Taiwan’s largest financial conglomerate saw nine-month profit drop 27% year-over-year as a strengthening local currency erased gains from its life insurance business, even as its banking and property insurance units delivered record results.
Cathay Financial Holdings reported net income of NT$74.6 billion ($2.37 billion) for the first nine months of 2025, compared with NT$102.8 billion a year earlier. Earnings per share fell to NT$4.84 from NT$6.78 in the same period.
The sharp appreciation of the Taiwan dollar against the greenback—climbing roughly 8% in the second quarter alone—hammered Cathay Life’s returns on its substantial overseas investment portfolio. The life insurance subsidiary posted profit of NT$34.5 billion, nearly half the NT$67.1 billion earned during the same period last year, despite achieving double-digit growth in first-year premiums and value of new business.
Cathay United Bank provided a counterweight, delivering record nine-month earnings of NT$34.7 billion, an 11% increase driven by robust loan growth and a 25% jump in fee income. The bank’s wealth management fees surged 31% as clients increased allocations to mutual funds and bancassurance products.
The P&C insurance arm, Cathay Century, also achieved record results with profit climbing 28% to NT$2.8 billion on improved underwriting margins. The company’s asset management unit reached NT$2.33 trillion in assets under management.
Management cited core business momentum as solid across subsidiaries, though the results underscore how currency volatility continues to challenge Taiwanese insurers with large foreign asset exposures.
