The epidemic prevention insurance has come to an end in advance, and Taiwan Life Insurance, a subsidiary of CITIC Financial Evaluation, can turn losses into profits this year.

(Photo by reporter Li Lianghui)

[Reporter Li Lianghui/Taipei Report] The Epidemic Prevention Command Center will amend the definition of Covid-19 cases. Starting from March 20, property insurance companies with confirmed cases of "mild disease" do not need to settle claims. In this regard, CITIC Financial stated that its China Trust property insurance company will not be required to pay compensation until the end of last year. 23 billion yuan has been withdrawn, and it was originally estimated that there will be a limited increase in claims this year. In addition, the epidemic prevention insurance "drawn to a close" ahead of schedule, Taiwan Life should be able to "turn losses into profits" this year.

CITIC Financial Holdings held a legal person briefing today. In the past (2022) year, due to factors such as strong growth in lending and a significant expansion of net interest margin, the subsidiary CITIC Bank's annual after-tax net profit reached a new high of 37.1 billion yuan, an annual increase of 25%. However, due to fluctuations in the capital market and the loss of the epidemic prevention insurance policy of its subsidiary China Trust Property & Casualty Insurance Co., Ltd., the after-tax loss in 2022 will reach 3.4 billion yuan, dragging down the profit of the parent company of the financial holding company.

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Chen Jiawen, general manager of CITIC Financial Holdings, analyzed the operating outlook for 2023 today, saying that the market expects the economic growth rate this year to be worse than last year, and the performance of the stock and bond markets is not good. In addition, the rate of interest rate hikes in Taiwan dollars is lower than that in US dollars, resulting in higher hedging costs , The profit performance of life insurance companies this year will face greater pressure.

However, Chen Jiawen emphasized that by the end of last year, Taiwan Life Insurance had withdrawn 23 billion yuan in epidemic prevention insurance. The current assessment is enough, even if the increase is quite limited, it will turn Taiwan Life into a profit, which is significantly better than last year.

Ye Baihong, Chief Strategy Officer of Taiwan Life Insurance, pointed out that by the end of last year, China Trust Property & Casualty Insurance had recognized a loss of 21.3 billion yuan, and the estimated overall compensation amount was 21.7 billion yuan. The amount has also dropped to 50 to 60 million yuan. Therefore, the internal evaluation of the claim settlement of the epidemic prevention insurance has come to an end. It is estimated that by the end of the policy contract, the error of the general claim amount should be only a few hundred million yuan.

However, China Trust Property & Casualty’s three capital increases last year were only 15.5 billion yuan, but the cumulative loss has reached 21.3 billion yuan. Ye Baihong said that the property insurance is bound to carry out the fourth capital increase, which is expected to start in May. At that time, the overall compensation factor Both confirmed that the required capital increase will be made in place at one time, so that the property insurance company can resume operations and meet the capital requirements of the competent authority.

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