Last Year, Non-Life Insurers' Net Profit Increased by 27%... Life Insurers' Decreased by 6%

The net profit of insurance companies, including 23 life insurance companies and 31 non-life insurance companies, recorded 9.2 trillion KRW last year, showing an 11.1% increase compared to the previous year.

On the 21st, the Financial Supervisory Service (FSS) disclosed the 'Insurance Company Management Performance (Provisional)' report, stating that the net profit of life insurance companies was 3.7055 trillion KRW, a 6% decrease from the previous year, while the net profit of non-life insurance companies was 5.4746 trillion KRW, a 26.6% increase compared to the previous year.

Premium income continued to grow, reaching 252.8 trillion KRW, an increase of 24.6 trillion KRW from the previous year. Premium income for life insurance companies was 132.6836 trillion KRW, up 10.1% year-on-year, and for non-life insurance companies, it was 120.1108 trillion KRW, growing 11.5% compared to the previous year.

Last year, the return on assets (ROA) and return on equity (ROE) of insurance companies were 0.69% and 8.22%, respectively, rising by 0.07 percentage points and 2.27 percentage points compared to the previous year. Total assets and equity last year were 1,310.1 trillion KRW and 88.9 trillion KRW, respectively, decreasing by 3.6% and 34% compared to the end of the previous year.

The FSS stated, "We will strengthen continuous monitoring in preparation for major risk factors such as interest rate fluctuations and the implementation of new standards like IFRS17," adding, "We plan to proactively respond by encouraging insurance companies with concerns about financial soundness to enhance their loss absorption capacity."