Given that the Taiwan dollar appreciated strongly in May by about 7%, this puts huge pressure on insurance operators in Taiwan. According to Bloomberg, the industry has accumulated a net exchange loss of approximately NT$118.3 billion in the first f...
Given that the Taiwan dollar appreciated strongly in May by about 7%, this puts huge pressure on insurance operators in Taiwan. According to Bloomberg, the industry has accumulated a net exchange loss of approximately NT$118.3 billion in the first four months of this year. This may indicate that more insurance operators may suffer losses due to recent exchange rate fluctuations.
The strong NTD has caused an impact on exchange losses to Taiwan Life Insurance. The company's loss in May reached NT$2.83 billion (about S$122 million), and the loss amount exceeded NT$1.32 billion a month ago.
Taiwan Life Insurance is a subsidiary of China Trust Financial Holdings. If other subsidiaries consider the performance of their subsidiaries, CITIC Financial Holdings' unaudited after-tax surplus in May was NT$2.12 billion, and its consolidated after-tax profit for the first five months of this year was NT$24.68 billion.
Overall, Taiwanese life insurance companies have overseas investments worth NT$23 trillion, of which about 70% are calculated in foreign exchange, and most are US dollar bonds. US President Trump's tariff policy suppressed the attractiveness of US dollar assets, and in April it had driven the Taiwan dollar to appreciate by 3.6%, bringing a wave of impact on the local insurance industry.
