South Korea insurance net income skyrockets to KRW7.63t in 2021

Insurance income soared 37.3% for the first nine months of the year.

South Korean insurance companies’ preliminary net income soared to KRW7.63t ($6.4b) for the first nine months of 2021, up 37.3% from the same period last year.

According to data released by the Financial Supervisory Service, net income for life insurance companies grew 17.8% year on year to KRW3.69t whilst nonlife insurance companies’ net income increased 62.6% to KRW3.93t in the January-to-September period. .

The FSS said that the insurance income for life improved compared to a year ago as business expenses decreased and the burden of guarantee reserves came to be eased. 

“By contrast, investment income decreased mainly because interest revenues and gains on disposition of financial assets shrank from a year earlier. Meanwhile, during the period, loss ratios of auto and long-term insurances declined in the wake of the COVID-19 as well as that of general insurance fell because the number of accident cases incurring large losses fell. This contributed to generating greater investment income,” the FSS said

Insurance companies’ premium income for the year to September totaled KRW155.6t, up KRW3.2t or 2.1% from the same period a year earlier. Of the total, KRW82.24t came from life insurance companies, whose sales of variable life insurance and protection-type insurance increased by 9.6% and 2.4%, respectively, from a year ago. By contrast, retirement pension decreased 5.4% and savings-type insurance 3.2% as well from the same period a year ago.

As for nonlife insurance companies, premium income came in at KRW73.38t in the January-to-September period of 2021, up KRW2.49t or 3.5% from a year ago. Sales of long-term insurance grew 5.3% as well as general insurance sales expanded by 8.9% YoY. In addition, auto insurance jumped 3.8% too. However, the retirement pension declined 15.2% from a year ago.

FSS said overall profitability has improved compared to a year ago with return on assets (ROA) rising 0.18%p to 0.77%. In addition, return on equity (ROE) increased 1.88%p to 7.33% YoY. 

“As of end-September 2021, aggregate assets of the insurance companies came in at KRW1,338.3 trillion, up KRW16.9 trillion or 1.3% from the end of December 2020. The growth was attributable to an increase in assets under management. However, shareholders’ equity decreased KRW8.9 trillion or 6.2% to KRW134.4 trillion as higher interest rates made a dent in valuation gains of loans receivables,” the FSS added.

Join Insurance Asia community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

It plans to focus on three initiatives to meet customer expectations.
This is part of the industry’s support for the vaccination and booster drive.
The government has also opened its hotel isolation facilities for tourists.
Growing sales of electric vehicles supported the recovery of premiums in 2021.
AIA now has 24.99% stake in the life insurance firm.
Customers of the airline will be offered a range of insurance travel products.
The majority of the complaints were concerned with treatments not being covered.
He will also head the corporate risk and brokerage.
The move comes amidst further increase in competition in the market.
The regulator has appointed managers to take control of the firm.
Insurance Asia will be back on 10 January 2022. 
The newest product calculates biological age to give bonus insurance coverage.
The app targets employees of Japanese firms operating in the country.
The insurance package will be exclusive for Bloom members.
It also enlisted Milliman to implement new rates for motor products.