Life Insurance Industry's Q1 Profit Reaches NT$96.4 Billion, Up 13% YoY; March Saw Loss Due to US-Iran Conflict
Taiwan's life insurance industry recorded a profit of NT$96.4 billion in the first quarter of this year, a 13.5% year-on-year increase and a four-year high for the period. However, in March, the industry incurred a loss of NT$11.2 billion as capital market volatility, triggered by the US-Iran conflict, weakened investment portfolios.
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- 📰 Published: May 5, 2026 at 23:24
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Central News Agency
(Central News Agency reporter Su Ssu-yun, Taipei, 5th) The Financial Supervisory Commission (FSC) announced today that the life insurance industry's profit for the first quarter of this year reached NT$96.4 billion, a 13.5% year-on-year increase, setting a new four-year high for the same period. The FSC explained that with the life insurance industry adopting IFRS 17 this year, core insurance business profits have been relatively stable. However, in March, capital market volatility caused by the US-Iran conflict led to a weakening of some investment portfolios in the life insurance industry, resulting in a monthly shift from profit to loss.
The FSC today announced the life insurance industry's profits, net worth, and hedging status for the first three months of this year. The life insurance industry saw impressive profits in January and February, earning NT$55.6 billion and NT$52.0 billion respectively. However, due to market impact in March, the industry incurred a single-month loss of NT$11.2 billion, which brought the Q1 profit down to NT$96.4 billion.
The Insurance Bureau explained that with the life insurance industry adopting IFRS 17 (International Financial Reporting Standard 17 - Insurance Contracts) this year, the core insurance business profits, bolstered by the Contractual Service Margin (CSM), have been relatively stable in Q1. The main reason for the March impact was capital market volatility caused by the US-Iran conflict, which affected changes in financial assets.
Regarding hedging status, Chen Ching-yuan, Deputy Director-General of the FSC's Insurance Bureau, pointed out that the New Taiwan dollar depreciated by 2.28% in March alone. If completely unhedged, the life insurance industry would have had NT$119.8 billion in exchange gains in March. However, hedging tools used by the industry generated a loss of NT$160.4 billion. The overall hedging ratio for the life insurance industry in March was 45.15%, with a hedging tool swap cost of NT$12.0 billion. Coupled with a net change in foreign exchange valuation reserves of NT$6.3 billion in March, the total net exchange loss for the life insurance industry in March was NT$47.3 billion.
Observing Q1 hedging, as of the end of March this year, the life insurance industry's exchange gains and losses amounted to NT$96.5 billion. Because the industry has largely adopted the amortization method since this year, exchange gains and losses have shrunk relative to last year. At the end of March, hedging tool gains and losses were negative NT$118.5 billion. Additionally, swap (CS) and offshore non-deliverable forward (NDF) costs generally decreased. By the end of March, hedging tool swap costs were NT$38.0 billion, only about half of last year's amount. The net change in foreign exchange valuation reserves was negative NT$25.5 billion, resulting in a net exchange loss of NT$85.5 billion at the end of March.
In terms of net worth, the life insurance industry's Q1 performance also experienced ups and downs. From NT$2.59 trillion at the end of January, it rose to NT$2.94 trillion at the end of February due to a surge in the Taiwan stock market, then fell back to NT$2.87 trillion at the end of March due to market correction.
An official from the Insurance Bureau explained that the larger net worth fluctuation in January was due to the re-measurement of assets and liabilities under the new IFRS 17 system, while the decline in March primarily reflected the impact of the international stock market correction and the single-month loss. (Editor: Chang Chun-mao) 1150505
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(Central News Agency reporter Su Ssu-yun, Taipei, 5th) The Financial Supervisory Commission (FSC) announced today that the life insurance industry's profit for the first quarter of this year reached NT$96.4 billion, a 13.5% year-on-year increase, setting a new four-year high for the same period. The FSC explained that with the life insurance industry adopting IFRS 17 this year, core insurance business profits have been relatively stable. However, in March, capital market volatility caused by the US-Iran conflict led to a weakening of some investment portfolios in the life insurance industry, resulting in a monthly shift from profit to loss.
The FSC today announced the life insurance industry's profits, net worth, and hedging status for the first three months of this year. The life insurance industry saw impressive profits in January and February, earning NT$55.6 billion and NT$52.0 billion respectively. However, due to market impact in March, the industry incurred a single-month loss of NT$11.2 billion, which brought the Q1 profit down to NT$96.4 billion.
The Insurance Bureau explained that with the life insurance industry adopting IFRS 17 (International Financial Reporting Standard 17 - Insurance Contracts) this year, the core insurance business profits, bolstered by the Contractual Service Margin (CSM), have been relatively stable in Q1. The main reason for the March impact was capital market volatility caused by the US-Iran conflict, which affected changes in financial assets.
Regarding hedging status, Chen Ching-yuan, Deputy Director-General of the FSC's Insurance Bureau, pointed out that the New Taiwan dollar depreciated by 2.28% in March alone. If completely unhedged, the life insurance industry would have had NT$119.8 billion in exchange gains in March. However, hedging tools used by the industry generated a loss of NT$160.4 billion. The overall hedging ratio for the life insurance industry in March was 45.15%, with a hedging tool swap cost of NT$12.0 billion. Coupled with a net change in foreign exchange valuation reserves of NT$6.3 billion in March, the total net exchange loss for the life insurance industry in March was NT$47.3 billion.
Observing Q1 hedging, as of the end of March this year, the life insurance industry's exchange gains and losses amounted to NT$96.5 billion. Because the industry has largely adopted the amortization method since this year, exchange gains and losses have shrunk relative to last year. At the end of March, hedging tool gains and losses were negative NT$118.5 billion. Additionally, swap (CS) and offshore non-deliverable forward (NDF) costs generally decreased. By the end of March, hedging tool swap costs were NT$38.0 billion, only about half of last year's amount. The net change in foreign exchange valuation reserves was negative NT$25.5 billion, resulting in a net exchange loss of NT$85.5 billion at the end of March.
In terms of net worth, the life insurance industry's Q1 performance also experienced ups and downs. From NT$2.59 trillion at the end of January, it rose to NT$2.94 trillion at the end of February due to a surge in the Taiwan stock market, then fell back to NT$2.87 trillion at the end of March due to market correction.
An official from the Insurance Bureau explained that the larger net worth fluctuation in January was due to the re-measurement of assets and liabilities under the new IFRS 17 system, while the decline in March primarily reflected the impact of the international stock market correction and the single-month loss. (Editor: Chang Chun-mao) 1150505
Choose to stand with facts, every sponsorship you make is a force for protecting 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.