Chubb Life’s strong regulatory capital supports stability

Fitch expects it to continue prioritising regular-paid and protection-focused policies.

Chubb Life Insurance Taiwan Company (CLITC) is expected to maintain its sound financial performance, with an annualised return on equity of 13.2% in the first half of 2024 (H1 2024) (2023: 13.6%), according to Fitch Ratings.

Fitch anticipates the insurer will continue prioritising regular-paid and protection-focused policies, which support profitability under the IFRS 17 and TW-ICS frameworks. 

Despite this focus, significant changes to CLITC’s business mix, currently dominated by investment-linked products (66% as of H1 2024), are not expected in the near term.  

The insurer’s strong capitalisation remains a key driver of its stability. 
Fitch projects CLITC will sustain its regulatory risk-based capital ratio well above the 200% regulatory minimum, standing at 681% as of 1H24 (2023: 662%). 

CLITC's lack of financial debt and conservative investment strategy—90% allocated to fixed-income instruments—bolster its risk profile.  

However, challenges remain amidst its mid-sized operating scale, with a 1.9% in-force premium market share in 2023, and its need to strengthen its business presence amid market volatility and intense competition. 

The insurer is expected to expand its bancassurance and broker channels whilst maintaining its telemarketing leadership in accident and health insurance.  

Fitch’s outlook also factors in CLITC’s conservative investment approach, with no exposure to risky assets such as equities or below-investment-grade bonds, reducing vulnerability to market fluctuations.