Central Reinsurance Company announced its earnings for the second quarter and first half of 2024, indicating a strong financial performance.

In the second quarter, the company reported revenue of NT$5,881.26 million, up from NT$5,527.48 million in the same period last year. Net income for the quarter was NT$801.67 million, compared to NT$527.4 million a year earlier.

Basic and diluted earnings per share from continuing operations were NT$1, up from NT$0.66 a year earlier.

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In the first six months of 2024, Central Re’s total revenue was NT$12,259.02 million, up from NT$10,967.52 million in the same period of 2023. Net income in the six months was NT$1,872.17 million, up from NT$1,179.38 million a year earlier.

Basic and diluted net earnings per share from continuing operations were NT$2.34, compared to NT$1.47 in the previous year.

In 2023, Central Re reported a net profit of NT$2.1 billion, with a five-year return on equity of 7% (2019-2023), based on adjusted capital and surplus. The company’s domestic non-life business saw growth in 2023, recovering from pandemic-related losses in the previous year. The domestic life insurance business continued to post strong profits.

The company’s overseas business posted modest profits, although underwriting performance was affected by some catastrophic losses. Investment results were supported by stable income from fixed income assets and dividends, although exchange rate fluctuations introduced some volatility.

AM Best Ratings for Central Re

Earlier this month, AM Best affirmed Central Re Insurance Corporation’s financial strength rating of A (Excellent) and long-term issuer credit rating of “a” (Excellent). The outlooks on these ratings remain stable.

The rating affirmation reflects Central Re’s strong balance sheet, adequate operating performance, positive business profile and appropriate enterprise risk management, according to AM Best’s assessment.

By the end of 2023, Central Re’s risk-adjusted capital value, measured by Best’s capital adequacy ratio (BCAR), remained at its strongest level. The company’s adjusted capital and surplus grew by 10% to NT$21 billion, driven by organic accretion of operating profit.

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