Data from the Insurance Bureau has revealed that Taiwan's insurance industry earnings in December increased by 248.1% to NT$341.5b ($10.3b), with life insurers contributing 92.4% of the total.
The life segment witnessed a 291.4% YoY surge, whereas the non-life segment saw a pre-tax profit of NT$26b, up 48.6% YoY.
Owners’ equity of insurance companies stood at NT$2,737.1b, with life insurers accounting for NT$2.6tr, an increase of NT$340.4b or 15.2% YoY. Non-life insurers saw their owners' equity rise to NT$151.1b, up NT$23.3b or 18.2% YoY.
The New Taiwan dollar had depreciated in December by 6.24% YoY against the US dollar as a result of which the foreign exchange valuation reserve of life insurers rose to NT$219.6b, increasing by NT$127.6b, including a one-time reserve of NT$35.4b.
The combined impact of exchange gains/losses, hedging gains/losses, and foreign exchange reserve volatility resulted in a net loss of NT$302.9b but life insurers’ overseas investments generated net gains of NT$848.2b, excluding valuation reserve volatility effects.