US-Iran War Impacts Investment Income, 6 Major Life Insurers' March Profits Shrink Significantly
The outbreak of the US-Iran war heightened market uncertainty, causing bond yields to surge and impacting financial asset prices. This led to a significant 93% year-on-year drop in the March after-tax net profit of Taiwan's six major life insurance companies, totaling only NT$1.098 billion. Fubon Life and Nan Shan Life reported monthly losses. However, the first quarter overall still saw a 11% increase to NT$65.412 billion. Companies are managing through stable CSM amortization and recurring income, maintaining high foreign exchange fluctuation reserves.
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- 📰 Published: April 15, 2026 at 19:46
- 🔍 Collected: April 15, 2026 at 20:01 (15 min after Published)
- 🤖 AI Analyzed: April 15, 2026 at 20:20 (18 min after Collected)
US-Iran War Key News
Central News Agency
(Central News Agency reporters Su Ssu-yun, Lu Yen-tzu, Taipei, 15th) The US-Iran war broke out at the end of February, increasing market uncertainty. Soaring bond yields dramatically affected financial asset prices, and the life insurance industry could not escape the impact. The after-tax net profit of the six major life insurance companies in March this year shrank to only NT$1.098 billion, a year-on-year decrease of 93%. Fubon Life and Nan Shan Life experienced monthly losses.
Due to the reclassification of financial assets this year, the insurance industry's reliance on significant capital gains from the stock market to boost monthly profits has noticeably decreased. Coupled with the outbreak of the US-Iran war at the end of February, which intensified international energy price increases and capital market volatility, it not only pushed bond yields higher, leading to valuation losses on financial assets, but also impacted the life insurance industry's March profits, which fell by 90% month-on-month. Fortunately, profits in the first two months were good, and the six major life insurers' first-quarter profit was NT$65.412 billion, still a year-on-year increase of 11%.
Fubon Life stated that the escalation of the US-Iran conflict led to valuation losses on financial assets in March. In addition, the increase in taxable income and its proportion in March resulted in income tax expenses, leading to an after-tax net loss of NT$1.94 billion in March. The first-quarter after-tax net profit was NT$15.12 billion, a year-on-year decrease of 44%. The main sources of investment income in March were interest income, capital gains and dividend income from domestic and foreign stocks and funds. Fubon Life's foreign exchange price fluctuation reserve balance exceeded NT$147 billion at the end of March, a historical high, increasing by over NT$700 million month-on-month.
Cathay Life's after-tax net profit in March was NT$720 million, with cumulative after-tax net profit reaching NT$17.37 billion, a year-on-year decrease of 4.7%. In March, financial asset valuations were affected by the Middle East conflict, but due to stable CSM amortization and recurring income, operations remained stable. First-year premiums (FYP) and first-year equivalent premiums (FYPE) in March were NT$36.2 billion and NT$8.2 billion, respectively, both maintaining strong growth. Cathay Life's foreign exchange price fluctuation reserve balance exceeded NT$123 billion at the end of March.
Shin Kong Life explained that in March, benefiting from stable CSM amortization and recurring investment income, the single-month after-tax net profit was NT$3.46 billion, and cumulative after-tax net profit was NT$11.92 billion, both turning from loss to profit compared to the same period last year. Insurance business momentum was strong, with first-quarter new contract premiums reaching NT$37.7 billion, a year-on-year increase of 78%. The company will continue to monitor various core financial indicators and ensure long-term financial health by accumulating high-quality CSM stock.
Nan Shan Life pointed out that its insurance business performed steadily due to stable Contractual Service Margin (CSM) amortization and recurring income contributions. However, affected by international market volatility in March, it incurred a loss of NT$2.404 billion in March. First-quarter profit was NT$8.454 billion, a year-on-year decrease of 30%. Nan Shan Life's new contract premiums in March were approximately NT$9.1 billion, with high-protection products, wealth management products, and investment-linked annuity products being the main sales drivers.
Taiwan Life was also affected by the US-Iran war in March, with dramatic fluctuations in financial asset prices, leading to a single-month after-tax profit of NT$545 million, a year-on-year decrease of 79%. However, first-quarter after-tax profit was NT$7.752 billion, a year-on-year increase of 38%, mainly from bond and fund valuation gains, coupled with accumulated CSM amortization, and the impact of re-measuring investment-linked policies under IFRS 15.
KGI Life's profit in March was NT$717 million, a year-on-year decrease of 39%. First-quarter profit was NT$4.796 billion, a year-on-year decrease of 22%. KGI Life stated that it continues to focus on foreign currency and investment-linked products, with sales growing by 45% and 210% respectively compared to the same period last year. However, in terms of investment, affected by the US-Iran war, rising bond yields led to unrealized losses on FVTPL (Fair Value Through Profit or Loss) bonds, impacting March's profit performance, but some capital gains were realized in a timely manner.
