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, ‘Despite a decrease in investment income in the first half of the year, domestic insurance companies in South Korea posted higher net profits in the first half of this year compared to the same period last year. While the performance of life insurance companies was lackluster, non-life insurance companies saw an increase in insurance profit due to expansion of insurance product sales and reduction in claims.’,
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, ‘According to the “Interim Management Performance of Insurance Companies in the First Half of 2024” released by the Financial Supervisory Service on the 2nd, the net profit of 53 insurance companies (22 life insurance companies, 31 non-life insurance companies) was 9.3663 trillion won, an increase of 2.8% (253.6 billion won) from the same period last year.’,
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, ‘Looking at the industry sectors, the net profit of life insurance companies decreased by 9.4% (374.1 billion won) to 3.5941 trillion won, while the net profit of non-life insurance companies increased by 12.2% (627.7 billion won) to 5.7722 trillion won. The clear standardization of reserve calculation by the Financial Supervisory Service at the end of last year led to an increase in insurance operating income.’,
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, ‘Both life and non-life insurance companies experienced a deterioration in investment income due to decreases in financial asset valuation gains. This was influenced by factors such as bond price declines due to prolonged high interest rates. The investment income of life insurance companies decreased by 24.2% compared to the same period last year, while the investment income of non-life insurance companies decreased by 1.0%.’,
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, ‘The return on assets (ROA) of insurance companies in the first half of the year was 1.52%, a decrease of 0.04 percentage points from the first half of last year, but the return on equity (ROE) was 11.79%, an increase of 0.72 percentage points. Total assets and total liabilities increased by 1.3% (162 trillion won) and 3.0% (315 trillion won), respectively, compared to the end of last year, but equity decreased by 9.2% (153 trillion won) during this period.’,
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, ‘The Financial Supervisory Service stated, “In preparation for increased uncertainties in domestic and international financial markets, potential losses in domestic real estate project financing (PF), and overseas commercial real estate, insurance companies need to manage financial stability stably.” They also mentioned that they plan to rigorously perform continuous monitoring by thoroughly analyzing financial stability risks associated with insurance companies’ operational, investment, and financial activities.’
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