Taiwan Insurers Face Billions in Value Declines in Overhaul

Taiwan’s largest life insurers are braced for a multi-billion dollar erosion in book value as the industry transitions to a more rigorous accounting framework.

Cathay Life Insurance Co., the island’s biggest insurance firm, said Wednesday that its net asset value — defined as assets minus liabilities — will decline by NT$245 billion ($7.7 billion) after adopting the new accounting standards. Nan Shan Life Insurance Co.’s net asset value will fall by NT$63 billion under the new framework, according to a company announcement last week.