South Korean insurers bag $10b in profits for 2024

The increase was mainly driven by higher investment income across life and non-life.

The preliminary net income of 22 life insurance and 32 non-life insurance companies in South Korea accumulated $10.32b (KRW14.14t) for 2024, up 4.6% year-on-year (YoY), data from the Financial Supervisory Service showed. 

The increase was mainly driven by higher investment income across both life and non-life segments.

Life insurance companies reported a net income of $4.1163b (KRW5.6374t), up 7.1% YoY.

Despite a $581.4m (KRW796.4b) decline in insurance income due to stricter incurred but not reported (IBNR) reserve standards, investment income jumped $985.3m (KRW1.3498t) on the back of higher interest and dividend earnings.

Nonlife insurers posted $6.2098b (KRW8.5066t) in net income, up 3.1% YoY. 

Investment income grew by $430.5m (KRW589.6b), offsetting a $59.5m (KRW81.5b) drop in insurance income caused by higher auto insurance loss ratios.

Total premium income across the sector reached $175.9625b (KRW241.0445t), a 1.4% increase YoY. 

Life insurers contributed $82.8112b (KRW113.4400t), up 0.9%, supported by a 13.1% YoY rise in protection-type and a 2.7% YoY rise in savings-type policies. 

Variable life insurance also grew 0.4% YoY, whilst retirement pensions fell 26.2% YoY.

Non-life insurers generated $93.1513b (KRW127.6045t) in premium income, a 1.9% increase YoY. 

Long-term and general insurance segments expanded 5.2% YoY and 7.4% YoY, respectively, whilst auto insurance declined 1.8% YoY and retirement pension dropped 7.2% YoY.

Total assets of domestic insurers grew 3.8% YoY to $929.4t (KRW1,273.2t). 

However, shareholders’ equity declined 15.5% YoY to $103.7b (KRW142.1t), as total liabilities rose 6.9% YoY to $825.7b (KRW1,131.2t).

($1.00 = KRW1,362.61)