Taiwan’s insurers witness decrease in life, non-life jumps in November

Life insurance fell 47.7% in pre-tax profits whilst non-life jumped more than double on a year-on-year basis.

The insurance sector in Taiwan as of the end of November 2023 shows a mixed bag, with significant shifts in both profits and owners' equity among life and non-life insurance enterprises.

According to data from the Financial Supervisory Commission (FSC) of Taiwan, life insurers saw a substantial decrease in pre-tax profits amounting to NT$113b. It fell 47.7% year-on-year (YoY) compared to the previous year. This significant decrease of NT$103.1b indicates potential challenges in the sector, such as increased claims, reduced investment returns, or other operational difficulties.

Non-life insurance enterprises experienced an increase in pre-tax losses, amounting to NT$16.1b. This represents a 110.4% YoY increase, indicating deteriorating financial performance in this sector.

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Despite the decrease in pre-tax profits of the life segment, there was a substantial increase in owners' equity of 23.7% YoY, reaching NT$2,097.1b. 

This increase, amounting to NT$401.8b, suggests a strengthening of the capital base, possibly through retained earnings or additional capital injections.

Non-life segment also saw a significant increase in owners' equity, by 91.8% YoY, reaching NT$126.4b. This indicates a robust enhancement in their financial stability.