Taiwan's life insurance sector, which invests heavily in overseas markets, posted combined forex losses of NT$103 billion (US$3.4 billion) for the first half of this year, in the wake of fluctuations in the local currency against the greenback.
Among them, the eight biggest life insurers – Nan Shan Life, Cathay Life, Fubon Life, Shin Kong Life, China Life, Taiwan Life, Mercuries Life and Transglobe Life – posted a total forex loss of NT$87 billion, reported Commercial Times.
The US dollar weakened against the Taiwanese currency by 5.8% in the first six months of the year, from US$1 to NT$31.1901 at 31 December 2016 to US$1 to NT$29.4838 at 30 June 2017.
In April, the Financial Supervisory Commission asked local insurers to adjust their foreign exchange hedging to reduce the impact of the strengthening local currency against the US dollar on their earnings.
The Taiwanese currency appreciated by 6% against the US dollar in 2016, resulting in currency losses of NT$122 billion for insurers for the full year.