Shin Kong Financial Holding Co said higher payouts would be possible after Shin Kong Life Insurance adopts new accounting rules in 2026
By Kao Shih-ching / Staff Reporter
Shareholders of Shin Kong Financial Holding Co (新光金控) on Friday approved a proposal to distribute a cash dividend of NT$0.4 per share, but some shareholders suggested the company offer a higher payout to increase its share price, which was around NT$8. during the last trading sessions.
Shin Kong Financial acting chairman Lee Tseng-chang (李增昌) said that in recent years the company had to set aside more of its profits because Shin Kong Life Insurance Co (新光人壽) would need more capital after adopting International Financial Reporting Standards 17 (IFRS 17) in 2026.
The company could likely pay higher cash dividends after the life insurance arm adapts to stricter accounting rules, Lee said at the company’s annual general meeting in Taipei.
Photo courtesy of Shin Kong Financial Holding Co
Shin Kong Life Insurance would also bring in more revenue after 2026, he added.
This year, Shin Kong Life Insurance recorded loan losses of NT$3.16 billion ($107.67 million) due to its exposure to Russian bonds – larger than that of other Taiwanese life insurers – although that its obligations have not been defaulted.
The insurer has received interest income in US dollars on three occasions and expects to receive another payment in US dollars next month, Shin Kong Financial said.
Responding to shareholder concerns that a merger with Taishin Financial Holding Co (台新金控) would be difficult because the companies are very different, Shin Kong Financial’s independent director Shiu Yung-ming (許永明) said the merger would be a way to expand the business quickly.
The company should consider all possible mergers and acquisitions for the expansion of its business, he added.
The board has agreed to conduct feasibility studies on potential mergers with other financial holding companies, Shiu said.
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