INSURING PROFIT:Forecasts for the insurance business next year show weak short-term growth, while the firm is to incur costs shifting its product focus to regular-paid policies
Date: Aug 31, 2015
By: Ted Chen / Staff reporter
CIMB Securities Ltd has advised investors to put a hold on Shin Kong Financial Holding Co (新光金控) shares amid concerns over the company’s looming uncertainty and mediocre expectations on earnings through 2017.
“Uncertainties include potential new business strain, higher hedging costs, tapering credit cycle and stagnating net interest margin,” Taipei-based CIMB Securities analyst Nora Hou (侯乃鳳) said on Thursday.
Despite strong 848 percent year-on-year growth in the first half of the year, Shin Kong Life Insurance Co (新光人壽), the financial holding firm’s most profitable unit, has seen growth momentum in the first year premium begin to fade in the second quarter, Hou said. [FULL STORY]