First-year premium expansion ranged from 28% to 78% across three carriers.
Taiwan’s major life insurers returned to profitability in the first quarter of 2026 as they reported their first results under IFRS 17.
According to a research note by CreditSights covering Cathay Life, Fubon Life, Nan Shan Life and Shin Kong Life, all four insurers broadly posted net profits in the quarter, compared with net losses a year earlier.
It was also the first reporting period following Shin Kong Life’s merger with Taishin Life.
New business growth remained strong for most insurers. First-year premiums (FYP) increased between 28% and 78% year on year at Cathay Life, Fubon Life and Shin Kong Life, whilst Nan Shan Life recorded a 22% decline, although the report noted the company’s disclosures remained limited.
Cathay Life recorded the strongest premium growth but trailed its peers in contractual service margin (CSM), as much of its new business came from lower-margin investment-linked and interest-sensitive annuity products.
Under IFRS 17, both insurance service results and financial results contributed to earnings during the quarter.
Financial results accounted for the larger share of profits at all four insurers except Nan Shan Life.
The report said Nan Shan Life’s weaker underlying business performance may not necessarily be negative, as improved margins suggest it could be reducing lower-margin business.
The researchers also noted that Taiwanese life insurers significantly reduced their foreign exchange hedging positions following the introduction of a new foreign exchange accounting treatment and an FX volatility reserve mechanism.