International insurance group Fortis has updated its net operating results guidance, now expecting profits in 2025 to be significantly higher than originally forecast due to tax changes in China.
The updated guidance range is now set at €1.6 to €1.65 billion, a significant increase from the previous forecast of €1.3 to €1.35 billion.
The revision follows a pre-announcement from China Taiping Insurance Holdings Co., Ltd. (CTIH) on new corporate income tax regulations.
These regulations issued by the Ministry of Finance and the State Administration of Taxation of China clarify the corporate income tax treatment for the transition to IFRS17/9 accounting standards.
The policy change will have a “one-time positive impact on the deferred tax included in the full-year 2025 results of Fortis’ China joint venture Taiping Life,” the insurer said.
