Taiwan’s insurance industry reported varying financial results in October 2025, with life insurance carriers recording lower earnings and non-life insurers reporting higher profit, according to data released by the Financial Supervisory Commission (FSC).
The sector’s consolidated pre-tax earnings were NT$167.8 billion for the month. Life insurance operations generated NT$138 billion in pre-tax income, a 54.9% decline from year-ago levels, reflecting a NT$168.3 billion decrease. Non-life insurers reported pre-tax profit of NT$29.8 billion, a 26.8% increase, or NT$6.3 billion more than in October 2024.
Life insurers’ owners’ equity stood at NT$2,802.2 billion, an increase of NT$222.6 billion, or 8.6%, compared with a year earlier. Non-life insurers’ owners’ equity reached NT$167.3 billion, up NT$18.2 billion, or 12.2%, year-on-year. Total owners’ equity for the insurance sector was NT$2,969.5 billion.
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The increase in equity was driven by capital generation from sources other than current-period underwriting profit, including investment-related income and changes in capital deployment, which contributed to larger balance sheets even as life insurance earnings declined.
Demand for foreign-currency denominated life insurance policies increased through September 2025. Life insurers reported new premium volumes in this category totalling approximately NT$305.805 billion, a 43% increase from NT$214.090 billion in the year-ago period.
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Sales were split between investment-linked and traditional products. Investment-linked insurance accounted for NT$49.155 billion, or 16% of foreign-currency sales, up 46% year-on-year from NT$33.764 billion. Traditional insurance products made up the larger share at NT$256.65 billion, or 84% of foreign-currency revenues, a 42% increase from NT$180.326 billion in the prior-year period.
The increase in foreign-currency product sales occurred alongside currency movements that affected the sector’s overseas investments and valuation positions.
Foreign exchange movements influenced portfolio performance in October. Since calendar year-end 2024, the New Taiwan Dollar strengthened 6.61% relative to the US Dollar, affecting life insurers’ international exposures.
The stronger currency increased life insurers’ foreign exchange valuation reserves to NT$384.5 billion, up NT$164.9 billion from year-earlier levels. However, exchange rate fluctuations, combined with hedging transactions and volatility adjustments, resulted in a negative NT$680.6 billion net impact on life insurers’ foreign exchange valuation reserves.
Overseas investment operations – including exchange gains or losses and hedging gains or losses but excluding volatility reserves – resulted in net gains of NT$237.2 billion.
