Taiwan Life Insurance's Losses Draw Attention; Ling Chung-yuan: Product Optimization to Improve Investment Performance

(Central News Agency, Lu Yan-ci, Taipei, June 10) Taiwan Financial Holdings has stable profits, but its subsidiary, Taiwan Life Insurance, frequently reports losses, drawing the attention of legislators. Ling Chung-yuan, Chairman of Taiwan Financial Holdings, said today that Taiwan Life Insurance bears historical burdens and has faced severe market fluctuations in recent years. She expressed a desire to promote product optimization, improve financial investment performance, internal system enhancements, and risk control.

The Finance Committee of the Legislative Yuan reviewed budget proposals today for the Central Bank, the Export-Import Bank of the Republic of China under the Ministry of Finance, and Taiwan Financial Holding Co., Ltd., and held question-and-answer sessions.

During questioning, Democratic Progressive Party legislators Lin Dai-hua and Wu Bing-rui focused on the operational efficiency of Taiwan Life Insurance under Taiwan Financial Holdings. Lin Dai-hua pointed out that since its spin-off establishment in 2008, Taiwan Life Insurance had an initial capital of only NT$5 billion. However, by 2026, it plans to conduct its 10th capital increase, with cumulative government capital injections totaling NT$73.5 billion over 18 years.

Lin Dai-hua argued that Taiwan Life Insurance's operational performance is unstable. Its capital adequacy ratio fell from 355.56% at the end of 2024 to 182.92% in October 2025. Additionally, surrender amounts have increased over the past five years, and between 2024 and October 2025, the company violated the Insurance Act three times. Its foreign investments plus international bond holdings exceeded the approved limit of 145%.

Ling Chung-yuan explained that Taiwan Life Insurance was saddled with historical burdens like military personnel insurance upon its establishment, holding many long-term, high-guaranteed-interest-rate policies. Compounded by severe market fluctuations in recent years, the company has faced challenges. However, she stated that Taiwan Life Insurance has been working very hard, and with full support from the holding company, its operational results are acceptable.

Ling Chung-yuan stated that the reason for Taiwan Life Insurance's capital increases is that the Financial Supervisory Commission requires life insurance companies to meet statutory capital adequacy ratio standards to conduct new types of business. If they fail to meet the standard, they cannot launch new products. The first seven capital increases were due to capital inadequacy from taking over high-guaranteed-interest-rate policies from the Central Trust of China, requiring capital increases to meet legal requirements. The most recent two increases were to align with the International Financial Reporting Standard 17 (IFRS 17) and the new solvency system (TIS).

She mentioned that Taiwan Life Insurance is not the only one with an urgent need for capital increases. Other large, early-established life insurance companies face even more severe problems. Because the FSC requires capital adequacy ratios to be met, the total capital increase amount across the market has reached approximately NT$500 billion. Taiwan Life Insurance's capital increase amount is relatively small in comparison.

However, Wu Bing-rui pointed out that compared to other established insurance companies that generate high profits annually, Taiwan Life Insurance has been losing money for years. He questioned whether the company should consider a 'decisive action' and think about what to do in the next 20 to 30 years. Ling Chung-yuan explained that over the past two years, through product optimization, the company has launched competitive products in the market, generating premium income. The next step is to improve financial investment returns to cover the past high negative spread.

Ling Chung-yuan emphasized that the results of recent efforts are visible. Taiwan Life Insurance was profitable in 2024. Last year, US tariff policies affected exchange rates, causing hedging costs to erode profits. However, there has been significant improvement so far this year. Besides product optimization and improving financial investment performance, the company will also enhance internal efficiency through system improvements and focus on risk control.

Chang Chih-hung, Chairman of Taiwan Life Insurance, added that new contract premium income last year was NT$12.1 billion, the first time it exceeded NT$10 billion in six years. As of early June this year, it reached NT$5.5 billion. He believes that with this 'new money' combined with disciplined investment, the rate of return can steadily increase. He emphasized that the burden of negative spread must be resolved over time. After a decade of structural adjustment, a positive cycle will gradually emerge. (Editor: Pan Yi-jing) June 10, 2026