Several more insurers are likely to join Cathay Century Insurance Co (國泰世紀產險) and CTBC Insurance Co (中國信託產險) in plans to inject additional capital in the second half of this year, after writing off 5.43 million insurance policies as of yesterday, the Financial Supervisory Commission (FSC) said.
Cathay Century and CTBC have reported to the commission that they intend to conduct capital injections of NT$10 billion (US$336.41 million) to NT$4 billion respectively, Insurance Bureau Director-General Shih Chiung-hwa (施瓊華) told a virtual news conference.
The commission expects several insurers to follow suit this year after they have a better understanding of the losses expected from COVID-19 insurance policy compensations, Shih said.
Fubon Insurance Co (富邦產險) on Wednesday said that it has assigned more staff members to address the sales of COVID-19 insurance policies.
Additionally, during May and last month Fubon compensated 103,000 policyholders with combined payments of NT$4.08 billion, 15 times its NT$260 million payouts from January to April, it said.
The FSC is to continue monitoring disputes between policyholders and insurance companies, Shih said.
Meanwhile, local property insurers reported a combined pretax loss of NT$16.2 billion in May from COVID-19 insurance compensation payouts and setting aside reserves to cushion further losses, Shih said.
The losses in May erase property insurers’ net profits for the first half of the year and led to a cumulative pretax loss of NT$9.6 billion as of the end of May, the commission said.
Life insurance providers in contrast reported a combined pretax loss of NT$7.1 billion in May, in light of greater foreign exchange losses, tumbling stocks and lower unrealized bond gains amid central bank rate hikes worldwide, the commission said.
Because of a rapid appreciation of the New Taiwan dollar versus the US dollar, the insurers’ combined forex losses tallied NT$33.3 billion in May, hitting a 13-month high, the data showed.
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s biggest contract chipmaker, has decided to slow down its 3-nanometer chip production as Intel Corp, one of its major customers, plans to push back the launch of its new Meteor Lake tGPU chipsets to the end of next year, market researcher TrendForce Corp (集邦科技) said yesterday. That means Intel has canceled almost all of the 3-nanometer capacity booked for next year, with only a small amount of wafer input remaining for engineering verification, the Taipei-based researcher said in a report. Based on Intel’s original schedule, TSMC was to start producing the new chipsets in
DATA SHOW DOWNTURN: Manufacturing in Taiwan contracted as production and demand slumped, while growth in chip exports last month eased in South Korea World chip sales growth has decelerated for six straight months in another sign that the global economy is straining under the weight of rising interest rates and mounting geopolitical risks. Semiconductor sales rose 13.3 percent in June from a year earlier, down from 18 percent in May, data from the global peak industry body showed. The slowdown is the longest since the US-China trade dispute in 2018. The three-month moving average in chip sales has correlated with the global economy’s performance in the past few decades. The latest weakness comes as concern about a worldwide recession has prompted chipmakers such as Samsung
Italy is close to clinching a deal initially worth US$5 billion with Intel Corp to build an advanced semiconductor packaging and assembly plant in the country, two sources briefed on discussions said yesterday. Intel’s investment in Italy is part of a wider plan announced by the US chipmaker earlier this year to invest US$88 billion in building capacity across Europe, which is striving to cut its reliance on Asian chip imports and ease a supply crunch that has curbed output in the region’s strategic auto sector. Asking not to be named due to the sensitivity of the matter, the sources said the
Malaysia is scrambling to protect its assets as the descendants of the last sultan of the remote Philippine region of Sulu look to enforce a US$15 billion arbitration award in a dispute over a colonial-era land deal. In 1878, two European colonists signed a deal with the sultan for the use of his territory in present-day Malaysia — an agreement that independent Malaysia honored until 2013, paying the monarch’s descendants about US$1,000 per year. Now, 144 years later after the original deal, Malaysia is on the hook for the second-largest arbitration award on record for stopping the payments after a bloody incursion