First Insurance Co., Ltd. (2852) AI Stock Analysis

First Insurance Co., Ltd.

(TWSE:2852)

Select Model

Rating:71Outperform

Price Target:TWD 30.00▲(4.71% Upside)

Action:initiatedcoverage

Date:11/09/26

First Insurance scores well on fundamentals and valuation. The strongest supports are an exceptionally clean, nearly debt-free balance sheet with a growing equity base, improving operating margins, and a cheap 8.3x P/E paired with a 6.2% dividend yield that provides meaningful income. Offsetting these strengths are decelerating fundamentals — revenue slipped 1.8% in 2025, earnings flattened, gross margin compressed sharply, and operating cash flow fell roughly 57% after an unusually strong prior year. Near-term technicals are the weakest element, with the stock trading below its 20- and 50-day averages and a negative MACD, though deeply oversold RSI and Stochastic readings and a position above the 200-day average suggest the longer-term trend has not broken. Net result: a defensive, income-oriented holding with solid financial footing but limited growth momentum.

Positive Factors

Conservative Balance SheetNear-zero debt-to-equity and steadily rising equity give First Insurance substantial capacity to absorb property-loss volatility and continue operating through adverse cycles. This conservative capitalization also preserves flexibility to support underwriting capacity without relying heavily on external funding.

Negative Factors

2025 Revenue ContractionRevenue declined about 1.8% in 2025 after modest growth in 2021–2024. A contraction after several years of positive movement indicates weaker top-line momentum, which can limit operating leverage and make it harder to sustain the recent profitability gains over the next several quarters.

First Insurance Co., Ltd. (2852) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 8.72B
Dividend Yield: 5.79%
Average Volume (3M): 449.70K
Price to Earnings (P/E): 8.8
Beta (1Y): 0.16
Revenue Growth: 23.63%
EPS Growth: 45.19%
Country: TW
Employees: 815
Sector: General
Sector Strength: 55
Industry: Insurance - Property & Casualty

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

Company Description

The First Insurance Co., Ltd., established in 1962 and based in Taipei, Taiwan, offers a comprehensive suite of insurance products and related services to both private individuals and businesses across the nation. Its extensive portfolio includes var...

First Insurance Co., Ltd. Financial Statement Overview

Summary

A conservatively run insurer with a standout balance sheet (score 84): essentially debt-free with a debt-to-equity ratio near zero, equity compounding 35% since 2020 to NT$9.15bn and funding roughly half of total assets, alongside a healthy 9.6% return on equity. The income statement (score 72) shows a strong multi-year recovery — net income up nearly six-fold since 2020 and operating margin at a six-year best of 14.6% — but momentum stalled in 2025 with revenue down 1.8% and earnings flat to slightly lower, while a sharp gross margin drop from ~83% to ~53% hints at rising claims or acquisition costs. Cash flow is the weakest link (score 58), with operating cash flow falling ~57% year-over-year and a history of lumpy, hard-to-forecast cash generation, though free cash flow still converted at ~94% of net income with minimal capital spending needs.

Income Statement

72Positive

Balance Sheet

84Very Positive

Cash Flow

58Neutral

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	8.47B	7.41B	7.80B	7.39B	6.93B	6.53B
Gross Profit	3.63B	3.91B	6.47B	6.07B	5.70B	5.35B
EBITDA	1.27B	1.11B	1.12B	804.73M	725.51M	690.76M
Net Income	981.23M	880.19M	903.30M	636.24M	558.85M	553.14M
Balance Sheet
Total Assets	20.09B	18.31B	19.71B	19.25B	17.65B	16.86B
Cash, Cash Equivalents and Short-Term Investments	2.06B	4.67B	5.07B	4.04B	3.92B	4.36B
Total Debt	17.14M	16.12M	2.98M	3.77M	5.13M	4.73M
Total Liabilities	10.85B	9.16B	11.01B	11.12B	10.09B	9.59B
Stockholders Equity	9.24B	9.15B	8.70B	8.13B	7.56B	7.27B
Cash Flow
Free Cash Flow	939.20M	505.63M	1.25B	274.45M	34.96M	726.00K
Operating Cash Flow	971.73M	537.16M	1.26B	296.95M	63.79M	43.13M
Investing Cash Flow	-56.27M	-38.99M	-12.04M	-22.50M	-28.84M	-42.56M
Financing Cash Flow	-635.22M	-633.50M	-343.46M	-220.99M	-368.50M	-108.73M

First Insurance Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:2852 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	69Neutral	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:2852 and its peers over the selected period
Show on chart	Ticker	Company Name	Price	Change	% Change
	TW:2852	First Insurance Co., Ltd.	28.65	2.79	10.79%
	TW:2816	Union Insurance Co., Ltd.	40.85	14.24	53.49%

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

First Insurance Co., Ltd. AI Stock Analysis