Taiwan insurers post $9.47b pre-tax profit in August

Its non-life insurance segment witnessed a twofold increase.

Taiwan’s insurance enterprises recorded a pre-tax profit of $9.47b (NT$305.4b) end-August. 

Life insurance enterprises contributed $8.86b (NT$285.7b), a significant increase of $4.23b (NT$136.4b), or 91.4%, compared to the previous year. 

Meanwhile, non-life insurance enterprises reported a pre-tax profit of $0.61b (NT$19.7b), marking a twofold increase (105.2%), or $0.31b (NT$10.1b).

Owners' equity in the insurance sector stood at $87.56b (NT$2,824.5b) by the end of August 2024. 

Life insurers accounted for $83.00b (NT$2,677.3b), reflecting a 28.1% rise, or $18.23b (NT$588b), year-on-year. Non-life insurers saw their owners' equity grow by 21.8%, or $0.82b (NT$26.3b), reaching $4.56b (NT$147.2b).

During this period, the NT Dollar depreciated by 3.77% against the US Dollar since the end of 2023. 

The cumulative balance of the foreign exchange valuation reserve for life insurance companies increased by $2.56b (NT$82.7b), reaching $5.42b (NT$174.7b). 

Despite this, the combined effect of exchange rate fluctuations and hedging activities resulted in a net foreign exchange impact of $-5.57b (NT$-179.6b) for life insurers. 

Nevertheless, their overseas investments yielded net gains of $18.85b (NT$608.2b), excluding the net effect of volatility on the foreign exchange reserve.

($1.00 = NT$32.16)