FIVE-YEAR LOW: Wellington Koo said that the FSC would review insurers’ ability to combat risks after the insurance, securities and futures sector saw its profits plunge

Taipei Times
Date: Jan 25, 2019
By: Kao Shih-ching  /  Staff reporter

Local banks saw their pretax profits hit a record last year, buoyed by stable fee income and interest income growth, but local insurers suffered huge hedging losses and saw their pretax profits drop to the lowest point in five years, data released by the Financial Supervisory Commission (FSC) showed yesterday.

Financial sector firms saw their combined pretax profits decline 2.89 percent annually to NT$523.3 billion (US$16.94 billion) last year, as the banking sector’s increased profits were offset by losses in the insurance, securities and futures sector, the data showed.

“We will conduct a comprehensive review of insurers’ ability to fight risks, demanding that they control the risks wisely,” FSC Chairman Wellington Koo told a news conference in New Taipei City.

Last year’s financial performance was stable, given that companies listed on the Taiwan Stock Exchange reported growing revenue and an increased average daily turnover of NT$163.5 billion, Koo said.    [FULL  STORY]