Taipei, Dec. 21 (CNA) Taiwan Ratings, a local partner of S&P Global Co., on Wednesday forecast that Taiwan's economy will slow in 2023, with gross domestic product (GDP) growth expected to fall to 1.5 percent from an anticipated 2.5 percent increase in 2022.
The recent plunge in local life insurers’ net worth does not suggest a downturn in their credit quality, but it highlights the sector’s sensitivity to market volatility and difficulties in capital management, Taiwan Ratings Corp (中華信評) said yesterday.
Life insurers’ net worth or shareholders’ equity tumbled to NT$1.26 trillion (US$42 billion) at the end of June, from NT$2.72 trillion six months earlier, data from the Financial Supervisory Commission last week showed.
“We do not believe the reduction in shareholder equity alone indicates credit deterioration,” Taiwan Ratings said, blaming the value erosion on falling bond prices amid interest rate hikes.
Local