Nan Shan Life's Colombia exposure tops NT$62.9 billion: FSC

Taipei, Jan. 7 (CNA) Nan Shan Life Insurance Co.'s exposure to Colombia reached NT$62.91 billion (US$2 billion), Financial Supervisory Commission (FSC) Chairman Peng Jin-long (彭金隆) said Wednesday, as geopolitical tensions in Latin America drew legislative scrutiny.

Peng made the remarks at a meeting of the Legislative Yuan's Finance Committee after U.S. President Donald Trump threatened possible military action against Colombia following the United States' capture of Venezuelan President Nicolás Maduro during a military operation in Caracas.

Nan Shan Life's exposure to Venezuela stood at NT$13.55 billion, Peng said, adding that the FSC had immediately reviewed the matter.

He explained that the insurer's Venezuela-related investments were mainly in AA-rated bonds issued by international development banks.

During the meeting, Democratic Progressive Party (DPP) lawmaker Kuo Kuo-wen (郭國文) said that life insurers had been reluctant to invest domestically, not only due to limited investment options but also because higher-risk overseas investments offer higher guaranteed returns.

This has led to excessive hedging and rising costs, Kuo said.

According to data presented by Kuo, as of November 2025, Taiwan's banking sector had total exposure of NT$14.51 billion to Venezuela, with one institution accounting for NT$13.55 billion.

Total bank exposure to Colombia was NT$816 million, with the largest single exposure at NT$392 million.

In contrast, Taiwan's insurance sector had no exposure to Venezuela, while its total exposure to Colombia reached NT$138.51 billion, with one insurer alone accounting for NT$62.91 billion.

Kuo then asked whether the insurer with NT$62.91 billion in exposure was Nan Shan Life, to which Peng replied in the affirmative.

Kuo noted that under the Financial Holding Company Act, firms must disclose their exposure amounts.

He added that major financial groups such as Fubon Financial Holding Co., Cathay Financial Holding Co. and CTBC Financial Holding Co. each reported exposure of between NT$16.3 billion and NT$18.7 billion, none of which matched the largest figure.

When asked whether the FSC would require insurers to gradually reduce such exposure, Peng said the issue should be addressed through systemic reforms rather than on a case-by-case basis.

The FSC will review rules governing non-investment-grade assets, including investment proportions and limits, from both risk and return perspectives, he said.