Saturday, January 20, 2018

Taiwanese insurers hurt by China losses

A Legislative Yuan analysis revealed that three Taiwanese insurance firms are facing risks of incurring heavy losses from their investments in China.

The red flag was raised after Shin Kong Life Insurance saw the book value of its Chinese venture fall to a zero at the end of the second quarter of this year.

Among the local insurers that have made investments in China via joint ventures with Chinese partners are Shin Kong Life Insurance, Cathay Life Insurance and Taiwan Life Insurance, a subsidiary of CTBC Financial Holdings.

According to the analysis, these three insurers are still in the midst of recuperating from losses at their Chinese ventures, with loss-to-investment ratios of 100%, 47.87% and 59.16%, respectively, as of end of first half of this year.

The ratio is calculated by dividing total losses by cumulative investments.

Local property insurance companies’ investments in China also did not fare well, the analysis showed.

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