To meet the objective of presenting full and complete information about the financial position, financial performance, and cash flows of an insurance enterprise, financial reports shall contain explanatory notes disclosing the following:
1.Company history and scope of business operations.
2.A statement undertaking that the preparation of financial report complies with these Regulations, applicable laws and regulations (the titles of the laws or regulations), as well as IFRS, IAS, IFRIC Interpretations, and SIC Interpretations.
3.The date on which the financial report was authorized for issue and the process involved in authorizing the financial report for issue.
4.The effect or impact that may arise when it has or has not applied a new or revised IFRS, IAS, IFRIC Interpretation, or SIC Interpretation endorsed by the FSC.
5.A summary of significant accounting policies used that are relevant to an understanding of the financial report, and the measurement basis (or bases) used in preparing the financial report.
6.Significant accounting judgments, estimations, and assumptions, as well as information about the assumptions it makes and other major sources of estimation uncertainty.
7.Objectives, policies and processes for managing capital, and any change in capital structure, including funding, liability, and equity.
8.If for a special reason there is a change in accounting treatment, thus affecting the comparison of financial data between two successive periods, the reason for the change and its effect on the financial report shall be noted.
9.The following information shall be disclosed for the issuance of insurance contracts that meet the definition set out in IFRS 17:
(1)The amounts recognized in the financial statements for contracts within the scope of IFRS 17 prescribed in paragraph 93 (a), the significant judgments, and changes in those judgments, made when applying IFRS 17 prescribed in paragraph 93 (b) of IFRS 17, and the nature and extent of the risks from contracts within the scope of IFRS 17 prescribed in paragraph 93 (c) of IFRS 17, including but not limited to the following items:
A. Reconciliations from the opening to the closing balances separately for each of liabilities (or assets) for remaining coverage, liabilities for incurred claims, and any loss component.
B. An insurance enterprise shall disclose when it expects to recognize the contractual service margin remaining at the end of the reporting period in profit or loss, quantitatively, in appropriate time bands. Such information shall be provided separately for insurance contracts issued and reinsurance contracts held.
C. An insurance enterprise shall disclose the requirements for the inputs, assumptions, and estimation techniques used for significant judgments and changes in judgments made.
(2)Other information required for disclosure in accordance with IFRS 17.
10. If it is necessary to provide the basis of valuation for any amount, financial instrument, or other items presented in the financial report, that basis of valuation shall be noted.
11. If any item presented in the financial report is subject to any legal, regulatory, contractual, or other restriction, the circumstances and timing of the restriction and other related information shall be noted.
12. Material contingent liabilities and unrecognized contractual commitments.
13. Financial risk management objectives and policies.
14. Borrowing to meet cash flow needs arising from payment of major benefits.
15. The addition, construction, idling or sale of major operating assets and investment assets.
16. Significant transactions with related parties.
17. Losses due to material disasters.
18. Material litigation pending or concluded.
19. The signing, completion, voidance, or lapse of material contracts.
20. Information on financial instruments. The information shall be disclosed in accordance with IFRS 7, including the significance of financial instruments for an entity's financial position and performance, qualitative and quantitative information on risk exposure for each type of financial instrument, and if overlay approach is selected, relevant information required of disclosure in accordance with IFRS 4.
21. Relevant information about leases. The information shall be disclosed in accordance with IFRS 16, including disclosure of information that gives a basis for the primary of the financial reports to assess the effect that the leases have on the financial position, financial performance, and cash flows of the Insurance Enterprise, and relevant qualitative and quantitative information about its leasing activities.
22. Information about employee benefits. The information shall be disclosed in accordance with IAS 19, and shall include the influence of defined benefit plans on the amount, timing, certainty of future cash flows, actuarial losses arising from changes in demographic assumptions and financial assumptions, and the expected contributions in the next reporting period in the following financial year.
23. An insurance enterprise that offers investment-linked insurance plans shall disclose, separately for insurance contracts that comply with and those that do not comply with the definition set out in IFRS 17, in the notes the statement of reconciliation for assets on insurance products in separate accounts (Form 6 - 36), including the increase and decrease of assets, related expenses, and investment gain or loss.
24. An insurance enterprise that operates non-life insurance shall disclose the amount of respectively the retained gross earned premium from compulsory and non-compulsory insurance and present the calculation process.
25. An insurance enterprise that operates non-life insurance shall disclose the amount of respectively the retained claims for compulsory and non-compulsory insurance and present the calculation process.
26. An insurance enterprise that operates non-life insurances hall disclose the insurance retention limit per risk unit by type of insurance.
27. An insurance enterprise that operates compulsory auto liability insurance shall disclose in the Notes information on its assets, liabilities, income and costs in tabulated format (Forms A ~ B).
28. Investment items and limits under discretionary management of a securities investment trust enterprise or securities investment consulting enterprise.
29. Operating segment information. The information shall be disclosed in accordance with IFRS 8.
30. Information on discontinued operations.
31. Major operations, assets and liabilities assigned to or assumed from other enterprises.
32. When the insurance enterprise is a subsidiary of a financial holding company, manner of revenue, cost, expense and profit (loss) sharing between the insurance enterprise and the financial holding company and other subsidiaries in terms of business or trading activities, joint business promotions, sharing of information, and sharing of facilities or premises.
