Capital adequacy ratio of S. Korean insurers increased end-September ‘24

When transitional measures were excluded, the ratio stood at 202.7%.

The capital adequacy ratio of South Korean domestic insurance companies under the Korean Insurance Capital Standard (K-ICS) reached 218.3% at the end of September 2024, marking a 1.0 percentage point (p.p.) increase from 217.3% three months earlier. 

When transitional measures were excluded, the ratio stood at 202.7%, up 1.2 p.p. from the previous quarter, data from the Financial Supervisory Service showed.

Life insurers saw their K-ICS ratio decline by 0.9 p.p. to 211.7%, whilst non-life insurers experienced a significant 3.1 p.p. increase to 227.1%. 

Without transitional measures, the K-ICS ratio for life insurers fell by 0.5 p.p. to 191.2%, whereas non-life insurers saw a similar 3.1 p.p. increase, reaching 218.7%.  

Available capital under K-ICS was reported at KRW258.9t, a decline of KRW1.5t compared to the previous quarter.