According to the statistics of the Financial Supervisory Commission, the net value of the life insurance industry has rebounded sharply. In October, the net value increased by 602.5 billion yuan in a single month, and the overall net value returned to more than one trillion yuan.

(Photo by reporter Wang Menglun)

[Reporter Wang Menglun/Taipei Report] The net worth storm in the life insurance industry is over!

Since the six major life insurance companies launched the "reclassification of financial assets" in October, according to the latest statistics released by the Financial Supervisory Commission, the net value of the life insurance industry in the first ten months of this year reached 1.431 billion yuan, not only returning to the trillion yuan mark, but also In October, the monthly increase was 602.5 billion yuan.

Since the United States began to raise interest rates in a "hawk style" in March this year, the net worth of life insurance companies holding a large number of bonds has shrunk sharply every month; according to statistics, the net worth of the life insurance industry in the first three quarters (the first nine months) was only 828.5 billion yuan, which has been crazy this year. Minus 1.89 trillion yuan, a record low since the end of 2014.

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According to the law, if the "equity ratio" of the life insurance industry is lower than 3% for two consecutive years (two semi-annual years), it constitutes insufficient capital and must increase capital according to the law.

However, one month later, the Financial Supervisory Commission announced the latest statistics. The net value of the life insurance industry in the first 10 months reached 1.431 trillion yuan. A substantial increase of 602.5 billion yuan.

In October, the net value rebounded sharply, mainly because the Accounting Research and Development Fund responded to the inquiry. As long as the life insurance industry complies with the requirements of the IFRS 9 International Accounting Standards and the evaluation and approval of the company's management, the "reclassification of financial assets" can be carried out; as far as we know, Six life insurance companies have reclassified their financial assets in October, including Cathay Pacific, Nanshan, Taiwan Life Insurance, Shin Kong, China Life Insurance, and Prudential Life, which drove the net value of life insurance to rise to more than one trillion yuan in October.

However, if we compare this year, the net value of the life insurance industry was 2,722.2 billion yuan at the end of last year, and it was 1,431 billion yuan at the end of October this year, which means that the net value of this year still decreased by 1,291.2 billion yuan, mainly due to the bonds caused by the previous interest rate hike Evaluation loss.

In addition, the Financial Supervisory Commission also announced the profit of the life insurance industry at the same time. The pre-tax profit and loss of the life insurance industry in the first ten months was 291.4 billion yuan, a decrease of 83.9 billion yuan or a decline of 22.4% compared with the same period last year, which was mainly affected by fluctuations in the stock and bond markets this year.

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