According to data released by the Financial Supervisory Commission (FSC), life insurers in Taiwan have decreased their exposure to mainland China to a record low as a result of the COVID-19 pandemic, the uncertain economy, and a falling housing market.
According to The Taipei Times, citing the FSC, life insurance companies reduced their investment in China last quarter for the sixth consecutive quarter, with their total investment falling to NT$148.5 billion ($4.8 billion) at the end of September, the lowest in the previous 25 quarters.
According to the commission, Taiwanese insurers are now being more cautious about making investments in China as a result of China's hostilities with the US, strict COVID-19 controls, and struggling real estate market.
The data show that Cathay Life Insurance outperformed its competitors despite the fact that its investment in China had decreased for six consecutive quarters to about NT$32 billion as of 30 September 2022. The Top Five list also includes Taiwan Life Insurance, Fubon Life Insurance, China Life Insurance, and Nan Shan Life Insurance.
According to the data, Taiwanese banks' exposure to mainland China as of 30 September represented 29% of their total net worth of NT$4.11 trillion, down from 36% a year earlier. At the end of September, the local banks' total exposure from loans, investments, and deposits decreased by about 1% to NT$1.18 trillion, the lowest amount in nine years, according to the commission.
