Korean Insurance Companies Excelling in Overseas Business... Net Profit Increased by 99%

Source: Financial Supervisory Service

[Asia Economy Reporter Changhwan Lee] Last year, the overseas business performance of Korean insurance companies showed significant growth.

According to the Financial Supervisory Service on the 24th, the net income of 11 domestic insurance companies operating overseas reached a total of 90.8 million USD (103.9 billion KRW) last year, an increase of 99.1% compared to the previous year.

As of the end of last year, a total of 11 Korean insurance companies operated 38 branches in 11 countries overseas. The branch locations include 23 in Asia, the most, 11 in the United States, 3 in the United Kingdom, and 1 in Switzerland. Among Asian countries, there are 5 in China, 5 in Vietnam, and 4 in Indonesia.

Last year, Shinhan Life Insurance entered Vietnam for the first time, and Korean Re and DB Insurance opened new branches in the United States, increasing the total number by 3 compared to 2020.

Total assets as of the end of last year were 6.56 billion USD, up 21.3% from the previous year. Liabilities increased by 32%, and capital increased by 7.8%.

The Financial Supervisory Service evaluated, "Insurance company overseas branches realized profits mainly in the Asian and U.S. markets, but management instability factors remain due to the impact of COVID-19 and a vulnerable profit structure."

It added, "We will regularly monitor the impact of COVID-19 on insurance company overseas branches and improvements in profit structures such as localization strategies. We plan to closely check the business progress and financial soundness of newly entered overseas branches and continuously monitor risk factors."