Taiwan Insurers Slash Currency Hedges to Record as Reserves Rise
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Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the worldAmericas+1 212 318 2000EMEA+44 20 7330 7500Asia Pacific+65 6212 1000Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the worldAmericas+1 212 318 2000EMEA+44 20 7330 7500Asia Pacific+65 6212 1000Taiwan’s life insurers have cut their currency hedging to a record low, while boosting their buffer against foreign-exchange risks to give themselves a greater capacity to ride out any potential volatility.Derivatives such as forwards and currency swaps covered 52.3% of life insurers’ overseas assets as of Sept. 30, based on the latest data from the six largest firms. That’s down from 55.8% on June 30, and the lowest since the comparable data became available in 2013. The analysis strips out foreign-currency denominated insurance policies that don’t need hedging.