 from 278% a year earlier. 

Moody’s anticipates the RBC ratio will remain well above the regulatory minimum of 200% in the coming year. 

The insurer has fully repaid its short-term borrowings, reducing financial leverage, and is not expected to raise new debt financing.