Last Year Insurance Companies' Overseas Branches Recorded 20.8 Billion Won Losses... "Typhoon and Sanbul Impact"

Operating 41 Overseas Branches in 11 Countries by 11 Insurance Companies
Life Insurance 82.7 Billion KRW Surplus
Non-Life Insurance 104.7 Billion KRW Deficit

Last year, overseas subsidiaries of domestic insurance companies recorded a turnaround to losses. While life insurance companies made profits, non-life insurance companies suffered significant losses due to typhoons and wildfires.

According to the Financial Supervisory Service on the 30th, as of last year, 11 insurance companies, including 4 life insurers and 7 non-life insurers, operated 41 overseas branches in 11 countries. By region, the number of overseas branches was highest in Asia (25), followed by the United States (12), the United Kingdom (3), and Switzerland (1). Among these overseas branches, 31 were in the insurance business and 10 in financial investment.

[Source=Financial Supervisory Service]

These branches posted a net loss of $15.01 million (approximately KRW 20.8 billion) last year. In the previous year, they had recorded a net profit of $122.01 million (approximately KRW 168.1 billion), marking a turnaround to losses. The results varied by sector. Life insurers posted a net profit of $60 million (approximately KRW 82.7 billion), an increase of $28 million (86.1%) compared to the previous year, due to expanded insurance operations and the effects of changes in accounting standards. On the other hand, non-life insurers saw a decrease in profit of $166 million compared to the previous year, resulting in a net loss of $76 million (approximately KRW 104.7 billion). Typhoons in the Guam area in May and the Maui wildfires in Hawaii in August last year negatively impacted performance.

Assets of overseas branches amounted to $6.44 billion (approximately KRW 8.3 trillion), an increase of $110 million (1.7%) compared to the previous year ($6.33 billion). Capital increased by $450 million (17.6%) to $3 billion compared to the previous year. Despite the net loss, changes in accounting standards and capital injections influenced this increase. Liabilities decreased by $340 million (9%) to $3.44 billion compared to the previous year.

A Financial Supervisory Service official stated, "We will monitor the financial soundness of overseas branches and the business progress of newly entered branches," adding, "We will actively support insurance companies' overseas expansion by resolving management difficulties of overseas branches."