South Korean insurers have reported a significant increase in profits for 2024, with a combined net income of $10.32 billion, representing a 4.6% rise from the previous year. The Financial Supervisory Service released data showing that both life and non-life insurance companies contributed to this growth, primarily due to increased investment income.
The life insurance sector reported a net income of $4.12 billion, marking a 7.1% year-on-year increase. Despite a decline in insurance income resulting from stricter incurred but not reported (IBNR) reserve standards, investment income surged by $985.3 million due to higher interest and dividend earnings.
Non-life insurers also performed well, with a net income of $6.21 billion, up 3.1% year-on-year. Their investment income grew by $430.5 million, offsetting a slight drop in insurance income caused by higher auto insurance loss ratios.
The total premium income across the insurance sector reached $175.96 billion, a 1.4% increase from the previous year. Life insurers saw a 0.9% rise in premium income to $82.81 billion, supported by growth in protection-type and savings-type policies. Non-life insurers generated $93.15 billion in premium income, a 1.9% increase, with growth in long-term and general insurance segments.
The total assets of domestic insurers grew 3.8% to $929.4 billion, while shareholders’ equity declined 15.5% to $103.7 billion due to a 6.9% rise in total liabilities.
