Taiwan insurance industry profits continues downward spiral

Life insurer profits dropped by 23.6% whilst non-life fell by 203.2%

Taiwan’s insurance industry pre-tax profits continue to fall in May with the pre-tax profit of life insurance firms dropping 23.6% to $5.70b year-on-year (YoY) and non-life falling 203.2% to $320m YoY, according to statistics released by the Financial Supervisory Commission.

Insurance firms’ owner's equity fell 33% to $55.37b YoY whilst non-life insurance businesses’ owner's equity dropped 13.4% to $4.30b

Meanwhile, the combined impact of exchange gains/losses, hedging gains/losses and the net effect of volatility on the foreign exchange valuation reserve of life insurance enterprises was $640m. Over the same period, the overseas investments of life insurers resulted in net gains (including exchange gains/losses and hedging gains/losses, but not including the net effect of volatility on the foreign exchange valuation reserve) of $16.46b.

Taiwan's insurance industry also reported YoY drops in April.