Fitch is considering downgrades for Taiwanese insurers as Taiwanese dollar surges

From Yahoo Finance: 2025-05-16 00:06:00

Credit ratings agency Fitch is reviewing five Taiwanese life insurers for potential downgrades due to a surge in the Taiwanese dollar, causing stress on their balance sheets. Insurers have hedged most mismatches, but unhedged positions leave them vulnerable to currency swings. Taiwan’s dollar rose 8% in two days, prompting concerns. Fitch estimates insurers can withstand a 10% increase in the Taiwan dollar. The reviews are expected to be resolved in the next three to six months.



Read more at Yahoo Finance: Fitch puts Taiwan life insurers on downgrade watch after currency surge