Cathay Financial Holding Co. (2882-TW) held an investors conference today on May 20th. Due to the impact of the stock market crash in 4Q18, its subsidiary Cathay Life Insurance’s FY19 EV decreased by nearly 5% YoY. However, catalyzed by the capital market return, Cathay Financial Holding Co.’s 1Q19 net book value rebounded by NTD131.8bn. The Cathay Life Insurance’s net book value increased by NTD120bn.
Due to a higher comparison base in 1Q18, Cathay Financial Holding Co.'s 1Q19 net profit decreased by 42% YoY to NTD13.6bn with EPS of NTD1.05. Cathay Life Insurance's 1Q19 net profit fell sharply YoY and decreased from NTD16.7bn to NTD6.4bn.
However, Cathay Financial vice president Teng Chung-yi told that the company will continue to strengthen the value-oriented strategy. The company’s FYP of protection products grew by about 70% and its FYPE ranked first in the industry. Moreover, the cost of debts continued to improve and drop to 4.02%.