Operating Report
In the first half of 2024, the global economic growth momentum was continuously constrained by uncertain factors such as inflation, the lag effect of high interest rates, geopolitical interference and the US-China technological dispute. However, as demand gradually recovered, the activities of global commodity trade grew steadily, and data such as Taiwan's export orders, exports and industrial production resumed growth momentum. In the second half of 2024, global inflation gradually slowed down and monetary policy became more relaxed, which helped to improve global economic and trade momentum. Domestically, due to the steady growth of the global economy and the demand for emerging technology applications such as high-performance computing and artificial intelligence, along with the traditional export peak season, the export value has been growing for 13 consecutive months by November. In terms of private consumption, the retail and catering industries continued to grow steadily due to the influence of the lively domestic leisure and entertainment and sports events. According to the Directorate General of Budget, Accounting and Statistics, Executive Yuan, Taiwan's economic growth rate for 2024 was estimated as 4.30%, up 2.99% from 1.31% in 2023.
Industry-wise, the non-life insurance industry posted total written premiums of NT$270.2 billion in 2023, up 10.87% from the NT$243.7 billion in 2023. The Company managed to generate NT$8.941 billion of written premiums in 2024, which represented a 3.54% growth over the NT$8.635 billion in 2023. Below is a breakdown of the Company's 2024 business performance:
1. Business aspect
Fire insurance:
Premium revenues amounted to NT$1,528,297 thousand and accounted for 17.09% of total premium revenues, representing a 10.81% growth over the NT$1,379,216 thousand recorded in 2023. Retained loss ratio was calculated at 86.49%.
Marine insurance:
Premium revenues amounted to NT$461,296 thousand and accounted for 5.16% of total premium revenues, representing a 4.18% growth over the NT$442,771 thousand recorded in 2023. Retained loss ratio was calculated at 25.33%.
Auto insurance:
Premium revenues amounted to NT$5,590,265 thousand and accounted for 62.52% of total premium revenues, representing a 3.56% decline over the NT$5,796,633 thousand recorded in 2023. Retained loss ratio was calculated at 56.58%.
Other insurance:
Premium revenues amounted to NT$1,361,471 thousand and accounted for 15.23% of total premium revenues, representing a 33.92% growth over the NT$1,016,642 thousand recorded in 2023. Retained loss ratio was calculated at 40.08%.
2. Financial aspect
As of the end of 2024, the amount of total assets was NT$19.707 billion, an increase of NT$458 million from NT$19.249 billion at the end of 2023, mainly due to the increase in cash and bank deposits; the amount of total liabilities was NT$11.010 billion, a decrease of NT$111 million from NT$11.121 billion at the end of 2023, mainly due to the decrease in insurance liabilities.
Looking ahead to Taiwan's economy in 2025, on the international front, the US-China technological dispute and geopolitical tensions are still ongoing. In addition, with the US presidential election over, policy volatility is increasing, which may add uncertainty to the global economic outlook. International forecasting agencies estimate that the global economic growth rate will be between 2.7% and 3.3%. Domestically, benefiting from the continued expansion of business opportunities in artificial intelligence, high-performance computing and cloud industries, the demand for supply chains such as high-end semiconductor processes and servers continues, driving Taiwan's export orders and manufacturing production index. However, the US tariff policy may also increase the uncertainty of export performance. Leading organizations forecast that Taiwan's economic growth rate would range from 3.10% to 3.29% 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.
Finally, we wish you all good health and all the best.