Operating Report
In 1H of 2023, as the global economy continued to be sluggish and the end demand was still weak, manufacturers were generally adjusting their inventories. The unfavorable factors for economic growth, such as global inflation, tight monetary policy, and ongoing Russia-Ukraine war, posed considerable pressure on export sales in 1H of the year. In 2H of 2023, although global inflation was slowing and interest rate hikes around the world ending, the end consumption momentum was recovering slowly, due to the deferred interest rate hike effect. Domestically, the sales of products other than information communication and audiovisual products was limited by the global economic growth. However, Taiwan's economic growth in Q4 of 2019 hit the record in the past two years, thanks to the recovery of exports driven by the obvious business opportunities of emerging applications, such as AI, the increase in chips contained in end products, and the gradual recovery of inventory in the supply chain to normal levels, apparently better than market expectations. According to the Directorate General of Budget, Accounting and Statistics, Executive Yuan, Taiwan's economic growth rate for 2023 was estimated as 1.40%, down 1.19% from 2.59% in 2022.
Industry-wise, the non-life insurance industry posted total written premiums of NT$243.7 billion in 2023, up 10.62% from the NT$220.3 billion in 2022. The Company managed to generate NT$8.635 billion of written premiums in 2023, which represented a 9.24% growth over the NT$7.905 billion in 2022. Below is a breakdown of the Company's 2023 business performance:
1. Business aspect
Fire insurance:
Premium revenues amounted to NT$1,379,216 thousand and accounted for 15.97% of total premium revenues, representing a 24.69% growth over the NT$1,106,142 thousand recorded in 2022. Retained loss ratio was calculated at 44.57%.
Marine insurance:
Premium revenues amounted to NT$442,771 thousand and accounted for 5.13% of total premium revenues, representing a 6.51% growth over the NT$415,702 thousand recorded in 2022. Retained loss ratio was calculated at 39.15%.
Auto insurance:
Premium revenues amounted to NT$5,796,633 thousand and accounted for 67.13% of total premium revenues, representing a 6.88% growth over the NT$5,423,478 thousand recorded in 2022. Retained loss ratio was calculated at 60.56%.
Other insurance:
Premium revenues amounted to NT$1,016,642 thousand and accounted for 11.77% of total premium revenues, representing a 5.94% growth over the NT$959,628 thousand recorded in 2022. Retained loss ratio was calculated at 45.60%.
2. Financial aspect
Total assets amounted to NT$19.249 billion by the end of 2023, which was NT$1.595 billion higher than the NT$17.654 billion reported at the end of 2022 and was mainly due to the increase of reinsurance contract assets and financial assets. Total liabilities amounted to NT$11.121 billion, which was NT$1.03 billion more than the NT$10.091 billion reported at the end of 2022 and was due mainly to the increase in insurance liabilities.
Looking forward to 2024, for Taiwan’s economic outlook, on the international front, although global inflation is slowing and tight monetary policy around the world gradually ending, the interest rate hike effect continues to disrupt consumption and investment, plus negative factors, such as competition between the US and China, extreme weather, and geopolitical turmoil, causing multiple uncertainties in economy. International forecast institutions have forecast the global economic growth rate to range from 2.3% to 2.9%. Domestically, the economy has gradually recovered from the bottom, and private consumption remained booming. As the applications of emerging technologies, such as high-performance computing, AI and automotive electronics, continue to expand, and Taiwan's semiconductor industry has a competitive advantage, it is helpful to maintain the momentum for ordering. In terms of the growing model, the economy is considered recovering at home and abroad. Leading organizations forecast that Taiwan's economic growth rate would range from 2.3% to 3.70% this year, which appears to be stable. In response, the Company shall continue focusing on its core business activities while at the same time explore improvements with a focus on stability, pragmatism, and innovation. In terms of asset allocation, the Company will strive to raise capital efficiency and asset yields as a show of gratitude for the support of our shareholders.
Lastly, we would like to give you our best regards for the future ahead.