The China Post
Date: April 5, 2015
TAIPEI–Taiwan’s life insurance companies are likely to face higher risks than Taiwanese banks, as life insurers here generally hold larger amounts of assets denominated in foreign currencies, according to a Taiwan Ratings Corp. report.
In the report titled “Taiwan’s Life Insurers Face Higher Foreign Exchange Risks than Banks,” Taiwan Ratings said that as interest rates in Taiwan remain low and the local financial sector’s profits have stayed stagnant, many banks and life insurers have been looking for assets overseas.
Eyeing higher earnings from the foreign markets, Taiwanese financial institutions, in particular life insurers, have led the way to raise their foreign currency positions under unfavorable conditions in the local market, Taiwan Ratings said. [FULL STORY]