South Korean insurers’ capital reaches $200b in Q3 2025

Net earnings were $2.3b and other comprehensive income increased $4.9b over the quarter.

South Korea’s insurance companies saw their capital buffers improve in the third quarter of 2025, with the industry’s average capital adequacy ratio under the Korean Insurance Capital Standard (K-ICS) rising to 210.8% at end-September, up from 206.8% three months earlier, according to the Financial Supervisory Service.

With transitional measures applied, the K-ICS ratio for life insurers edged up 0.5 percentage point to 201.4%, whilst the ratio for non-life insurers climbed 9.5 percentage points to 224.1%.

Without transitional measures, the overall ratio stood at 196.8%, up from 192.1% in June. Life insurers posted a ratio of 183.1%, whilst non-life insurers reached 217.0%.

Available capital for the sector rose by $9.7b (₩14.1t) over the quarter to $189.6b (₩274.7t), supported by net earnings of $2.3b (₩3.3t), a $4.9b (₩7.1t) increase in other comprehensive income, and a $2.1b (₩3.0t) rise in contract service margin.

Required capital also increased, up $2.97b (₩4.3t) to $89.9b (₩130.3t), mainly due to a $4.49b (₩6.5t) rise in equity risk following a stock market rally, partly offset by a $1.52b (₩2.2t) drop in interest rate risk.

The regulator said it will continue to closely monitor insurers’ asset-liability management and loss ratios, warning that volatile interest rates and higher claims could put pressure on capital and risk profiles.

($1.00 = ₩1,444.85)