Local life insurers reported record combined pre-tax profits of NT$259.2 billion (US$9.28 billion) for the first six months of this year, up 155 percent from the same period last year as investment gains amid booming stock markets offset foreign-exchange losses stemming from a stronger New Taiwan dollar, data from the Financial Supervisory Commission showed on Friday.
Cumulative foreign-exchange losses among life insurers were NT$135.4 billion for the first six months, down 10 percent from record losses of NT$151.8 billion in the same period last year, the data showed.
The foreign-exchange losses came as the NT dollar rose 2.2 percent against the US dollar over the six months, reducing the valuation of insurers’ US dollar-denominated assets, the commission said.
However, the stronger NT dollar boosted their hedging gains to NT$155.9 billion, the commission said.
Despite the heavy forex losses, life insurers still favored investing in overseas markets to pursue higher returns.
As of the end of June, 65.31 percent of their combined investment portfolio, worth NT$19.95 trillion, was invested in foreign markets, the data showed.
Their combined profits from overseas investments totaled NT$416.6 billion in the first six months, the commission said.
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