Revenue and net income saw notable increases
Central Reinsurance Corporation reported its earnings for the second quarter and the first half of 2024, showing strong financial performance.
For the second quarter, the company reported revenue of TWD 5,881.26 million, up from TWD 5,527.48 million in the same period last year. Net income for the quarter was TWD 801.67 million, compared to TWD 527.4 million a year ago.
Basic and diluted earnings per share from continuing operations were TWD 1, up from TWD 0.66 in the prior year.
For the first six months of 2024, Central Re’s revenue totaled TWD 12,259.02 million, an increase from TWD 10,967.52 million in the same period in 2023. Net income for the six months was TWD 1,872.17 million, up from TWD 1,179.38 million a year earlier.
Both basic and diluted earnings per share from continuing operations were TWD 2.34, compared to TWD 1.47 in the previous year.
In 2023, Central Re reported a net profit of TWD 2.1 billion, with a five-year return on equity of 7% (2019–2023), based on adjusted capital and surplus. The company’s domestic non-life business saw growth in 2023, recovering from pandemic-related losses in the prior year. The domestic life business continued to generate solid earnings.
The company’s overseas business reported modest profits, though underwriting performance was affected by some catastrophe losses. Investment results were bolstered by stable income from fixed-income assets and dividends, though currency exchange rate fluctuations introduced some volatility.
AM Best ratings for Central Re
Earlier this month, AM Best affirmed the financial strength rating of A (Excellent) and the long-term issuer credit rating of “a” (Excellent) for Central Reinsurance Corporation. The outlook for these ratings remains stable.
The ratings affirmation reflects Central Re’s strong balance sheet, adequate operating performance, favorable business profile, and appropriate enterprise risk management, as assessed by AM Best.
By the end of 2023, Central Re’s risk-adjusted capitalization, measured by Best’s Capital Adequacy Ratio (BCAR), remained at the strongest level. The company’s adjusted capital and surplus grew by 10% to TWD 21 billion, driven by the organic accumulation of operating profits.
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