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Chunghwa Post Life Insurance started selling Postal Simple Life Insurance in 1935, in the same year, Central Trust of China, the predecessor of BankTaiwan Life Insurance, established the Department of Insurance to host life insurance business, it has been lasting for almost seventy years up to now. The two main sources of revenue of the insurance industry are underwriting income and investment income, due to market competition and impact of low interest rates, investment income has become the main source of revenue for insurance companies, therefore, this study investigates the influence of the investment income and investment allocation under the supervision of Insurance Laws of Chunghwa Post Life Insurance and BankTaiwan Life Insurance. Independent samples t-test and regression analysis methods are used to analysis how the two insurance companies using different funds to investment from 2009 to 2013.
There are five items exist significant differences in the average rates of investment, they are deposit, government bonds and treasury bills, corporate bonds, real estate investment and secured loan. Among these, BankTaiwan Life Insurance has higher average rate of investment in deposit, corporate bonds and real estate investment. Chunghwa Post Life Insurance has higher average rate of investment in Government bonds and treasury bills as well as in secured loan. Regression analysis showed that deposit and stock have significant positive impact on yield of capital utilization. There is no significant difference on yield of capital utilization between Chunghwa Post Life Insurance and BankTaiwan Life Insurance.
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