Fubon Life Insurance (FUBON)

Fubon Life’s current credit profile is that of a strong insurer supported by a top-tier Taiwanese life insurance franchise, Fubon FHC’s distribution platform, A-category ratings, legacy RBC of 434% and a substantial FX reserve. This is not a stage where near-term issuer credit stress is the central focus. Monthly self-reported results through April 2026 also do not show clear deterioration. However, IFRS 17 has only recently been introduced, adjusted profit includes FVOCI equity disposal gains and losses, and actual TIS, CSM roll-forward, distributable earnings and the sustainability of recurring yield remain pending for disclosure from the half-year period onward. The credit direction should be viewed as stable at present, and any improvement call should wait until TIS, CSM and post-hedging earnings are confirmed.

The supports are industry-leading 2025 net income, top-tier premium scale, more than 18,000 agents, bancassurance with Taipei Fubon Bank, a 72.6% proprietary-channel ratio, high persistency and the Fubon FHC group’s customer base. On capital, end-2025 equity attributable to owners of the parent of NT$630.4bn, FX reserve of NT$142.1bn and legacy RBC of 434% are important. The CSM balance of NT$403.2bn as of 1 January 2026 is a source of future profit, but not immediately loss-absorbing capital.

The main constraint is the combination of foreign-currency investments and long-duration insurance liabilities. The 2025 foreign exchange loss of NT$80.2bn and negative NT$112.6bn change in FX valuation reserve showed that FX, hedging and regulatory reserves can materially move earnings. Fitch also identifies the fact that US dollar assets substantially exceed US dollar liabilities as a central constraint. The expansion of foreign-currency policy sales and the increase in FX reserves are improvements, but they do not make the existing asset-liability structure harmless in the short term.