Fubon Financial : Life Insurance Financial Statements(Consolidated) 2022 Q4

Stock Code 5865

FUBON LIFE INSURANCE CO., LTD. AND

SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS

With Independent Auditors' Report

For the Years Ended December 31, 2022 and 2021

ADDRESS: 14F NO. 108, Sec. 1, Tun Hua S. Road, Taipei, Taiwan

TELEPHONE : [phone]

The independent auditors' report and the accompanying consolidated financial statements are the English translation of the Chinese version prepared and used in the Republic of China. If there is any conflict between, or any difference in the interpretation of the English and Chinese language independent auditors' report and consolidated financial statements, the Chinese version shall prevail.

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	TABLE of CONTENTS
	Contents			Page
Cover Page			1
Table of Contents			2
Representation Letter			3
Independent Auditors' Report			4
Consolidated Balance Sheets			5
Consolidated Statements of Comprehensive Income			6
Consolidated Statements of Changes in Equity			7
Consolidated Statements of Cash Flows			8
Notes to the Consolidated Financial Statements
1.	Company History			9
2.	Approval Date and Procedures of the Consolidated Financial Statements			9
3.	New Atandards, Amendments and Interpretations Adopted	9	13
4.	Summary of Significant Accounting Policies	13	43
5.	Significant Accounting Assumptions and Judgments, and Major Sources of	44	45
	Estimation Uncertainty
6.	Explanation of Significant Accounts	46	160
7.	Related-Party Transactions	161	172
8.	Assets Pledged as Security	173
9.	Commitments and Contingencies	173	174
10.	Losses Due to Major Disasters	174
11.	Subsequent Events	174
12.	Other	175	177
13.	Other Disclosures
	(A) Information on Significant Transactions	177	179
	(B) Information on Investees	179	180
	(C) Information on Investment in Mainland China	180	183
14.	Segment Information	183	184

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Representation Letter

The entities that are required to be included in the combined financial statements of Fubon Life

Insurance Co., Ltd as of and for the year ended December 31, 2022, under the Criteria Governing the Preparation of Affiliation Reports, Consolidated Business Reports, and Consolidated Financial Statements of Affiliated Enterprises are the same as those included in the consolidated financial statements prepared in conformity with International Financial Reporting Standards No. 10, "Consolidated Financial Statements." endorsed by the Financial Supervisory Commission of the Republic of China. In addition, the information required to be disclosed in the combined financial statements is included in the consolidated financial statements.Consequently, Fubon Life Insurance Co., Ltd and its Subsidiaries do not prepare a separate set of combined financial statements.

Company Name: Fubon Life Insurance Co., Ltd.

Chairman of the Board: Tsai, Ming-Hsing

Date: March 13, 2023

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KPMG

110615	5 7 68 (	101	)	Tel	+ 886 2 8101 6666
68F., TAIPEI 101 TOWER, No. 7, Sec. 5,	Fax	+ 886 2 8101 6667
Xinyi Road, Taipei City 110615, Taiwan (R.O.C.)	Web	kpmg.com/tw

Independent Auditors' Report

To the Board of Directors of

Fubon Life Insurance Co., Ltd.

Opinion

We have audited the consolidated financial statements of Fubon Life Insurance Co., Ltd. and its subsidiaries ("the Group"), which comprise the consolidated balance sheets as of December 31, 2022 and 2021, the consolidated statements of comprehensive income, changes in equity and cash flows for the years ended, and notes to the consolidated financial statements, including a summary of significant accounting policies.

In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as of December 31, 2022 and 2021, its consolidated financial performance and its consolidated cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Insurance Enterprises and with the International Financial Reporting Standards (" IFRSs" ), International Accounting Standards (" IASs" ), interpretations developed by the International Financial Reporting Interpretations Committee (" IFRIC" ) or the former Standing Interpretations Committee (" SIC" ) endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China.

Basis for Opinion

We conducted our audits in accordance with the Regulations Governing Auditing and Attestation of Financial Statements by Certified Public Accountants and the Standards on Auditing of the Republic of China. Our responsibilities under those standards are further described in the Auditors' Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of the Group in accordance with the Norm of Professional Ethics for Certified Public Account of the Republic of China, and we have fulfilled our other ethical responsibilities in accordance with these requirement. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis of our opinion.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements of the current period. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

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KPMG, a Taiwan partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee.

1. The valuation of financial instruments
   Please refer to Note 4(G) for the related accounting policy regarding the valuation of financial instruments, Note 5 for accounting assumptions and estimation uncertainty of the valuation of financial instruments, Note 6(AD) for details on the information about fair value and fair value hierarchy.
   Risk and description of the key audit matter:
   Financial instruments that are held by the Group, some of them are valued through models. The valuation methods and important parameters require significant professional judgment. Therefore, the valuation of financial instruments has been identified as a key audit matter in our audit.
   Procedures performed:
2. • Tested internal control procedures applied by management for fair value measurement of financial instruments;
   • For financial assets with quoted prices in an active market, selected samples to test the appropriateness of quoted prices;
   • For financial assets without quoted prices in an active market and measured the fair value by valuation techniques, engaged our internal valuation specialists, selected samples to test valuation models and check the reasonableness of the valuation methodology and the underlying parameters in order to assess whether the valuation techniques were properly adopted in accordance with IFRS13 "Fair Value Measurement";
   • Assessed the presentation and disclosures of financial instruments were in accordance with IFRSs.
3. The valuation of investment property
   Please refer to Note 4(K) for the related accounting policy regarding the valuation of investment property, Note 5 for accounting assumptions and estimation uncertainty of the valuation of investment property, Note 6(G) for details on the information about the valuation of investment property.
   Risk and description of the key audit matter:
   According to Regulations Governing the Preparation of Financial Reports by Insurance Enterprises, the fair value of the investment properties that are held by the Group was measured by the external appraisers using valuation methods and market evidences in accordance with Regulations on Real Estate Appraisal. The selection of valuation methods requires significant professional judgment. Therefore, the valuation of investment property has been identified as a key audit matter in our audit.
   Procedures performed:
4. • Obtained an understanding of professional appraisal firms' procedures for measuring fair value of investment properties in order to assess whether the professional appraisal firms selected appropriate valuation methods and check whether the firms adopted reasonable key assumptions;

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