The insurance industry will adopt International Financial Reporting Standard 17 (IFRS 17) for insurance contracts starting in 2026. The realizable profit from selling a policy is considered CSM, and CSM is released into current profit or loss. Therefore, CSM becomes an important indicator for measuring an insurance company's medium- to long-term profitability. (Editor: Lin Shu-yuan) 1150415
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Central News Agency
(Central News Agency reporters Su Ssu-yun, Lu Yen-tzu, Taipei, 15th) The US-Iran war broke out at the end of February, increasing market uncertainty. Soaring bond yields dramatically affected financial asset prices, and the life insurance industry could not escape the impact. The after-tax net profit of the six major life insurance companies in March this year shrank to only NT$1.098 billion, a year-on-year decrease of 93%. Fubon Life and Nan Shan Life experienced monthly losses.
Due to the reclassification of financial assets this year, the insurance industry's reliance on significant capital gains from the stock market to boost monthly profits has noticeably decreased. Coupled with the outbreak of the US-Iran war at the end of February, which intensified international energy price increases and capital market volatility, it not only pushed bond yields higher, leading to valuation losses on financial assets, but also impacted the life insurance industry's March profits, which fell by 90% month-on-month. Fortunately, profits in the first two months were good, and the six major life insurers' first-quarter profit was NT$65.412 billion, still a year-on-year increase of 11%.
Fubon Life stated that the escalation of the US-Iran conflict led to valuation losses on financial assets in March. In addition, the increase in taxable income and its proportion in March resulted in income tax expenses, leading to an after-tax net loss of NT$1.94 billion in March. The first-quarter after-tax net profit was NT$15.12 billion, a year-on-year decrease of 44%. The main sources of investment income in March were interest income, capital gains and dividend income from domestic and foreign stocks and funds. Fubon Life's foreign exchange price fluctuation reserve balance exceeded NT$147 billion at the end of March, a historical high, increasing by over NT$700 million month-on-month.
Cathay Life's after-tax net profit in March was NT$720 million, with cumulative after-tax net profit reaching NT$17.37 billion, a year-on-year decrease of 4.7%. In March, financial asset valuations were affected by the Middle East conflict, but due to stable CSM amortization and recurring income, operations remained stable. First-year premiums (FYP) and first-year equivalent premiums (FYPE) in March were NT$36.2 billion and NT$8.2 billion, respectively, both maintaining strong growth. Cathay Life's foreign exchange price fluctuation reserve balance exceeded NT$123 billion at the end of March.
Shin Kong Life explained that in March, benefiting from stable CSM amortization and recurring investment income, the single-month after-tax net profit was NT$3.46 billion, and cumulative after-tax net profit was NT$11.92 billion, both turning from loss to profit compared to the same period last year. Insurance business momentum was strong, with first-quarter new contract premiums reaching NT$37.7 billion, a year-on-year increase of 78%. The company will continue to monitor various core financial indicators and ensure long-term financial health by accumulating high-quality CSM stock.
Nan Shan Life pointed out that its insurance business performed steadily due to stable Contractual Service Margin (CSM) amortization and recurring income contributions. However, affected by international market volatility in March, it incurred a loss of NT$2.404 billion in March. First-quarter profit was NT$8.454 billion, a year-on-year decrease of 30%. Nan Shan Life's new contract premiums in March were approximately NT$9.1 billion, with high-protection products, wealth management products, and investment-linked annuity products being the main sales drivers.
Taiwan Life was also affected by the US-Iran war in March, with dramatic fluctuations in financial asset prices, leading to a single-month after-tax profit of NT$545 million, a year-on-year decrease of 79%. However, first-quarter after-tax profit was NT$7.752 billion, a year-on-year increase of 38%, mainly from bond and fund valuation gains, coupled with accumulated CSM amortization, and the impact of re-measuring investment-linked policies under IFRS 15.
KGI Life's profit in March was NT$717 million, a year-on-year decrease of 39%. First-quarter profit was NT$4.796 billion, a year-on-year decrease of 22%. KGI Life stated that it continues to focus on foreign currency and investment-linked products, with sales growing by 45% and 210% respectively compared to the same period last year. However, in terms of investment, affected by the US-Iran war, rising bond yields led to unrealized losses on FVTPL (Fair Value Through Profit or Loss) bonds, impacting March's profit performance, but some capital gains were realized in a timely manner.
The insurance industry will adopt International Financial Reporting Standard 17 (IFRS 17) for insurance contracts starting in 2026. The realizable profit from selling a policy is considered CSM, and CSM is released into current profit or loss. Therefore, CSM becomes an important indicator for measuring an insurance company's medium- to long-term profitability. (Editor: Lin Shu-yuan) 1150415
Choose to stand with facts, every sponsorship you make is a force to protect press freedom.
Download the Central News Agency "First-hand News" APP to stay updated with the latest news.
The text, images, and videos on this website may not be reproduced, publicly broadcast, or publicly transmitted and used without authorization.
FAQ
How did the US-Iran war affect the March profits of Taiwan's life insurance companies?
Increased market uncertainty and surging bond yields led to fluctuations in financial asset prices, causing the March after-tax net profit of the six major companies to shrink by 93% year-on-year to NT$1.098 billion.
What were the main reasons for Fubon Life and Nan Shan Life reporting monthly losses in March?
Fubon Life experienced valuation losses on financial assets due to the US-Iran conflict and increased income tax expenses, while Nan Shan Life was affected by international market volatility, both leading to monthly losses.