Taiwan: Strong local currency a heavy drag on life sector's 2017 profits
Source: Asia Insurance Review | Mar 2018
The Taiwanese life insurance industry reported record net forex losses of NT$176.1 billion (US$6 billion) for 2017, as the local currency strengthened against the greenback, according to data from the Financial Supervisory Commission (FSC).
Gross exchange loss was NT$648.8 billion while hedging gains stood at NT$456.8 billion.
The FSC said that the life sector showed pre-tax profits of NT$116.7 billion, the fourth year running in which it posted operating net gains exceeding NT$100 billion. If the net forex losses of NT$176.1 billion were not included, the industry would have reported net profits of NT$292.8 billion for 2017. This means that net forex losses eroded net non-forex gains by 60%.
Total life insurance premiums in Taiwan reached NT$3,209 billion last year, 5.2% higher than in 2016, according to statistics from the Life Insurance Association. First-year life insurance premiums totalled NT$1,059 billion last year, a decline of 11.4% compared to 2016. A