South Korea insurers’ $3b profit leaves non-life firms behind

The 30 non-life players reported $1.4b after a year-on-year decline.

South Korea’s insurance industry first quarter 2206 (Q1 2026) net income rose 9.5% year-on-year (YoY) to $2.9b (KRW4.48t).

The higher combined earnings of 52 insurers, including 22 life insurers and 30 non-life insurers, were driven by stronger investment income at life insurers, according to preliminary data from the Financial Supervisory Service (FSS).

Life insurers posted net income of $1.5b (KRW2.38t), up 40.6% YoY.

The increase was mainly driven by higher investment income, which rose $0.3b (KRW457.7b) due to interest and dividend income as well as gains from the disposal of one-off assets.

Insurance income, however, fell by $0.06b (KRW86.8b) as a result of adverse experience losses.

In contrast, non-life insurers reported net income of $1.4b (KRW2.11t), down 12.3% YoY.

Higher interest rates reduced the value of bond portfolios, leading to a $0.15b (KRW229.4b) decline in investment income.
Insurance income at non-life insurers increased slightly by $0.003b (KRW5.0b).

Total premium income across the industry increased 6.0% YoY to $43.2b (KRW66.49t). Life insurers generated premium income of $21.6b (KRW33.26t), up 6.9% YoY.

Protection-type insurance premiums rose 11.3% YoY, savings insurance increased 5.3% YoY, and retirement pensions grew 5.7% YoY.

Variable life insurance premiums fell 7.2% YoY during the period.

Premium income at non-life insurers rose 5.1% YoY to $21.6b (KRW33.23t). General insurance premiums increased 9.8% YoY, whilst long-term insurance premiums grew 6.2% YoY.

Motor insurance premiums rose 3.0% YoY, although retirement pension-related premiums declined 1.5% YoY.

The sector’s return on assets (ROA) improved to 1.33% in the first quarter from 1.27% a year earlier. Return on equity (ROE), however, fell to 10.03% from 11.92%.

The FSS said uncertainty surrounding interest rates, stock prices and exchange rates could increase both domestically and overseas.

The regulator said it would continue monitoring risks that could affect insurers’ earnings and financial stability and encourage companies to respond proactively if risks materialise.

($1.00 = KRW1,528.18)