Insurance Companies' Cumulative Net Profit for Q3 at 11.2911 Trillion Won, Down 15.2% Year-on-Year

Life Insurers' Net Profit Down 8.3% Due to Higher Loss Burden Costs
Non-life Insurers' Net Profit Falls 19.6% Amid Worsening Loss Ratios in Auto Insurance and Others

The cumulative net profit of insurance companies for the third quarter of this year has decreased by more than 2 trillion won compared to last year.

According to the "2025 Third Quarter Insurance Company Business Performance (Provisional)" released by the Financial Supervisory Service on the 19th, the net profit of insurance companies was 11.2911 trillion won, down 15.2% (2.0191 trillion won) from the same period last year.

By sector, life insurers (22 companies) posted a net profit of 4.8301 trillion won, down 8.3% (439.1 billion won) compared to the same period last year. The insurance profit from their core business decreased by 953.4 billion won year-on-year due to increased loss burden costs. However, investment profit increased by 450.8 billion won, thanks to improved asset disposal and valuation gains.

Non-life insurers (31 companies) recorded a net profit of 6.461 trillion won, a decrease of 19.6% (1.58 trillion won) from the same period last year. During the same period, insurance profit declined by 2.7478 trillion won due to a worsening loss ratio in automobile insurance and other lines. However, investment profit increased by 880.8 billion won, mainly from asset management gains.

Insurance premiums, which correspond to the sales of insurance companies, amounted to 183.3829 trillion won, an increase of 8.4% (14.1977 trillion won) compared to the same period last year. Life insurers' premiums reached 89.417 trillion won, up 10.7% year-on-year. By product, sales of protection-type insurance (12.9%), variable insurance (1.3%), and retirement pensions (46.4%) increased, while savings-type insurance (-2.7%) decreased.

Non-life insurers' premiums amounted to 93.9659 trillion won, up 6.3% (5.5472 trillion won) from the same period last year. Sales of long-term insurance (7%), general insurance (4.2%), and retirement pensions (16.9%) expanded, while automobile insurance (-1.8%) declined.

The return on assets (ROA), an indicator of insurance company profitability, was 1.16%, down 0.27 percentage points from the same period last year. During the same period, the return on equity (ROE) was 10.26%, a decrease of 1.02 percentage points.

Total assets of insurance companies stood at 1,327.2 trillion won, up 4.6% (58.3 trillion won) compared to the end of last year. Total liabilities increased by 4.4% (49.1 trillion won) to 1,175.9 trillion won. Equity capital expanded by 6.4% (9.1 trillion won) to 151.3 trillion won.

An official from the Financial Supervisory Service stated, "Continuous efforts are needed to enhance financial soundness in preparation for financial market volatility caused by internal and external uncertainties," adding, "We will closely monitor major risk factors such as the worsening loss ratio and proactively respond to changes in insurance company profit and financial soundness."