Fubon Insurance Co’s (富邦產險) board of directors on Tuesday approved a proposed capital increase to enhance the company’s risk-based capital ratio.
A capital injection of NT$15 billion (US$500.32 million) by the end of next month would help lift its risk-based capital ratio by 100 percentage points, the company said in a statement.
The ratio stood at 225.8 percent at the end of June, slightly above the regulatory minimum of 200 percent, it said.
Cathay Century Insurance Co (國泰世紀產險), CTBC Insurance Co (中國信託產險) and Tokio Marine Newa Insurance Co (新安東京海上產險) have already approved plans to boost their capital by NT$10 billion, NT$4 billion
Publicly traded companies raised NT$338.81 billion (US$11.33 billion) in funds in the first half of this year, down 27.76 percent from a year earlier, as higher interest rates raised the cost of corporate bond issuance and affected firms’ willingness to finance debt, the Financial Supervisory Commission said last week.
The 27.76 percent annual decline was the largest for the six-month period since 2016, when the figure dropped 41.3 percent.
Another factor was reduced bond sales from contract chipmaker Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the commission said.
However, the number of companies applying to raise funds increased 13.53 percent from a year earlier