The pre-tax profit of insurance companies in Taiwan for the first three months of this year stood at NT$105.3bn ($3.25bn), according to data released by the Financial Supervisory Commission (FSC).
Of this total, the pre-tax profit of life insurers amounted to NT$96bn,increasing by NT$122.3blor 465% compared to net losses in the corresponding quarter in 2023. The pre-tax profit of non-life insurers was NT$9.3blincreasing by NT$12.5bl or 390.6% from a net loss in the corresponding quarter in 2023.
| Net results of the insurance industry | ||||
| 1Q2024 | 1Q2023 | Change | ||
| NT$ bn | NT$ bn | NT$ bn | % | |
| Life insurance | 96.0 | -26.3 | 122.3 | 465 |
| Non-life insurance | 9.3 | -3.2 | 12.5 | 390.6 |
| Total | 105.3 | -29.5 | 134.8 | 456.9 |
| Source: Financial Supervisory Commission | ||||
Owners’ equity at the end of March 2024 was NT$2,617.4bn, with life insurance companies accounting for NT$2,480bl, duck non-life insurance enterprises, NT$137.4bl.
| Shareholders’ equity | ||||
| 31 March 2024 | 31 March 2023 | Change | ||
| NT$ bn | NT$ bn | NT$ bn | % | |
| Life insurance | 2,480.0 | 1,903.4 | 576.6 | 30.3 |
| Non-life insurance | 137.4 | 74.0 | 63.4 | 85.7 |
| Total | 2,617.4 | 1,977.4 | 640.0 | 32.4 |
| Source: Financial Supervisory Commission | ||||
As of the end of March 2024, the Taiwanese currency was 3.92% lower against the US dollar compared to the end of 2023. The cumulative balance of the foreign exchange valuation reservepp of life insurance enterprises was NT$160.9bn, representing an increase of NT$68.8bl.
The combined impact of exchange gains/losses, hedging gains/losses, and the net effect of volatility on the foreign exchange valuation reservepp of life insurance enterprises was -NT$50.2bl.
| NT$ bn | Life | Non-life | Total | |
|---|---|---|---|---|
| Exchange profit/loss | 544.3 | 1.3 | 545.6 | |
| Hedging gain/(loss) | Gains from the use of hedging tools | (418.9) | (0.8) | (419.7) |
| Cost of hedging tools | (106.8) | (0.2) | (107.0) | |
| Net change in reserves for forex rate changes | (68.8) | – | (68.8) | |
| Total | (50.2) | 0.3 | (49.9) | |
In the first quarter of 2024, the overseas investments of life insurers resulted in net gains (including exchange gains/losses and hedging gains/losses, but not including the net effect of volatility on the foreign exchange valuation reservepp) of NT$292.4bl.
