TAIPEI (S&P Global Ratings) May 8, 2025--Recent appreciation in the New Taiwan Dollar (NT$) poses a headache for Taiwan life insurers that rely heavily on foreign-currency investments. Insurers now face a balancing act to manage their forex risk without escalating capital and earnings risk. This is according to a report we published today, titled "NT$ Appreciation Puts Spotlight On Taiwan Life Insurers' Forex Risk Management." "Life insurers have invested heavily in foreign-currency assets over the past few years due to a lack of long-dated NT$-denominated investments to match the long duration of insurers' liabilities," said S&P Global Ratings credit analyst Serene Hsieh. "However, sharp appreciation in the NT$ against the U.S. dollar in early May could undermine this important profit
