Life insurers in Taiwan would find it challenging to reduce foreign exchange losses next year because of their huge overseas investment, Taiwan Insurance Institute chairman Kuei Hsien-nung has said.
For every 1% appreciation of the Taiwanese dollar against the greenback, life insurers would experience foreign exchange losses of NT$35bn ($1.2bn), he said.
Life insurers such as Nan Shan Life Insurance, Shin Kong Life Insurance and Taiwan Life Insurance reported losses last month due to foreign exchange losses, reported The Taipei Times citing data from the companies.
Nan Shan Life reported a net loss of NT$2.36 billion for November, as the company set aside additional reserves of NT$3bn to write off part of its foreign exchange losses amid the New Taiwan dollar’s appreciation against the US dollar.
Nan Shan Life, the nation’s third largest insurer with a market share of 13.39%, reported cumulative profits of NT$37.24bn for the first 11 months, it said in a statement.
Shin Kong Life, which is the fourth largest insurer with a market share of 9.18%, posted a net loss of NT$1.63 billion last month, with cumulative profits in the first 11 months trimmed to NT$10.93bn.
Taiwan Life reported a net loss of NT$178m, with cumulative profits reduced to NT$16.38bn, company data show.