Net Profit of 295.7 Billion KRW on a Separate Basis Last Year
In the first year of the new International Financial Reporting Standards (IFRS17) implementation, Dongyang Life Insurance recorded a net profit of 300 billion KRW last year, achieving the highest performance since its establishment. Zhou Guodan's leadership is praised for shining through.
Dongyang Life Insurance announced on the 29th that its net profit on a separate basis last year increased by 204.8% compared to the previous year, reaching 295.7 billion KRW.
With the introduction of IFRS17 making the Contractual Service Margin (CSM) more important, Dongyang Life Insurance expanded sales of protection products such as health insurance, which are favorable for increasing CSM, starting in 2022. The protection annualized premium equivalent (APE) rose by 79.4% to 630.1 billion KRW. CSM increased by 34.6% to 760.2 billion KRW.
In the investment sector, active rebalancing of managed assets led to an asset yield of 3.83%, up 1.17 percentage points from the previous year. The new solvency ratio (K-ICS) also improved by 39.8 percentage points to 192.9%, maintaining a stable solvency ratio.
[Photo by Dongyang Life Insurance]
After experiencing poor performance since 2017, Dongyang Life Insurance stopped its negative growth after about seven years, with leadership being cited as the reason. Appointed in 2022, CEO Zhou judged that the company needed to redefine its targets, strategies, and business model, focusing on refining organizational management to build a sustainable growth foundation during his tenure.
Additionally, CEO Zhou expanded IT investments based on five principles: long-termism, sustainability, enhanced communication, compliance management, and profit sharing. For example, by promoting the Information Strategy Plan (ISP), the company strengthened its competitiveness in the digital financial environment. It also enhanced middle and back office capabilities to establish a sustainable future growth foundation.
Under CEO Zhou’s belief that "profits generated by the company should be shared with employees," efforts were made to improve wages and welfare. Last year, Dongyang Life Insurance decided on the industry's highest wage increase rate and paid performance bonuses earlier this month that matched the record-high results.
An insurance industry official said, “Since CEO Zhou’s appointment, Dongyang Life Insurance’s performance and stock price have improved based on core business competitiveness. Attention is focused on whether growth will continue on the foundation laid by CEO Zhou.”
CEO Zhou resigned yesterday due to health reasons. A Dongyang Life Insurance official explained, “He decided to resign because he judged that he had accomplished to some extent what he aimed for at Dongyang Life Insurance, such as establishing a sustainable business model and building a competitive middle and back office.”
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