Kyobo Life Insurance announced on May 15 that its consolidated net profit for the first quarter of this year was KRW 285.4 billion, down 10.8% compared to the same period last year.
Insurance profit rose to KRW 163.1 billion, a 16.6% increase from KRW 139.8 billion in the same period last year, driven by increased sales of protection-type products such as health insurance. The company explained that the continuous strengthening of its family and health protection product lineup led to improved sales and profitability of protection-type insurance.
Investment profit was KRW 242.3 billion, an 18.7% decrease compared to KRW 297.9 billion in the same period last year. This was due to reduced valuation and disposal gains on financial products caused by increased market volatility.
On a separate basis, the Contractual Service Margin (CSM) for new insurance contracts reached KRW 257.3 billion, supported by strong sales of protection-type insurance. The cumulative CSM at the end of the first quarter stood at KRW 6.1979 trillion.
A Kyobo Life Insurance official stated, "We are continuing proactive asset portfolio management, including replacement trading of short- and long-term bonds and securing competitive bonds and loan assets, to enhance asset holding yield." The official added, "We are also focusing on risk management by expanding investments in long-term bonds from an asset-liability management (ALM) perspective and reducing capital volatility resulting from interest rate changes."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
