The pre-tax profit of insurance companies in Taiwan for the first six months of this year stood at NT$229.7bn ($6.99bn), 313.1% higher than in 1H2023, according to data released by the Financial Supervisory Commission (FSC).
Of this total, the pre-tax profit of life insurers amounted to NT$214.5bn, increasing by NT$162.5bn, or 312.5%, compared to the corresponding half in 2023. The pre-tax profit of non-life insurers was NT$15.2bn, increasing by NT$11.6bn or 322.26% compared to the corresponding half in 2023.
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Net results of insurance industry
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1H2024
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1H2023
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Change
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NT$ bn
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NT$ bn
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NT$ bn
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%
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Life insurance
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214.5
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52.0
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162.5
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312.5
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Non-life insurance
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15.2
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3.6
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11.6
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322.2
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Total
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229.7
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55.6
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174.1
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313.1
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Source: Financial Supervisory Commission
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Exchange gains/losses
Meanwhile, the combined impact of exchange gains/losses, hedging gains/losses and the net effect of volatility on the foreign exchange valuation reserve of life insurance enterprises in 1H2024 was a loss of NT$112.3bn.
Between 1 January and 30 June 2024, the New Taiwan dollar depreciated by 5.29% against the US dollar, and the cumulative balance of foreign exchange valuation reserve of life insurance enterprises was NT$189.9bn, increasing by NT$97.9bn.
In the first six months 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 reserve) of NT$520.2bn.
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1H 2024 NT$ bn
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Life
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Non-life
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Total
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Exchange profit/ loss
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753.5
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1.6
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755.1
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Hedging gain/(loss)
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Gains from use of hedging tools
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(569.4)
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(1.1)
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(570.5)
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Cost of hedging tools
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(198.5)
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(0.4)
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(198.9)
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Net change in reserves for forex rate changes
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(97.9)
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-
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(97.9)
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Total
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(112.3)
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0.1
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(112.2)
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Source: Financial Supervisory Commission
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Shareholders’ equity of insurance companies as of 30 June 2024 stood at NT$2,781.6bn, 28.4% higher than 12 months previously.
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Shareholders’ equity
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|
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30 June 2024
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30 June 2023
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Change
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NT$ bn
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NT$ bn
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NT$ bn
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%
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Life insurance
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2,637.8
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2,049.8
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588.0
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28.7
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Non-life insurance
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143.8
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116.3
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27.5
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23.6
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Total
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2,781.6
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2,166.1
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615.5
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28.4
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Source: Financial Supervisory Commission
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