Taiwan Insurers’ Profits Jump 70.2% in October

Taiwan’s insurance industry witnessed a remarkable surge in pre-tax profits in October, according to data from the Insurance Bureau. The overall pre-tax profit reached a staggering $10.22 billion (NT$329.8 billion), registering a 70.2% year-on-year (YoY) increase.

The life insurance enterprises played a dominant role in this growth, accounting for $9.50 billion (NT$306.3 billion) of the total, with a YoY growth rate of 70.7%. Meanwhile, non-life insurance enterprises also contributed, posting a profit of $0.73 billion (NT$23.5 billion), which was a 63.2% YoY increase. The depreciation of the NT Dollar against the US Dollar, amounting to 4.05% since the end of 2023, had a significant impact on life insurers. It led to an increase in the cumulative foreign exchange valuation reserve to $4.81 billion (NT$155.2 billion), a rise of $1.96 billion (NT$63.2 billion).

However, life insurers faced a net loss of $8.04 billion (NT$259.3 billion) due to the combined effect of exchange and hedging gains/losses and valuation reserve volatility. Despite this setback, their overseas investments yielded net gains of $21.26 billion (NT$685.8b), excluding the valuation reserve volatility effect. This shows the complex financial dynamics at play within the Taiwanese insurance sector, with life insurers experiencing both highs and lows in their financial performance during the month of October.

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