Cathay Life and Shin Kong Life have been upping their exposure to emerging market bonds. They and Fubon Life have also generated strong returns from high-dividend stocks.
The Taiwanese insurer has welcomed the US rate hike, but is concerned about global uncertainty. It is buying more emerging-market bonds, with the exception of Chinese debt.
The Taiwanese insurer plans to overweight emerging-market government debt and foreign corporate bonds this quarter, amid heavy outflows from fixed income and EM assets globally.
The Taiwanese insurer will boost its overseas fixed-income allocation in developed markets, but is reducing its renminbi debt exposure and remains underweight equities.
China Life and Shin Kong Life become the first to receive regulatory approval to invest in mainland China outside of real estate. They must now await quotas, with China Life targeting what would be a record $500 million.