Nan Shan Life Insurance Co (南山人壽), Shin Kong Life Insurance Co (新光人壽) and Taiwan Life Insurance Co (台灣人壽) reported losses last month due to foreign exchange losses, the companies’ data showed.
Nan Shan Life on Thursday reported a net loss of NT$2.36 billion (US$82.98 million) for last month, as the company set aside additional reserves of NT$3 billion to write off part of its foreign exchange losses amid the New Taiwan dollar’s appreciation against the US dollar.
The company’s first-year premiums (FYP) fell 2 percent annually to NT$7.38 billion last month, and its cumulative FYP totaled NT$97.8 billion for the first 11 months, down 38 percent year-on-year.
Nan Shan Life, the nation’s third-largest insurer with a market share of 13.39 percent, reported cumulative profits of NT$37.24 billion for the first 11 months, it said in a statement.
Shin Kong Life, which is the fourth-largest insurer with a market share of 9.18 percent, posted a net loss of NT$1.63 billion last month, with cumulative profits in the first 11 months trimmed to NT$10.93 billion.
Taiwan Life reported a net loss of NT$178 million, with cumulative profits reduced to NT$16.38 billion, company data showed.
It would be challenging for life insurers to reduce foreign exchange losses next year due to their huge overseas investment, Taiwan Insurance Institute chairman Kuei Hsien-nung (桂先農) said on Friday.
For every 1 percent appreciation in NT dollar against the greenback, life insurers would experience foreign exchange losses of NT$35 billion, he said.
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