South Korean insurers bag $80b in premiums for H1 2024

Net income of all insurers for H1 2024 amounted to $6.49b.

The total premium income of South Korean insurers for the first half of 2024 (H1 2024) reached $79.83b (KRW115.7t), marking a year-on-year increase of $3.04b (KRW4.4t), or 3.9%, Korean Re reported.

This figure includes 22 life insurers and 31 non-life insurers.

Life insurers' premium income totalled $37.61b (KRW54.5t), up by $1.24b (KRW1.8t), or 3.5% YoY, from the same period in 2023.

Growth was driven by increased sales of protection-type insurance (+13.2% YoY) and savings-type insurance (+0.7% YoY), which offset declines in variable life insurance (-2.2% YoY) and retirement annuities (-16.2% YoY).

Non-life insurers generated $42.30b (KRW61.3t) in total direct premiums, rising by $1.79b (KRW2.6t), or 4.3% YoY, compared to the HQ 2024.

Long-term insurance (+5.2% YoY), general property and casualty insurance (+8.7% YoY), and retirement annuities (+3.9% YoY) led the growth, despite a 1.2% YoY decline in motor insurance premiums.

The net income of all insurers for H1 2024 amounted to $6.49b (KRW9.4t), up by $174.99m (KRW253.6b), or 2.8% YoY.

Life insurers, however, reported a net income decline of $257.13m (KRW374.1b) (-9.4% YoY) to $2.48b (KRW3.6t), due to weaker investment income caused by lower valuation gains on financial assets.

This was partially offset by improved underwriting profits from higher insurance product sales.

Non-life insurers posted a net income of $4.00b (KRW5.8t), an increase of $432.11m (KRW627.7b), or 12.2% YoY.

Growth was attributed to improved insurance profits from increased product sales and a reduction in the liability for incurred claims (LIC), despite weaker investment income. 

The reduction in LIC followed amendments to the enforcement rules in December 2023, which clarified technical reserve calculation standards.

($1.00 = KRW1,451.67)