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TREIF generated NT$2.84 billion in revenue in 2008, up 31.9% from NT$2.15 billion in 2007. Of this total, NT$2.48 billion or 87.34% was income from reinsurance premiums. Other revenue sources included interest income from bank deposits, government bonds, and financial bonds, contributing NT$0.16 billion, or 5.77% of the total; management fee income, amounting to NT$0.07 billion, or 2.61%; income from reserve adjustment and credit risk reserves, accounting for NT$0.09 billion, or 3.13%; and other income, totaling NT$0.03 billion, or 1.15%.
Loadings for the insurance account for 15%, of which 2% is allocated to TREIF as a reserve adjustment for handling risk transfer to the reinsurance market or capital markets. When the accumulated total for the current year exceeds the total amount of reinsurance expenses for risk transferred to the reinsurance market or capital markets in the previous year by 150%, the surplus portion shall be recovered. After deducting this amount, the remaining funds shall be retained in the reserve adjustment. In addition, 1% of the additional charges is allocated to TREIF for a credit risk reserve to cover losses from contract breach by a policy issuer, co-insurance pool member, reinsurer or reinsurance broker.
Strengthened efforts at education and promotion have paid off with greater public awareness of earthquake risk. This in turn has lifted the take-up rate for residential earthquake basic insurance and generated higher reinsurance premium income. Through growth and sound utilization of capital, TREIF has been able to steadily increase interest income. |
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