33. Information on investment in the Mainland Area.
34. In the case of private placement of securities, the type, issue date, and amount shall be disclosed.
35. Information about investments in derivative instruments.
36.Information for which disclosure is required by law.
37. When subsidiaries hold shares in the parent, the names of the subsidiaries and the shareholdings, amounts, and reasons shall be separately presented.
38. Material organizational adjustments and material management reforms.
39. Material effects of changes in government laws and regulations.
40.Description of important accounting policy for foreign exchange valuation reserve mechanism, hedging strategy and risk exposures, he effect on profit (loss), liabilities and equity by not applying this reserve mechanism and calculated earnings per share without applying this reserve mechanism.
41. Fair value information. The information shall be disclosed in accordance with IFRS13, and shall include information on recurring or non-recurring fair value measurement of assets and liabilities, inputs such as fair value valuation technique and parameters or assumptions used in fair value measurement, and Level 3 of fair value hierarchy.
42. Foreign-currency-denominated assets and liabilities that have significant influence, including the amount of risk exposure, currency, and exchange rate for monetary and non-monetary items denominated in foreign currencies.
43. The net worth ratio which means equity divided by total assets excluding separate accounts for investment-linked insurance.
44. Supporting information for items presented in the balance sheet and in the statements of comprehensive income, of changes in equity and of cash flows, including material information that could affect the insurance enterprise’s future cash flows, or other necessary descriptions essential for avoiding misunderstanding by the primary users or for the fair presentation of the financial reports.

A financial report shall include explanatory notes on the following subsequent events that occur between the balance sheet date and the date when the financial report is authorized for issue:
1. Change in capital structure.
2. Borrowing to meet cash flow needs arising from payment of major benefits..
3. The addition, construction, idling or sale of major operating assets and investment assets.
4. Significant changes in the premium rate schedule for major direct underwriting business.
5. Significant changes in policy sales channels and policies for major direct underwriting business.
6. Significant changes in the method for setting aside reserves.
7. Major operations, assets and liabilities assigned to or assumed from other enterprises.
8. Losses due to material disasters.
9. Material litigation pending or concluded.
10. The signing, completion, voidance, or lapse of material contracts.
11. Material organizational adjustments and material management reforms.
12. Material effects of changes in government laws and regulations.
13. Other material events or measures sufficient to affect future financial position, financial performance, and cash flows.

An insurance enterprise shall separately disclose in the Notes information on the following events between the insurance enterprise and its subsidiaries during the current period, and on parent-subsidiary transactions:
1.Information on significant transactions:
(1)Acquisition of real estate reaching NT$100 million or 20% of paid-in capital or more.
(2)Disposal of real estate reaching NT$100 million or 20% of paid-in capital or more.
(3)Transactions with related parties involving main business items reaching NT$100 million or 20% of paid-in capital or more.
(4)Accounts receivable from related parties reaching NT$100 million or 20% of paid-in capital or more.
(5)Trading in derivative instruments.
(6)Others: The business relationship between the parent and the subsidiaries and between each subsidiary, and the circumstances and amounts of any significant transactions between them, and accounting policies if the parent and subsidiaries adopt different accounting policies; in addition, amounts presented in the financial report shall be separately disclosed..
2.Information on investees (other than those in the Mainland Area):
(1)If the insurance enterprise directly or indirectly exercises significant influence or control over, or has a joint venture interest in the investee, it shall disclose information on the investee, reporting the name, location, principal business activities, original investment amount, shareholding at the end of the period, profit or loss for the period, and recognized investment gain or loss.
(2)If the insurance enterprise directly or indirectly exercises significant influence or control over, or has a joint venture interest in the investee, it shall disclose additionally information on loans made to others, endorsements/ guarantees for others, securities held at the end of the period, and transactions where the aggregate purchases or sales of the same security reaching NT$100 million or 20% of paid-in capital or more.
(3)The insurance enterprise is exempted from the requirements of items (1) to (6) of the preceding subparagraph when the investee it controls directly or indirectly is a financial, insurance, or securities enterprise.
(4)When the total assets or insurance revenue of an investee directly or indirectly controlled by the insurance enterprise does not reach 10% that of the insurance enterprise or the insurance enterprise directly or indirectly controls the investee’s personnel, finance or business, the insurance enterprise is only required to disclose information on loans made to others, endorsements/ guarantees for others, securities held at the end of the period, and transactions where the aggregate purchases or sales of the same security reaching NT$100 million or 20% of paid-in capital or more.
(5)The term “20% of paid-in capital” referred to under this item is calculated based on the paid-in capital of the insurance enterprise that has direct or indirect control of the investee.
