Union Insurance Co., Ltd. (2816) AI Stock Analysis

Union Insurance Co., Ltd.

(TWSE:2816)

Select Model

Rating:67.5Neutral

Price Target:TWD 43.00▲(5.26% Upside)

Action:initiatedcoverage

Date:11/10/26

The overall score of 67.5 reflects a company with a fortress-like balance sheet and deeply discounted valuation, offset by weakening technical momentum and deteriorating income statement trends. The most significant positive factors are the exceptionally low P/E of 3.51 and a strong, debt-free financial foundation. The primary risks are the recent revenue decline and sharp gross margin compression, which are also reflected in the stock trading below key moving averages. The high dividend yield adds to the total return potential, but near-term earnings quality remains a key concern.

Positive Factors

Very Low LeverageA near-zero debt burden gives Union Insurance substantial financial flexibility and supports solvency through underwriting or investment volatility. Growing equity further strengthens its capital base, allowing the company to absorb losses and pursue business opportunities without relying heavily on external financing.

Negative Factors

Inconsistent Revenue GrowthRecent revenue performance does not show a consistently expanding top line, which can constrain operating leverage and make future earnings more dependent on margins or investment results. The 2025 decline also suggests that growth momentum across the insurance portfolio remains uneven.

Union Insurance Co., Ltd. (2816) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 9.34B
Dividend Yield: 3.67%
Average Volume (3M): 530.65K
Price to Earnings (P/E): 3.6
Beta (1Y): 0.34
Revenue Growth: 30.83%
EPS Growth: 244.54%
Country: TW
Employees: 1,109
Sector: General
Sector Strength: 55
Industry: Insurance - Diversified

Union Insurance Co., Ltd. Business Overview & Revenue Model

Company Description

Operating across Taiwan and Thailand, Union Insurance Co., Ltd. delivers a comprehensive portfolio of insurance solutions. Its offerings encompass a wide range of coverage: Fire Insurance: Extensive options for both residential and commercial propert...

Union Insurance Co., Ltd. Financial Statement Overview

Summary

Financial performance is mixed but stable. The balance sheet is exceptionally strong with negligible debt and a growing equity base (Score: 85). Cash flow rebounded powerfully in 2025 (Score: 70). However, the income statement shows top-line pressure and margin compression, with revenue declining 3.6% and gross margin falling to 50.7% (Score: 55). The overall picture is of a financially safe company facing near-term earnings quality concerns.

Income Statement

55Neutral

Balance Sheet

85Very Positive

Cash Flow

70Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	13.17B	10.45B	11.02B	10.18B	8.50B	8.81B
Gross Profit	8.90B	5.30B	8.95B	8.25B	6.72B	7.11B
EBITDA	2.96B	1.43B	1.56B	1.39B	-1.24B	879.42M
Net Income	2.57B	1.04B	1.22B	1.20B	-1.32B	696.67M
Balance Sheet
Total Assets	27.24B	20.11B	23.23B	19.93B	18.30B	19.02B
Cash, Cash Equivalents and Short-Term Investments	3.59B	6.14B	6.01B	5.83B	5.21B	5.73B
Total Debt	14.77M	20.45M	13.35M	17.93M	11.93M	18.26M
Total Liabilities	17.60B	12.06B	15.92B	13.83B	13.50B	12.58B
Stockholders Equity	9.64B	8.05B	7.31B	6.10B	4.80B	6.44B
Cash Flow
Free Cash Flow	402.40M	1.49B	-343.55M	659.93M	-330.36M	1.46B
Operating Cash Flow	441.85M	1.54B	-260.13M	716.19M	-255.37M	1.66B
Investing Cash Flow	-54.91M	-47.70M	-69.57M	-287.94M	-85.23M	-202.07M
Financing Cash Flow	-351.01M	-351.27M	-16.64M	-16.36M	-240.34M	-194.48M

Union Insurance Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:2816 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:2852	71Outperform	TWD 8.18B	8.77	―	5.79%	23.63%	45.19%
TW:2816	68Neutral	TWD 8.82B	3.55	―	3.67%	30.83%	244.54%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

* General Sector Average

Performance Comparison

TW:2816 and its peers over the selected period
Show on chart	Ticker	Company Name	Price	Change	% Change
	TW:2816	Union Insurance Co., Ltd.	40.85	14.09	52.67%
	TW:2852	First Insurance Co., Ltd.	28.65	2.65	10.19%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Nov 09, 2026

Union Insurance Co., Ltd. AI Stock Analysis