Taiwan Life Insurance Co (台灣人壽) incurred a NT$207.86 million (US$7.16 million) net loss in the second quarter, reversing a net profit of NT$546.28 million in the previous quarter as equity market swings eroded profitability, company data showed yesterday.
That translated into a loss of NT$0.28 per share during the April-to-June period, from NT$0.74 earnings per share in the preceding quarter, according to a stock exchange filing.
The insurer pinned the blame on volatile equity markets at home and abroad, but added that it plans to increase its investment in the local bourse given the nation’s healthy economic fundamentals, an official said, asking not to be named.
“Despite ongoing financial market turmoil, we remain confident in local shares,” the official said by telephone.
The company has NT$10 billion in cash available for investments in equities, the official said.
In the first six months, the life insurer managed to stay in the black, posting NT$338.41 million in net income, from a net loss of NT$589.12 million the previous year, on recovering core businesses, the company said in a statement.
First-half earnings per share were NT$0.46, from a loss of NT$0.8 per share last year, thanks to improving revenue streams, loan loss write-backs and nonoperational income, the filing said.
The sale of a 60 percent stake in TLG Asset Management Co (台壽保投信) to Mirae Asset Global Group, South Korea’s largest fund manager, helped lift earnings, although the contribution was limited, the company said.
The divestment deal was valued at NT$303.3 million (US$10.54 million), or NT$15 per share, the life insurer said.
Taiwan Life also updated its assessment of embedded value to NT$27.2 billion as at the end of last year, an increase of 14 percent on the previous year, the company said.
Taiwan Life shares closed up 0.2 percent at NT$24.6 yesterday, underperforming the TAIEX’s 1.24 percent rebound, stock exchange data showed.
Insurance premiums amounted to NT$29.95 billion in the first half, sliding 3 percent year-on-year, while fee income declined 12.72 percent to NT$82.26 million.
The life insurer earned NT$5.18 billion from its investment portfolio, 17.36 percent of overall earnings, up 35.17 percent year-on-year, the report said.
Taiwan Life also plans to increase its real-estate investments, but it has made little further progress since acquiring Chinfon Commercial Bank’s (慶豐銀行) former headquarters for NT$2.56 billion last year.
“It is difficult to find suitable properties at fair prices at the moment,” the official said.
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