In the second half of last year, the net value ratio of Sanshang Meibang rose slightly to 2.19%, which still did not meet the standard.

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[Reporter Wu Xintian/Taipei Report] In the second half of 2022, the financial reports of the life insurance industry will be released one after another. In the first half of the year, there are three life insurance companies with a net value ratio of less than 3%, including Nanshan Life Insurance, Hongtai Life Insurance, and Sanshang Meibang Life Insurance; in the second half of the year, Hongtai Life Insurance and Sanshang The net worth ratio of the two companies in the United States is still not up to standard.

Last year, the central banks of various countries raised interest rates, which affected bond prices. Coupled with the sharp drop in the stock market, the unrealized benefits of financial assets in the life insurance industry shrank sharply, resulting in a sharp drop in profits and net worth.

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The Financial Supervisory Commission has set dual indicators of "capital adequacy ratio (RBC)" and "equity ratio". According to the insurance law, the capital adequacy ratio of the insurance industry must reach 200%, and the net worth ratio in the last two periods must reach 3% in one period.

If the capital of the insurance industry is insufficient, it must increase the capital to meet the standard, otherwise it will be punished by the competent authority.

Nanshan Life's net worth ratio in the first half of 2022 was 1.72%, which did not meet the statutory requirement of 3%, but the capital adequacy ratio of 318.13% met the standard.

At the end of Q3 last year, the net value of Nanshan Life Insurance once fell to minus 0.59%, which was also the only negative value among all life insurance companies.

After the reclassification of financial assets on October 1 last year, the consolidated equity increased by 326.5 billion yuan in one fell swoop, and the net value ratio rose to 5.47%.

The latest net ratio for the second half of the year is 5.55%, which is a safe pass.

In the first half of the year, Sanshang Meibang's net worth ratio was 2% and its capital adequacy ratio was 190.07%, making it the only company that failed to meet the standards. In the second half of the year, its net worth ratio rose slightly to 2.19%, but it still did not meet the standards.

Sanshang Meibang pointed out that it has completed a cash capital increase of 8.726 billion yuan last year, and is currently carrying out a cash capital increase of 500 million shares, raising funds of 2.525 billion yuan. The funds will be in place before Q1 this year; plus the reclassification of financial assets on January 1 this year, as well as the sale of real estate and The equity of Fuhua Investment Trust has been fully completed, and the net value is expected to increase by 19.158 billion.

In the first half of the year, Hongtai Life’s net worth ratio was 1.64%, and its capital adequacy ratio was 227.82%. In the second half of the year, its net worth ratio was only 1.13%, which is the last place.

Hongtai Life Insurance said that due to the spread of the epidemic last year, the international political and economic environment was turbulent, the United States raised interest rates sharply and quickly, and the Russian-Ukrainian war and other factors caused the net value ratio of the two periods to fail to meet the standard.

Hongtai Life Insurance emphasizes long-term stable operation without affecting long-term solvency, and promises to actively improve financial improvement and continue to improve the financial structure.

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