Mirae Asset Life Insurance Surpasses 50% Market Share in Variable Insurance Sector

MVP Fund Surpasses 2 Trillion Won in Net Assets

[Image source=Yonhap News]

[Asia Economy Reporter Oh Hyung-gil] Mirae Asset Life Insurance has surpassed a 50% market share (MS) in the variable insurance market, centered on the 'MVP Fund.'

According to the insurance industry on the 28th, Mirae Asset Life Insurance recorded initial variable insurance premiums of 701 billion KRW from January to July, exceeding a 50% domestic variable insurance MS. After maintaining a 30% range with 530 billion KRW in 2018 and 590 billion KRW last year, it succeeded in raising the share to half this year.

This is thanks to the steady popularity of the variable insurance 'MVP Fund,' the pioneer of discretionary asset allocation funds. Launched in April 2014, the MVP Fund is the industry's first discretionary global asset allocation fund where the insurer's asset management experts directly manage all asset operations from strategy formulation to execution on behalf of customers.

In September, it surpassed 2 trillion KRW in net assets in the shortest period in the industry and achieved a cumulative return of 52.5%, drawing attention as the optimal alternative for securing stable long-term returns in a low-interest-rate era.

In particular, variable insurance requires active management by flexibly switching between stocks, bonds, or investment destinations in response to environmental changes to increase returns. For example, if a stock price decline is expected, switching to funds with a low stock allocation or bond-type funds is necessary, and if a stock price rise is expected, increasing the stock allocation is required. However, it is practically difficult for individual investors to analyze the investment environment daily and change investment destinations accordingly.

Chosung-sik, Head of Asset Management at Mirae Asset Life Insurance, said, "Mirae Asset Life Insurance is the first in the industry to provide asset management services using a global asset allocation strategy in variable insurance funds," adding, "Many customers will prepare for a happy retirement plan with the MVP Fund, which invests reasonably in global quality assets."