On the 10th, the Financial Supervisory Service announced that the solvency ratio (K-ICS·K-ICS) of insurance companies, after applying transitional measures, remained at a healthy level of 223.6% as of the end of June.
This figure represents a 4.7 percentage point increase compared to the previous quarter (218.9%). By sector, the K-ICS ratio for life insurance companies was 224.3%, and for non-life insurance companies, it was 222.7%. These represent increases of 4.9 percentage points and 4.4 percentage points respectively compared to the previous quarter.
The K-ICS ratio is an indicator of an insurer's capital soundness, calculated as the ratio of available capital to required capital. Starting this year, the standard for assessing insurers' soundness changed from RBC to K-ICS. To reduce the burden on insurers, the Financial Supervisory Service introduced transitional measures (application deferrals), with a total of 19 insurance companies applying for these measures.
After applying the transitional measures, the K-ICS available capital increased by 12.6 trillion KRW from the previous quarter to 259.5 trillion KRW. The required capital increased by 3.3 trillion KRW from the previous quarter to 116.1 trillion KRW.
The Financial Supervisory Service stated, "As of the end of June, the K-ICS ratio of insurance companies generally maintained a healthy level," and added, "For companies with ratios below 100% before applying the transitional measures, we plan to continuously monitor the implementation of their financial improvement plans."
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