Taiwan insurers mull injecting new funds as COVID-19 claims cut down profit
Two insurers plan to raise capital once their risk-based capital falls below 250%.
Five local insurers in Taiwan are thinking about raising fresh funds to bolster their financial strength as COVID-19 insurance claims payout took a huge toll on their profits according to government watchdog the Financial Supervisory Commission.
The insurers considering new plans to raise capital are, Fubon Insurance Co., Cathay Century Insurance Co., Tokio Marine Newa Insurance Corp., CTBC Insurance Co., Chung Kuo Insurance Co., and Hotai Insurance Co. The FSC said these insurers are five of the six with the greatest COVID-19 insurance sales.
Recently, the FSC said COVID-19 claims may exceed the $1.39b initial estimate.
The FSC said two of the insurers plan to raise capital once their risk-based capital falls below 250%. The FSC said they requested that insurance firms maintain a ratio above 200%.
The commission predicts that new capital injections would not be carried out before the end of this month, given the continued rise of COVID-19 claims in the country.
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