Cathay Life Insurance reduced exposure to stocks for NTD30bn in 2Q19

Cathay Financial Holding Co. (2882-TW) held an investors conference today on August 22nd. Since Cathay Life Insurance was underweight stocks for more than NTD30bn in 2Q19, its FY19’s cash dividend income may decrease YoY, causing concerns. The general manager Lee Chang-ken (李長庚) explained that the main reason for doing so is the concern of receiving dividends but unbaling to complete ex-dividend, so the company decided to realize the capital gains in advance.

Cathay Financial Holding Co."s 1H19 was NTD34.1bn (-5% YoY) with EPS of NTD2.45. Among them, Cathay Life Insurance’s 1H19 net profit was only NTD19.8bn (-21% YoY). The company explained that the capital market was in a good shape last year so Cathay Life Insurance’s investment return was higher in FY18. However, Cathay United Bank’s net profit increased by 14% to NTD12.8bn, remained stable.