Taiwan’s insurers report $650m loss in H1 2025 earnings

In contrast, non-life insurers posted a pre-tax profit of $0.52b.

Taiwan’s insurance sector recorded a combined pre-tax loss of $647.4m (NT$19.4b) as of end-June 2025, driven by a steep decline in life insurers’ earnings, according to the Insurance Bureau.

Pre-tax profit of insurance enterprises at end-June 2024 was $7.66b (NT$229.7b)

Pre-tax profit for life insurance enterprises fell sharply to $0.12b (NT$3.5b), down by $6.97b (NT$211b) or 98.4% from a year earlier.

In contrast, non-life insurers posted a pre-tax profit of $0.52b (NT$15.9b), up $0.02b (NT$0.7b) or 4.6% year-on-year.

The decline in life insurers’ profits was accompanied by a significant drop in owners' equity, which fell 16% to $73.1b (NT$2,215.2b).

The NT dollar appreciated 9.63% against the US dollar over the first half of the year, leading to an increase of $0.46b (NT$13.9b) in life insurers’ foreign exchange valuation reserves, which totaled $7.71b (NT$233.5b).

However, the combined impact of exchange rate movements, hedging activities, and valuation effects on reserves resulted in a negative $17.23b (NT$522b).

Excluding valuation effects, life insurers’ overseas investments posted net losses of $3.36b (NT$101.8b) during the period.

($1.00 = NT$29.99)