Kyobo Life Insurance Maintains Fitch 'A+' for 14 Consecutive Years... Longest Streak Among Korean Life Insurers

Positive Assessment for Stable Contractual Service Margin (CSM) and Robust Equity Capital

Kyobo Life Insurance announced on January 21 that Fitch Ratings, one of the world’s top three credit rating agencies, has maintained its Insurer Financial Strength (IFS) rating at 'A+' and affirmed its outlook as 'Stable'.

Kyobo Life Insurance has maintained this rating for 14 consecutive years since it became the first domestic life insurer to receive an A+ rating in 2013. This marks the longest period any Korean life insurance company has held this rating.

Kyobo Life Insurance Gwanghwamun Headquarters. Kyobo Life Insurance

In its latest assessment, Fitch cited Kyobo Life Insurance’s enhanced profitability, solid capital adequacy, and stable market position as the main reasons for maintaining the A+ rating.

Fitch stated in its press release, “Kyobo Life Insurance’s profitability is expected to remain robust, supported by improved insurance underwriting results and higher investment returns,” adding, “The company manages claims volatility through its exclusive agent-driven face-to-face sales channel, which also drives performance growth.”

Profitability indicators have also improved significantly. According to Fitch’s assessment for the third quarter of last year, Kyobo Life Insurance’s return on equity (ROE) reached 20.4%, more than doubling from 8.9% at the end of 2024. This improvement was attributed to the company’s ability to finely manage risk from the insurance enrollment stage via its exclusive agent channel, thereby stabilizing claims volatility.

Kyobo Life Insurance’s solid financial soundness has also drawn attention amid changes in capital regulations. Fitch projected that the company would maintain a 'Strong' level of capital adequacy, backed by a stable contractual service margin (CSM) and robust equity capital. As of the third quarter of last year, Kyobo Life Insurance’s K-ICS ratio, after applying transitional measures, stood at 205.2%.

Fitch further explained, “Kyobo Life Insurance has ample capacity to maintain short-term capital adequacy by issuing hybrid securities if necessary,” adding, “The company has consistently maintained its core capital ratio above 100% after applying transitional measures.” The company’s practice of reducing the maturity gap between assets and liabilities to less than one year, in accordance with asset-liability management (ALM) principles, was also positively evaluated for its effectiveness in managing interest rate sensitivity.

In terms of corporate profile, Kyobo Life Insurance was rated as 'Favourable'. As of the third quarter of last year, the company held approximately a 14% market share in premium income.

A Kyobo Life Insurance representative stated, “This credit rating reaffirms our solid financial structure and proactive risk management capabilities in the global market,” adding, “We will continue to enhance customer trust and pursue sustainable growth through stable profit generation and agile market response.”

Meanwhile, Kyobo Life Insurance has maintained an 'A1 (Stable)' rating from Moody’s for 11 consecutive years. It also holds the highest 'AAA' rating for Insurer Financial Strength from Korea’s three major credit rating agencies: Korea Ratings, Korea Investors Service, and NICE Investors Service.