The New Taiwan dollar exchange rate increased 3.71% to 1.15 yuan in November, causing heavy losses to the life insurance industry. According to the latest statistics released by the Financial Supervisory Commission on the 28th, at the end of November, the general life insurance industry had lost 171.2 billion yuan due to “switching costs”, which was much more than the 113 billion yuan that won in the previous November!
The New Taiwan Dollar suffered from the sudden rise! The life insurance industry suffered a huge loss of 170 billion yuan in exchange costs, which was more than it earned in the previous November. Photo/retrieved from Getty Images (Anurak Tepkhamtai via Getty Images)
The Financial Supervisory Commission today (28th) published the insurance industry’s profit and loss, net worth, exchange profit and loss, hedging profit and loss, and reserves for changes in foreign exchange prices in November. Among them, the life insurance industry at the end of November has earned a total of 113 billion yuan, the property and casualty insurance industry has earned 16.1 billion yuan, and the total insurance industry has earned 129.1 billion yuan.
However, at the end of October, the pre-tax profit and loss of the life insurance industry was 179.4 billion yuan, which means that the life insurance industry lost as much as 66.4 billion yuan in one month in November, which is the one-month loss highest but one in the last three years. According to statistics from the Financial Supervisory Commission, the life insurance industry has experienced one month profits and losses in the last three years (January 2019 to November 2020) Among them, there the top three companies with the largest pre-tax losses in and a loss of 75.3 billion yuan in November 2011 and a loss of 6.64 billion yuan in November 2012. billion, a loss of 44.2 billion yuan in December 2011
In the first ten months of the year, the New Taiwan dollar generally fell more than it rose. From a peak of 29.7 yuan after the Lunar New Year, it once fell to around 32.43 yuan in October. The insurance industry is not only does a lot. of exchange profits to embellish his books, but he also had more money to spend. The “fund” of foreign exchange reserves was replenished, but the New Taiwan dollar took a big turn in November, rising sharply as much as 1.15 yuan. Huge exchange costs caused the life insurance industry to suffer huge losses.
According to figures released by the Financial Supervisory Commission today (28th), at the end of November, the life insurance industry covers the total impact of exchange gains and losses, hedging gains and losses, and net changes in foreign exchange fund prices, oy the hedging instrument evaluation losses alone are as high as 535.1 billion yuan. , and even used 100.3 billion yuan in foreign exchange price reserves, but the result was a total “exchange cost” of 171.2 billion yuan, which was more than the 113 billion yuan cumulative surplus earned by the life insurance industry in during the first 11 months of this year.
The Financial Supervisory Commission reported that at the end of November 2011, the exchange rate of the New Taiwan dollar against the US dollar had depreciated by 1.77% compared to the end of 2011. The cumulative balance of foreign exchange price change reserves of the life insurance industry was 128.6 billion yuan, a decrease of 100.3 billion yuan from the end of 2011. The total effect of the life insurance industry’s net changes in exchange gains and losses, hedging gains and losses, and foreign exchange price reserves was -171.2 billion yuan.During the same period , the net foreign investment profit of the life insurance industry (including exchange gains and losses, hedging gains and losses, but excluding foreign exchange price change reserves) was 540.9 billion yuan.
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Yahoo Finance special correspondent Ye Yiru: 22 years of experience in mainstream financial media From the Web1.0 bubble in 2000 to Meta Yuanverse Web3.0, he has seen the rise and fall of Taiwan’s large and small enterprise groups and has experienced five international financial crises. We believe that finance is life and everywhere, no matter how difficult financial information is, we should explain it in a simple way. Everyone, young and old, should manage money. If you don’t manage money, money won’t worry about you.
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