By Kao Shih-ching / Employees reporter
Main life insurance coverage corporations have lowered the declared rates of interest for his or her New Taiwan dollar-denominated insurance policies to 2 % and US greenback insurance policies to three % on expectations of lowered returns on funding in a low-interest price setting.
Life insurers announce every month the declared rates of interest, that are used to calculate the scale of policyholders’ distributions.
Fubon Life Insurance coverage Co (富邦人壽), the nation’s second-largest life insurer with a market share of 17.2 %, mentioned it has slashed the charges for its 101 NT dollar-denominated merchandise by 25 foundation factors — the identical because the central financial institution’s March 19 price cuts — to between 1.05 and a couple of.25 %.
It minimize the charges for its US greenback insurance policies by 40 foundation factors to a spread from 2.7 to three %, Fubon mentioned.
Nan Shan Life Insurance coverage Co (南山人壽), the third-largest insurer with a market share of 13.39 %, minimize its charges by 25 foundation factors for its 90 NT greenback merchandise to between 1.9 and a couple of.05 %, in addition to 50 foundation factors for its 70 US greenback merchandise to between 2.85 and three %, it mentioned in an announcement.
Shin Kong Life Insurance coverage Co (新光人壽), the fourth-largest insurer with a market share of 9.18 %, lowered charges by a spread of eight foundation factors to 45 foundation factors for its NT greenback merchandise and a spread from 5 foundation factors to 45 foundation factors for its US greenback insurance policies.
Because of this, the utmost declared rates of interest for the corporate’s NT greenback and US greenback insurance policies had been 2.05 % and three.1 % respectively.
Nonetheless, Cathay Life Insurance coverage Co (國泰人壽), the nation’s largest life insurer with a market share of 19.45 %, solely minimize charges by 5 foundation factors for its 54 US greenback merchandise to a spread of between 2.25 and three.four %, and lowered between 6 and 15 foundation factors charges for its NT greenback merchandise to between 0.52 and a couple of %.
“We slashed the charges lower than our friends within the hope of producing good curiosity revenue,” Cathay Life govt vp Lin Chao-ting (林昭廷) mentioned by phone, including that the corporate remains to be assured that its declared rate of interest could possibly be greater than three % for this month.
“The revision in declared rates of interest doesn’t at all times correspond with the change within the benchmark charges, as they’re based on corporations’ funding efficiency,” Lin mentioned.
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