The commission attributed the increased losses to fluctuations in exchange rates and high hedging costs. Life insurers’ cumulative hedging losses advanced from NT$110 billion for the year to Oct. 31 to NT$148.2 billion as of Nov. 30, as many had to hedge their US dollar-denominated assets amid fluctuation in foreign exchange rates, the commission said. In the first 11 months, life insurers paid about NT$183.8 billion into hedging programs such as currency swap or non-delivery forwards, a two-party currency derivatives contract, the commission said. For the whole of this year, net foreign exchange losses are likely to be higher than last year’s losses of NT$232.3 billion, it said. Insurers’ combined net value surged 71 percent year-on-year to an all-time high of NT$1.91 trillion in the 11-month period on the back of the rising value of their local and foreign equity holdings, it said.