3.Investment and business information on investments in the Mainland Area:
(1) If the insurance enterprise directly or indirectly exercises significant influence or control over, or has a joint venture interest in an investee in the Mainland Area, it shall disclose information on the investee company, showing the name, principal business activities, paid-in capital, method of investment, inward and outward remittance of funds, shareholding ratio, profit or loss for the period and recognized investment gain or loss, carrying amount of the investment at the end of the period, repatriated investment gains, and limit on the amount of investment in the Mainland Area.
(2)If the investee is an insurance enterprise, disclose additionally its location, fund utilization status and profit (loss) thereon, amounts of insurance contract assets and liabilities and reinsurance contract assets and liabilities, insurance revenue and its percentage of the insurance revenue of the investing insurance enterprise, and insurance service expenses and their percentage of the insurance service expenses of the investing insurance enterprise.
(3)Any of the following significant transactions with investees in the Mainland Area, either directly or indirectly through a third area, and their prices, payment terms, and unrealized gains or losses:
A.For transactions involving each other’s main business, such as underwriting an insurance policy where the proposer is the investee, the amount and percentage of transactions and the balance and percentage of the related payables at the end of the period.
B.The amount of property transactions and the amount of the resultant gains or losses.
C.The highest balance, the end of period balance, the interest rate range, and total current period interest with respect to financing of funds.
D.Other transactions that have a material effect on the profit or loss for the period or on the financial position, such as the rendering or receiving of services.
E.The amount or balance of transactions mentioned in subitems A ~ D above that reaches 20% or more of the insurance enterprise’s total amount or balance of such transactions shall be separately presented, while the rest may be added up and reported as an aggregate amount.
(4)When an insurance enterprise recognizes investment gain or loss using the equity method or prepares consolidated financial statements with respect to a Mainland Area investee, the recognition or preparation shall be made based on the investee's financial report audited and certified by an international accounting firm having a business cooperation relationship with an R.O.C. accounting firm, provided that when preparing first quarter and third quarter interim consolidated financial reports, the recognition or preparation may be made based on the investee's financial report reviewed by an international accounting firm having a business cooperation relationship with an R.O.C. accounting firm.
(5)The location of the insurance enterprise’s branch in Mainland Area, the branch’s outward remittances of operating capital, fund utilization status and profit (loss) thereon, amounts of insurance contract assets and liabilities and reinsurance contract assets and liabilities, insurance revenue and its percentage of the insurance revenue of the investing insurance enterprise, insurance service expenses and their percentage of the insurance service expenses of the investing insurance enterprise, and profit (loss) status.
(6)If the overseas branch of an insurance enterprise has reinsurance business dealings with the branch of a foreign insurance enterprise in Mainland Area or the overseas branch of a Mainland Area insurance enterprise, the name of company that the overseas branch has dealings with , insurance revenue from insurance service results, and the share allocation of reinsurance premiums paid for the income or expenses from reinsurance contracts held.
(7)If the overseas branch of an insurance enterprise has insurance underwriting business dealings with Mainland Area individuals, juristic persons, organizations or other institutions, the name of business customer involving significant amount and actual premiums received. The actual premiums received refer to insurance and reinsurance premiums received from the sale of insurance policies with significant insurance risks in the business of insurance and reinsurance assumed.
4. Notes to the parent company only financial report shall disclose relevant information in accordance with the preceding three subparagraphs herein. However if the total assets or insurance revenue of an investee does not reach 10% that of the insurance enterprise, or the insurance enterprise directly or indirectly controls the investee’s personnel, finance or business, provisions of Subparagraph 2 herein do not apply. If the transactions disclosed by the insurance enterprise pursuant to the aforementioned provisions have been offset during the preparation of consolidated financial report, the insurance enterprise should provide proper explanations in the notes.
5.Information on major shareholders: the insurance enterprise whose stock is listed on the TWSE or listed on the TPEx shall disclose the names, numbers of shares held, and shareholding percentages of shareholders who hold 5 percent or more of the insurance enterprise's equity. For this purpose, the insurance enterprise may request the centralized securities depository enterprise to provide relevant information.(Form 21)

An insurance enterprise shall fully disclose information on related party transactions in accordance with IAS 24, and in compliance with the following provisions:
1. The name and relationship of the related party shall be presented.
2. If the transaction amount or balance of any single related party reaches 10% or more of the insurance enterprise’s total amount or balance of such transactions, the name of each such related party shall be individually presented.
In considering whether a counterparty is a related party, attention shall be directed to the substance of the relationship in addition to the legal form. Unless it can be established that no control, joint control, or significant influence exists, a party falling within any of the following shall be deemed to have a substantive related party relationship, and relevant information shall be disclosed in the Notes in accordance with IAS 24:
1. An affiliated enterprise within the meaning given in Chapter VI-I of the Company Act, and any of its directors, supervisors, and managerial officers.
2. A company or institution governed by the same general management office as the insurance enterprise, and any of its directors, supervisors, and managerial officers.
3. A person holding the position of manager or higher in the general management office.
4. A company or institution shown as an affiliated enterprise in the insurance enterprise’s public announcement or publications.
5. Another company or institution whose board chairman or president is the same person as, or is the spouse or a relative within the second degree of kinship of, the board chairman or president of the insurance enterprise.