Kyobo Life Insurance's Stock Rises and Costs Decrease... Q1 Net Profit Up 349%

[Asia Economy Reporter Oh Hyung-gil] Kyobo Life Insurance announced on the 17th that its net profit for the first quarter increased by 349% year-on-year to 499.8 billion KRW.

Although sales decreased by 3.2% compared to the same period last year to 5.7818 trillion KRW, operating profit rose by 319% year-on-year to 678.9 billion KRW.

Kyobo Life Insurance attributed the strong performance to improved variable annuity guarantee gains due to stock price increases and reduced operating expenses.

A Kyobo Life Insurance official explained, "Compared to the first quarter of last year, the stock price rebounded and long-term market interest rates rose, creating a favorable macro environment that reduced the burden of variable annuity guarantee reserves. Additionally, special sales support expenses, which had significantly increased due to the COVID-19 pandemic last year, decreased, leading to improved performance."

Also, on a separate basis, the solvency capital ratio (RBC) for the first quarter stood at 291.2%, indicating excellent capital adequacy. The annualized return on equity (ROE) was 16.6%, and the return on invested assets was 3.44%, demonstrating high profitability.

Leveraging stable insurance operations, high profitability, and capital adequacy, Kyobo Life Insurance received the highest rating among domestic financial companies for insurance payment capability from global credit rating agencies.

In last month's regular review, Moody's reaffirmed Kyobo Life Insurance's insurance payment capability credit rating at A1 for the seventh consecutive year and upgraded the rating outlook from 'negative' to 'stable.' Another global credit rating agency, Fitch, also maintained Kyobo Life Insurance's insurance payment capability rating at A+ for the ninth consecutive year and assessed the rating outlook as stable.