Sector Review: Taiwan Life Insurers' Low Earnings Growth Hinders Capital Restoration Mar 12

Standard & Poors, March 2012

Abstract
Intense competition, volatile equity markets, and prevailing low interest rates could constrain earnings growth for Taiwan's life insurers in 2012. A potential slowdown in the island's economic recovery is also likely to curb insurers' ability to raise premiums and turn around after two years of subdued performance. Taiwan Ratings Corp. expects the life insurance sector's earnings prospects to remain modest in 2012. Insurers will also face a few obstacles as they try to strengthen their capital bases and credit profiles to prepare for future volatility. Despite the pressures on insurers' earnings in the coming year, we don't expect the credit profiles of our rated insurers to weaken significantly, even considering the sector's high capital sensitivity to investment market performance. We...

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- Chiao Tung Bank
- Bank of Taiwan
- Chinatrust Commercial Bank
- First Commercial Bank Ltd.
- Mega International Commercial Bank Co. Ltd.
- Cathay United Bank Co. Ltd.
- Taiwan Cooperative Bank Ltd.
- Hua Nan Commercial Bank Ltd.
- China Development Industrial Bank
- Farmers Bank of China
- Capital Securities Co. Ltd.
- Grand Cathay Securities Corp.
- Jih Sun Securities Co. Ltd.
- Masterlink Securities Corp.
- SinoPac Securities Corp.
- Central Trust of China
- Taipei Fubon Commercial Bank Co. Ltd.
- The Shanghai Commercial & Savings Bank Ltd.
- Yuanta Core Pacific Securities Co. Ltd.
- E.SUN Commercial Bank Ltd.
- Fubon Securities Co. Ltd.
- Yuanta Commercial Bank
- Asia Trust & Investment Corp.
- Bank of Kaohsiung
- KGI Securities Co. Ltd.
- China United Trust & Investment Corp.
- Chinfon Commercial Bank
- Cosmos Bank
- International Bank of Taipei
- Polaris Securities Co. Ltd.
- President Securities Corp.
- Chinese Bank (The)
- Union Bank of Taiwan
- Land Bank of Taiwan
- Oriental Securities Corp.
- Hua Nan Securities Co. Ltd.
- Pacific Securities Co. Ltd.
- Taitung Business Bank
- Bank SinoPac
- Fubon Financial Holding Co. Ltd.
- EnTie Commercial Bank
- Standard Chartered Bank (Taiwan) Ltd.
- Industrial Bank of Taiwan
- Taiwan Shin Kong Commercial Bank Co. Ltd.
- Sunny Bank
- Ta Chong Bank Ltd.
- Taiwan Business Bank
- Taiwan International Securities Co. Ltd.
- Mega Securities Co. Ltd.
- China Development Financial Holding Corp.
- Hwatai Bank
- Bank of Panhsin
- Cota Commercial Bank
- King's Town Bank
- Enterprise Bank of Hualien
- Yuanta Securities Co. Ltd.
- Chinatrust Financial Holding Co.
- SinoPac Holdings
- Ta Chong Securities Co. Ltd.
- Taichung Commercial Bank
- Jih Sun International Bank
- Hua Nan Financial Holding Co. Ltd.
- Mega Financial Holding Co. Ltd.
- Citibank Securities (Taiwan) Ltd.
- First Financial Holding Co. Ltd.
- First Securities Inc.
- Cathay Securities Corp.
- Jih Sun Financial Holding Co. Ltd.
- Yuanta Financial Holdings Co. Ltd.
- Bowa Commercial Bank Ltd.
- Agricultural Bank of Taiwan
- Morgan Stanley Taiwan Ltd.
- Citigroup Global Markets Taiwan Securities
- Dah Chang Securities Co. Ltd.
- Taishin Financial Holding Co. Ltd.

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