...Life Insurers Pressure Moderates: Fitch Ratings kept the negative outlook on Taiwan's life insurance sector as we believe the negative interest spreads arising from the high guaranteed rates of legacy policies and still low interest rates will constrain insurers' profitability, at least in the near term. However, Fitch expects earnings pressure to abate amid rising interest rates and continuing reduction in cost of insurance liabilities. Non-Life Insurers Remain Solid: The stable outlook for Taiwan's non-life insurance sector is supported by a strong industry-wide capital buffer and satisfactory underwriting performance. Rising rates will benefit their investment yields, and further underpin bottom-line profitability. Negative Spreads Ease: Fitch expects life insurers' negative spreads pressure to ease due to declines in the costs of insurance liabilities and improvements in recurring investment yields resulting from rising market interest rates. The cost of insurance liabilities has been...
