Taiwan’s insurance sector reported contrasting financial performance in the first five months of 2025, with life insurers recording substantial losses while non-life carriers continued to post positive results, according to the latest data from the Insurance Bureau.
Industry-wide, insurers posted a pre-tax loss of NT$49.5 billion as of May.
Life insurance companies accounted for a NT$61.7 billion loss, reflecting a year-over-year decline of NT$225.7 billion, or 137.6%.
In contrast, the non-life insurance segment maintained profitability with a pre-tax gain of NT$12.2 billion, although this figure represents a modest 2.4% decrease from the prior year.
As of the end of May 2025, the total owners’ equity across the industry stood at NT$2,185.7 billion.
Life insurers saw their equity fall to NT$2,034.5 billion, down NT$440.7 billion, or 17.8%, compared to the same period in 2024.
Non-life insurers, however, experienced growth in their equity positions, which rose to NT$151.2 billion, an increase of NT$14 billion or 10.2%.
The significant appreciation of the New Taiwan dollar – 9.53% against the US dollar since late 2024 – has impacted the valuation of foreign holdings by life insurers.
The foreign exchange valuation reserve balance decreased by NT$200.8 billion, ending at NT$18.8 billion. This figure includes NT$63.9 billion attributed to a newly adopted one-time reserve mechanism.
Considering the impact of currency movements, hedging strategies, and volatility effects, life insurers reported a combined foreign exchange-related loss of NT$263.8 billion.
Excluding valuation reserve fluctuations, overseas investment returns amounted to a net loss of NT$138.4 billion.
Recent analysis from AM Best highlighted continued growth in the non-life insurance market, where direct written premiums increased by 10.5% in 2024 to reach NT$278.5 billion (approximately US$9.2 billion). The segment’s capital and surplus also surpassed NT$150 billion.
Voluntary motor insurance remained the largest contributor, making up nearly half of all direct written premiums.
Still, sector growth slowed somewhat due to lower new car sales in the latter half of 2024 and early 2025.
To respond to the expanding electric vehicle market, Taiwan’s regulators introduced standardised motor insurance policy language for EVs in late 2024. However, adoption has been cautious.
The AM Best report indicated that profitability improvements in 2023 and 2024 followed a challenging 2022.
Insurers have revised underwriting approaches, including pulling back from less profitable policies, adjusting pricing structures, and modifying co-insurance and deductible levels.
Among the eight non-life insurers rated by AM Best, gross written premiums climbed 10.6% in 2024, totalling NT$192.8 billion. This trend was consistent across the 14 domestic providers, with travel, commercial, and voluntary motor lines contributing to the gains.
