The Financial Regulatory Commission announced today (26) the profit and loss of the life insurance industry in September. Affected by the turbulence in the capital market in September, the net value of the life insurance industry in a single month evaporated 133 billion yuan, and it also took advantage of the opportunity to kill nearly 40 billion yuan in Taiwanese stocks.
If the life insurance industry did not avoid risk at all in September, the accumulated overseas investment exchange losses amounted to NT$247.9 billion, of which the exchange cost of hedging instruments was 97.2 billion yuan, but the hedging instruments had an appraisal benefit of 154.5 billion yuan, plus 12.2 billion yuan. The foreign exchange reserve of RMB, one by one, kept the total exchange cost at 177.5 billion RMB, and the single-month exchange cost increased by 8.5 billion RMB in September.
As of the end of September, the exchange rate of the New Taiwan dollar against the US dollar had appreciated by 2.3% compared to the end of last year. The accumulated balance of reserves for foreign exchange price changes in the life insurance industry was 34 billion yuan, a monthly increase of 5.1 billion yuan, but a decrease of 12.2 billion yuan from the end of last year.
The net benefits of foreign investment in the life insurance industry (including exchange gains and losses, hedging gains and losses, but excluding net changes in foreign exchange price changes) totaled 596.4 billion yuan.
The life insurance industry had a pre-tax surplus of 359.7 billion yuan in the first September, an increase of 163 billion yuan over the same period last year; however, due to the increased turbulence in the capital market, the cumulative net value of the life insurance industry fell to 2.55587 billion yuan in the first September, which evaporated in a single month. 133 billion yuan, but still an increase of 362.3 billion yuan or 16.5% over the same period last year.
Taiwan stocks fell 3.18% in September. If the life insurance industry’s holdings of Taiwan stocks declined naturally, the market value of Taiwan stocks in September should only fall to 241.3 billion yuan, but the actual market value of Taiwan stocks announced today by the FSC fell below. The 2 trillion yuan mark, leaving 1974.8 billion yuan, which means that the life insurance industry was reduced by about 39.5 billion yuan in September, and the proportion of Taiwan stocks held in its available funds has also dropped to 6.71%.
As for overseas stocks, the life insurance industry sold another 24.8 billion yuan in September, following a reduction of 25 and 30 billion yuan in July and August, which brought the life insurance industry’s share of overseas stocks to 629.4 billion yuan, a record low in 11 months.
