[Asia Economy Reporter Oh Hyung-gil] Despite deteriorating performance due to sluggish market conditions, life insurance companies focused on expanding their scale, resulting in changes in asset rankings. Shinhan Life and Dongyang Life each rose one rank, while Orange Life dropped two ranks.
However, non-life insurance companies saw little change in rankings, maintaining a stagnant state.
According to business reports submitted by insurers to the Financial Supervisory Service's electronic disclosure system on the 1st, Samsung Life recorded the largest asset size in the life insurance industry last year with total assets (separate basis) of KRW 287.3578 trillion. This represents about a 9.5% increase from KRW 262.2304 trillion the previous year, attributed to an increase in available-for-sale financial assets from KRW 146 trillion to KRW 165 trillion.
Hanwha Life followed, recording KRW 121.7568 trillion, up 6.1% from KRW 114.3024 trillion the previous year, while Kyobo Life grew 5.9% from KRW 101.4882 trillion to KRW 107.0893 trillion.
NH Nonghyup Life achieved a similar asset size to the previous year at KRW 64.8154 trillion, and Mirae Asset Life's assets increased by about 10% to KRW 37.924 trillion.
Notable changes were seen among mid-tier life insurers. Shinhan Life jumped to 6th place with KRW 34.1539 trillion, and Dongyang Life also entered 7th place with KRW 33.9479 trillion.
Orange Life, after joining the Shinhan Financial Group, dropped from 6th to 8th place in asset size. Its total assets slightly increased from KRW 32.7441 trillion to KRW 32.8413 trillion.
The competition for rankings in the life insurance sector is expected to intensify. With Shinhan Life and Orange Life announcing a corporate merger scheduled for July next year, there is a growing possibility they will surpass Nonghyup Life to rise to 4th place.
The ongoing acquisition battle for Prudential Life (with assets of KRW 21 trillion) is also a key point to watch. It is also of interest whether KB Life, with assets around KRW 10 trillion, will break into the top 10.
There was little change in the rankings of non-life insurers. Samsung Fire & Marine Insurance maintained its top position with total assets increasing 6.9% from KRW 78.9624 trillion to KRW 84.4368 trillion. Hyundai Marine & Fire Insurance and DB Insurance follow with KRW 45.8258 trillion and KRW 43.667 trillion, respectively.
Next in line are ▲KB Insurance KRW 36.5524 trillion ▲Meritz Fire & Marine Insurance KRW 23.1368 trillion ▲Hanwha General Insurance KRW 18.2097 trillion ▲Lotte Insurance KRW 16.2672 trillion ▲Heungkuk Fire & Marine Insurance KRW 12.6485 trillion ▲Nonghyup Property & Casualty Insurance KRW 10.647 trillion.
An industry insider said, "Life insurers are more sensitive to asset acquisition due to being more affected by low interest rates compared to non-life insurers," adding, "Restructuring is also proceeding mainly among life insurers rather than non-life insurers."
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