Cathay Life Insurance maintained its status as the flagship subsidiary of Cathay Financial Holdings as it reported an after-tax net profit for the single month of June of NT$8.94bn ($272m), and a cumulative after-tax profit of NT$48.26bn for the first half of the year, according to corporate announcements made by the group.
The life insurer contributed two-thirds of the total after-tax profits of Cathay Financial Holdings. Cathay Life’s 1H2024 net profit was the second highest ever recorded.
Meanwhile, Cathay Century Insurance, the non-life insurance arm of the group has posted record after-tax profits for the first half of this year. The non-life insurer’s after-tax net profit for June was NT$330m while the cumulative after-tax net profit for 1H2024 was NT$1.33bn, hitting a new high. The company posted premiums reaching NT$18.54bn for the first six months of the year, a growth of 18% compared to the corresponding half in 2023.
|
After-tax net profit
|
June 2024
|
1H2024
|
|
NT$
|
Contribution
|
NT$
|
Contribution
|
|
Cathay Life
|
8.94bn
|
69.8%
|
48.26bn
|
67.4%
|
|
Cathay Century
|
0.33bn
|
2.6%
|
1.33bn
|
1.9%
|
|
Group
|
12.80bn
|
100.0%
|
71.61bn
|
100.0%
|
Cathay Life
Underpinned by interest and recurring income, the overall profit performance of Cathay Life in 1H2024 is deemed as good.
Since the beginning of this year, the capital market has risen, the company's investment operations have been stable, and the insurance industry has been operating steadily, driving overall financial performance. The US inflation rate in June was lower than expected, boosting market expectations of an interest rate cut in September, spurring the stock market to rise, and causing US bond interest rates to fall simultaneously.
Cathay Life says that changes to regulations have driven the sales of out-of-pocket medical insurance. At the same time, the sales of health and accident insurance products have grown steadily.
The life insurer is pursuing a long-term and stable investment strategy, improving policy quality and optimising its services to stabilise its sales base.
Cathay Financial Holdings announced that its after-tax net profit in the first half of the year totalled NT$71.61bn, an annual increase of 217%. Since the beginning of this year, the core business momentum of its subsidiaries has been strong.
Apart from the two insurance companies, the group also consists of Cathay United Bank, Cathay Securities, Cathay Securities Investment Trust and Cathay Private Equity.