Insurance Sales Were Strong... Dongyang Life 3Q Net Profit Down 80% YoY

Insurance Profits Increased but Investment Sector Losses Surge

Dongyang Life Insurance's net profit for the third quarter of this year plummeted by about 80% compared to the same period last year. While insurance profits showed growth, investment profits declined due to bond valuation losses and other factors.

On the 9th, Dongyang Life Insurance reported a consolidated net profit of 11.1 billion KRW for the third quarter of this year. This represents a sharp decrease of 79.8% compared to the same period last year and 70.2% compared to the previous quarter. Although profits in the insurance sector have steadily increased this year, losses in the investment sector are believed to be the cause.

As of the third quarter this year, Dongyang Life Insurance's insurance profit was 67.2 billion KRW, but it recorded an investment loss of 45.6 billion KRW. Investment profits have already been on a steady decline. In the first quarter, it was 134.6 billion KRW, but it decreased to 2.1 billion KRW in the second quarter.

However, premiums, which are equivalent to sales, especially Annualized Premium Equivalent (APE), have steadily grown this year. As of the third quarter, it reached 173.3 billion KRW, an increase of about 15 billion KRW compared to 156.1 billion KRW in the first quarter and 158.4 billion KRW in the second quarter. APE is the figure obtained by dividing all first premiums collected through new contract sales on an annual basis.

Dongyang Life Insurance explained that this was the result of continuously increasing sales of protection products such as health insurance and whole life insurance.

Meanwhile, the cumulative new contract insurance contract margin (CSM) for the third quarter was 560.9 billion KRW, up 26.2% compared to the third quarter of last year. The new solvency indicator, the Korea Insurance Capital Standard (K-ICS) ratio, was 183%, up 20.5 percentage points from the previous quarter. The operating asset yield as of the third quarter was 3.84%.

A Dongyang Life Insurance official stated, "We will continue to enhance corporate value based on long-term strategies such as expanding new protection insurance contracts and efficient management."