KUALA LUMPUR, Sept 17 (Bernama) -- Global credit rating agency, AM Best has revised its outlook on Taiwan’s non-life insurance segment to stable from negative, citing a recovery of capital strength among carriers in 2023 following sizeable pandemic-related losses in the previous year.
As detailed in the Best’s Market Segment Report, “Market Segment Outlook: Taiwan Non-Life Insurance”, also underpinning the outlook revision are insurers’ prudent underwriting and investment strategies, along with solid top-line growth in key product lines.
According to the report, the segment’s capital position more than doubled in 2023, driven by substantial capital injections, reserve releases and organic earnings growth.
Despite this recovery, capital levels have remained below pre-pandemic figures, in addition to the non-life sector also reported improved operating profitability with pre-tax earnings soaring over twofold year over year during the first seven months of this year.
In July 2024, Taiwan’s non-life segment recorded an 11.4 per cent year-over-year increase in direct premiums written, a continuation of the strong double-digit growth in 2023, with AM Best anticipates that this momentum will remain strong in the short to intermediate term.
AM Best in a statement said offsetting positive factors in the outlook revision to stable include low net investment yields compared with other markets in the region, and the high exposure in Taiwan to natural catastrophes.
Despite higher reinsurance rates, Taiwanese non-life insurers continue to exercise caution in structuring their reinsurance programmes.
AM Best will participate at the upcoming East Asian Insurance Congress’ (EAIC) Hong Kong Conference, taking place Sept 24 to 27, at the Hong Kong Convention and Exhibition Center, and will host a reception to celebrate the 25th anniversary of the launch of its Asia-Pacific operations.
-- BERNAMA
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