Central Reinsurance Corporation

High levels of competition and rate cutting across most classes of business and the market’s vulnerability to catastrophe events, particularly earthquakes, means that non-life business in Taiwan is a challenging proposition for foreign reinsurers

While 2007 was a year of decidedly mixed fortunes for most reinsurers, Taiwan’s Central Reinsurance Corporation (Central Re) increased its underwriting result by 150.0% and its investment income (including net realised investment gains) by 42.0%. The improvement in the group’s overall performance was more tangibly reflected in its net profit result which increased by 80.0% from a profit of NT$699.6mn in 2006 to a profit of NT$1.3bn in 2007. This must rank as one of the best improved performances, if not the best, by any reinsurer last year. And although this, in absolute terms, was the best result (by far) in the history of the company, the means by which it was achieved, particularly on the underwriting side, are explained in only the very broadest of terms in Central Re’s reports and accounts. This contrasts with the level of detail provided in the accounts of US, Bermudian and European reinsurers.