trending Market Intelligence /marketintelligence/en/news-insights/trending/D5bNtBXWjEu9fg0yUWbauA2 content esgSubNav
In This List

Taiwan Financial to inject NT$10B into life insurance unit

Podcast

Street Talk Episode 87

Blog

A New Dawn for European Bank M&A Top 5 Trends

Blog

Insight Weekly: US banks' loan growth; record share buybacks; utility M&A outlook

Blog

Banking Essentials Newsletter 2021: December Edition


Taiwan Financial to inject NT$10B into life insurance unit

Taiwan Financial Holding Co. Ltd. plans to inject NT$10 billion into unit BankTaiwan Life Insurance Co. Ltd. to shore up its capital, the Taipei Times reported.

The plan was approved by the legislature's finance committee.

BankTaiwan Life's capital adequacy ratio has fallen to 168% amid widening losses, below the 200% regulatory requirement. Taiwan Financial Chairman Joseph Lyu told lawmakers that pretax losses at the insurer stood at NT$3 billion and could increase to NT$4 billion this year. Negative interest spreads from sold insurance policies are dragging profitability and the currency's appreciation could result in foreign exchange losses, Lyu said.

The capital injection will help the insurer boost its risk-based capital to between 240% and 250%, Lyu added.

The Taiwanese government owns 100% of Taiwan Financial.

As of Dec. 4, US$1 was equivalent to NT$29.99.