The Taiwan dollar's surge has led to record-high hedging costs, with three-month costs jumping to 14% this week, and life insurers are taking different approaches to managing their US bond holdings.

Taiwan Life Insurance Co.'s losses more than doubled in May to NT$2.83 billion due to the local currency's rally against the US dollar, which pummeled its foreign investments.

Fitch estimates the insurers have sufficient capital buffers to withstand a 10% rise in the Taiwan dollar against the U.S. dollar from the start of 2025. Currently, the local currency is up about ...

Another flare-up in the Taiwan dollar’s strength is unwelcome news for the island’s exporters and life insurers. The New Taiwan dollar hit a three-year high against the greenback on Friday ...

The Best’s Commentary, “Taiwan Dollar Rallies, Life Insurers More Exposed to Foreign Exchange Risk,” notes that the local currency surged by a combined 8% against the U.S. dollar over a two ...

Setser stressed in his 2019 and early 2025 studies, Taiwan’s holdings of US dollar-denominated assets were the result of life insurers acting as “ the primary intermediator for Taiwan’s ...

In this case, Taiwan life insurers over the years have put their assets into U.S.-dollar-denominated bonds - which was and even is not a terrible strategy - but they have done so without hedging ...

An unprecedented two-day surge in Taiwan's currency is the latest leg of a scramble out of the U.S. dollar and signal of disquiet in markets as U.S. President Donald Trump's trade war rattles ...

SINGAPORE/TAIPEI (Reuters) -An unprecedented two-day surge in Taiwan's currency is the latest leg of a scramble out of the U.S. dollar and signal of disquiet in markets as U.S. President Donald ...