Kyobo Life Insurance announced on June 12 that it has received an 'A1·Stable' credit rating from Moody's, one of the world's top three credit rating agencies.
Kyobo Life Insurance has maintained the A1 rating for 11 consecutive years since it became the first domestic life insurer to receive this grade in 2015.
This evaluation is an Insurance Financial Strength Rating (IFSR) that comprehensively considers an insurer's profitability, financial soundness, and risk management capabilities. Moody's cited strong business capabilities, solid capital adequacy, and stable profitability as the main factors behind the A1 rating.
Moody's stated, "The reaffirmation of Kyobo Life Insurance's A1 rating reflects its strong business capabilities, the sales power of its exclusive agent organization, solid capital adequacy, and stable profitability. The gradual decrease in high-interest guaranteed contracts and the increased proportion of health protection insurance, which are improving the product portfolio, are also positive factors."
Moody's expects Kyobo Life Insurance to continue maintaining stable profitability, capital adequacy, and strong market position, and has assessed the rating outlook as 'Stable.' Moody's explained, "Kyobo Life Insurance has high-quality capital based on a high proportion of core capital, and is expected to maintain a stable K-ICS (Korean Insurance Capital Standard) ratio in the future through conservative risk management and continued creation of new contract service margins (CSM)."
In March of this year, Kyobo Life Insurance also received an 'A+·Stable' credit rating from Fitch, which is the highest level in the industry. The company has maintained this rating for 13 consecutive years since it became the first in the industry to receive an A+ rating in 2013.
Despite increasing global economic uncertainty and stronger capital regulations, Kyobo Life Insurance continues to show steady growth. In the first quarter of this year, the company posted a net profit (separate basis) of 315.3 billion won, driven by improved insurance profit from increased sales of protection-type insurance. The K-ICS ratio, applying transitional measures, was 186.82%.
A Kyobo Life Insurance representative said, "This recognition reflects our strong profitability, solid financial structure, and proactive risk management capabilities," adding, "We will continue to pursue sustainable growth through stable profit generation and active market response."
Meanwhile, last month Kyobo Life Insurance also received the highest 'AAA' rating in the insurance financial strength evaluations from Korea's three major credit rating agencies: NICE Investors Service, Korea Ratings, and Korea Credit Rating.
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