Sharp Drop in Shin Kong Life’s Foreign Exchange Valuation Reserve After Merger Sparks Controversy; Peng Says FSC Approval Required for Reversals

Taishin Financial Holding and Shin Kong Financial Holding merged on July 24, 2025, to form Taishin Shin Kong Financial Holding. Taishin Life was subsequently merged into Shin Kong Life on January 1, 2026. The foreign exchange valuation reserve is a statutory buffer that helps life insurers absorb currency risk, and a sudden decline in the balance has implications for policyholders’ interests, capital strength and regulatory consistency.

Shin Kong Life’s foreign exchange valuation reserve stood at NT$99.6 billion at the end of 2025 but fell to NT$52.1 billion when its books opened on January 1, 2026, a decrease of NT$47.5 billion, or 47.7%. Including Taishin Life’s NT$3.9 billion, the balance was NT$56 billion. Financial Supervisory Commission Chairman Thomas Peng said on May 11 that both reserve allocations and reversals require FSC approval. The Insurance Bureau said on May 26 that it would ask external academics and experts to review the matter as quickly as possible.