Shin Kong Life Insurance's Foreign Exchange Valuation Reserve Decreases by 40%, Peng Jin-lung: Not an Accounting Issue
Shin Kong Life Insurance's foreign exchange valuation reserve decreased by 43.7% from NT$99.6 billion at the end of 2025 to NT$56 billion on January 1, 2026. Financial Supervisory Commission Chairman Peng Jin-lung stated that this is a legal reserve issue, not an accounting problem, and withdrawals require FSC approval.
📋 Article Processing Timeline
- 📰 Published: May 11, 2026 at 12:51
- 🔍 Collected: May 11, 2026 at 13:02 (10 min after Published)
- 🤖 AI Analyzed: May 12, 2026 at 01:31 (12h 29m after Collected)
Central News Agency
(Central News Agency reporter Su Ssu-yun, Taipei 11th) Shin Kong Life Insurance's foreign exchange valuation reserve was NT$99.6 billion at the end of 2025, and on January 1, 2026, the opening balance was NT$56 billion, a decrease of 43.7%. Shin Kong Life Insurance attributed this to different accounting bases, which has attracted attention. Financial Supervisory Commission Chairman Peng Jin-lung said today that the foreign exchange valuation reserve is a legal reserve, not an accounting issue, and there are relevant regulations for its allocation and recovery. Recovery also requires the approval of the Financial Supervisory Commission.
Outside interpretations suggest that the Financial Supervisory Commission has officially responded by not agreeing with Shin Kong Life Insurance's significant reduction in its foreign exchange valuation reserve.
The Legislative Yuan's Finance Committee reviewed the Financial Supervisory Commission's 2026 budget proposal this morning and conducted interpellations.
Taishin Shin Kong Financial recently held an investor conference, and its presentation revealed that Shin Kong Life Insurance's foreign exchange price fluctuation reserve, when opened on January 1, 2026, decreased from NT$99.6 billion at the end of 2025 to NT$56 billion, a reduction of NT$43.6 billion, or 43.7%. The company explained that this was the result of accounting base adjustments, not a "recovery" of the foreign exchange valuation reserve. Since the foreign exchange valuation reserve is a liability item, its reduction would be reflected in an increase in net worth, which has attracted attention from the industry.
Kuomintang legislator Lai Shyh-bao questioned why Shin Kong Life Insurance's foreign exchange price fluctuation reserve balance decreased by 40% from NT$99.6 billion, and what the FSC's stance was, as Shin Kong Life Insurance claimed it was an accounting issue. Democratic Progressive Party legislator Wang Shih-chien questioned whether Shin Kong Life Insurance's move was tantamount to acting first and reporting later.
Peng Jin-lung stated that the foreign exchange valuation reserve is a legal reserve, and the law stipulates the allocation of legal reserves. This is not an accounting issue, and the Insurance Bureau has also explained it to the public. There is a certain legal procedure for recovering the foreign exchange valuation reserve, and it also requires the approval of the Financial Supervisory Commission. The regulations are very clear.
Legislators were concerned whether the "Insurance Act" or the "Financial Holding Company Act" was cited. Peng Jin-lung pointed out that the Financial Holding Company Act mainly regulates financial holding companies, and the Insurance Act regulates insurance companies. Both are laws of the same level and do not conflict. (Edited by Wan Shu-chang) 1150511
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(Central News Agency reporter Su Ssu-yun, Taipei 11th) Shin Kong Life Insurance's foreign exchange valuation reserve was NT$99.6 billion at the end of 2025, and on January 1, 2026, the opening balance was NT$56 billion, a decrease of 43.7%. Shin Kong Life Insurance attributed this to different accounting bases, which has attracted attention. Financial Supervisory Commission Chairman Peng Jin-lung said today that the foreign exchange valuation reserve is a legal reserve, not an accounting issue, and there are relevant regulations for its allocation and recovery. Recovery also requires the approval of the Financial Supervisory Commission.
Outside interpretations suggest that the Financial Supervisory Commission has officially responded by not agreeing with Shin Kong Life Insurance's significant reduction in its foreign exchange valuation reserve.
The Legislative Yuan's Finance Committee reviewed the Financial Supervisory Commission's 2026 budget proposal this morning and conducted interpellations.
Taishin Shin Kong Financial recently held an investor conference, and its presentation revealed that Shin Kong Life Insurance's foreign exchange price fluctuation reserve, when opened on January 1, 2026, decreased from NT$99.6 billion at the end of 2025 to NT$56 billion, a reduction of NT$43.6 billion, or 43.7%. The company explained that this was the result of accounting base adjustments, not a "recovery" of the foreign exchange valuation reserve. Since the foreign exchange valuation reserve is a liability item, its reduction would be reflected in an increase in net worth, which has attracted attention from the industry.
Kuomintang legislator Lai Shyh-bao questioned why Shin Kong Life Insurance's foreign exchange price fluctuation reserve balance decreased by 40% from NT$99.6 billion, and what the FSC's stance was, as Shin Kong Life Insurance claimed it was an accounting issue. Democratic Progressive Party legislator Wang Shih-chien questioned whether Shin Kong Life Insurance's move was tantamount to acting first and reporting later.
Peng Jin-lung stated that the foreign exchange valuation reserve is a legal reserve, and the law stipulates the allocation of legal reserves. This is not an accounting issue, and the Insurance Bureau has also explained it to the public. There is a certain legal procedure for recovering the foreign exchange valuation reserve, and it also requires the approval of the Financial Supervisory Commission. The regulations are very clear.
Legislators were concerned whether the "Insurance Act" or the "Financial Holding Company Act" was cited. Peng Jin-lung pointed out that the Financial Holding Company Act mainly regulates financial holding companies, and the Insurance Act regulates insurance companies. Both are laws of the same level and do not conflict. (Edited by Wan Shu-chang) 1150511
Choose to stand with facts, every sponsorship you make is a force to protect press freedom.
Download the Central News Agency's "First-hand News" APP to stay updated with the latest news.
The text, images, and audio/video on this website may not be reproduced, publicly broadcast, publicly transmitted, or utilized without authorization.