Dongyang Life, Lee Moon-koo Administration's Health Insurance Drive Continues This Year

Net Profit Hits Record 310.2 Billion KRW Last Year
Strengthened Protection Insurance Sales Focused on Health Insurance
Active Management of Capital Soundness Through Subordinated Bond Issuance

Dongyang Life Insurance recorded its highest-ever performance last year by strengthening its sales of protection insurance centered on health insurance.

According to the financial sector on the 25th, Dongyang Life Insurance's separate basis net profit for last year was 310.2 billion KRW, an increase of 17.1% compared to the previous year. This is the highest performance ever. The main reason for the performance increase was strengthening sales of protection insurance centered on health insurance after the introduction of the 2023 International Financial Reporting Standards (IFRS17).

Last year, Dongyang Life Insurance launched the '(Non) Guardian Angel Surgery Treatment Insurance Anyone Needs' which broadly covers not only basic surgeries but also new medical surgeries, and the '(Non) Guardian Angel Dementia Care Dongyang Life Insurance' equipped with a special contract that guarantees a daily allowance when using day and night care centers, gaining great popularity in the market.

Exterior view of Dongyang Life Insurance headquarters. Provided by Dongyang Life Insurance

Based on this popularity, insurance profit and loss last year recorded 274.4 billion KRW, up 17.2% compared to the same period last year. Premium income from protection insurance grew 14.8% year-on-year to 2.9111 trillion KRW. The annualized premium equivalent (APE), which converts premiums received by the insurer on a one-year basis, increased 23.5% year-on-year to 919.7 billion KRW. Among these, protection insurance APE was 862 billion KRW, growing 36.8% compared to the same period last year, solidifying the profit structure centered on protection insurance.

The new contract insurance contract margin (CSM) was 732 billion KRW, and the year-end CSM balance was 2.6711 trillion KRW. Among these, the new contract CSM for protection insurance accounted for 712.7 billion KRW.

The solvency ratio (K-ICS) was actively managed through co-reinsurance underwriting and subordinated bond issuance despite issues faced by the entire industry such as market interest rate declines and regulatory changes. As a result, K-ICS at the end of last year recorded 154.7%, exceeding the financial authorities' recommended level of 150%. Dongyang Life Insurance recently held a board meeting and decided to issue up to 700 billion KRW in capital securities to proactively manage capital and defend K-ICS.

Dongyang Life Insurance plans to continue its sales strategy focused on health insurance this year as well. A Dongyang Life Insurance official said, "We will develop products that timely respond to market demands to build a stable profit and loss base," adding, "We will leap forward as a company balanced in quantity and quality by advancing internal controls and promoting work innovation based on artificial intelligence (AI)."