South Korean Insurers’ Overseas Operations Turn Profitable
The overseas businesses of South Korea’s domestic insurance companies turned a profit in 2024, according to a statement released by the Financial Supervisory Service (FSS). Their combined net income turned around by $173.4m from a loss of $14.3m in 2023 to $159.1m.
Financial Performance Highlights
The combined net income from the overseas operations of life insurers grew by $2.2m or 3.5% to $64.0m during the cited period, based on higher insurance sales. In contrast, the net income of non-life insurance companies jumped by $171.2m to $95.1m year on year, largely due to the base effect of natural catastrophes in the previous year.
As of year-end 2024, four life insurance and seven non-life insurance companies operated 44 overseas businesses in 11 countries. The FSS noted that local conditions, such as economic situations and climate changes, could increase uncertainty about overseas operations. Therefore, the regulator will closely monitor the financial stability of insurers’ overseas businesses and developments in newly established operations.
The FSS data showed that the assets of overseas operations reached $7.34 billion, while shareholders’ equity stood at $3.37 billion as of year-end 2024. The 2024 figures are preliminary and subject to change.
