By Kao Shih-ching / Workers reporter
-
By Kao Shih-ching / Workers reporter
Native life insurance coverage corporations’ cumulative hedging bills and foreign-exchange losses rose 60 p.c from March to NT$97.eight billion (US$3.52 billion) as of the top of final month amid speedy appreciation of the New Taiwan greenback in opposition to the US greenback, Monetary Supervisory Fee knowledge confirmed.
The NT greenback gained 2 p.c from a month earlier to shut at NT$27.95 in opposition to the US greenback on the finish of final month, following depreciation of 0.eight p.c in March from a month prior, central financial institution knowledge confirmed.
With the NT greenback’s quick appreciation lowering the financial valuation of life insurers’ US dollar-denominated property, they reported mixed foreign-
change losses of NT$221 billion for final month, a 51-month excessive, the fee’s knowledge confirmed.
A robust NT greenback is rising the danger of foreign-exchanges losses for all times insurers, as 64.5 p.c of their mixed funding portfolio, price NT$18.64 trillion, is allotted abroad or denominated in US {dollars}, the fee’s knowledge confirmed.
Nonetheless, the losses had been partially offset by a acquire of NT$176.9 billion from hedging instruments, which had been principally denominated within the native foreign money. Their valuation rose with the NT greenback, the info confirmed.
The life insurers final month spent NT$10.Three billion shopping for hedging instruments, reminiscent of foreign money swaps or non-deliverable forwards, whereas they spent NT$17.9 billion of their foreign-exchange volatility reserves to soak up final month’s losses, the fee’s knowledge confirmed.
General, native life insurers’ cumulative foreign exchange losses and hedging bills totaled NT$97.eight billion, down NT$100 million from a yr earlier, the info confirmed.
Regardless of heavy foreign-exchange losses and hedging bills, life insurers’ mixed pretax revenue superior 193.1 p.c year-on-year to NT$205.2 billion for the primary 4 months, attributed to returns in booming monetary markets, the info confirmed.
Their mixed ebook worth expanded 41.2 p.c yearly to NT$2.51 trillion, the info confirmed.
Feedback shall be moderated. Maintain feedback related to the article. Remarks containing abusive and obscene language, private assaults of any type or promotion shall be eliminated and the person banned. Closing choice shall be on the discretion of the Taipei Instances.