Fubon Insurance Co., Ltd. is poised for continued profitability over the next 12 to 18 months, driven by robust underwriting results and strong investment income, according to a recent report by Moody’s Ratings.
The company’s outlook has improved significantly, primarily due to a reduction in potential financial strain linked to reinsurance recoverables from COVID-related policies.
In the fourth quarter of 2024, Fubon Insurance successfully collected a large portion of these recoverables, decreasing the outstanding balance by 57% to $190 million (TW$6.4 billion). This has bolstered the insurer’s financial standing.
Fubon Insurance reported a profit of $91 million (TW$3 billion) for 2024, a notable recovery from the net loss incurred in 2023. Its combined ratio also improved to 87%, signaling strong underwriting profitability. Furthermore, the company’s capital position has strengthened, with the local risk-based capital (RBC) ratio rising to 335% by the end of 2024, up from 278% a year earlier.
Moody’s projects that Fubon’s RBC ratio will remain well above the regulatory minimum of 200% in the coming year.
The insurer has also reduced financial leverage by fully repaying its short-term borrowings and is not expected to seek new debt financing in the near future.
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