Blame premium income from savings-type insurance products which plunged by $2.5b.
The net income of Korean life insurance companies dropped 21.7% YoY to $316.9m (KRW341.6b) in Q1, according to the Financial Supervisory Service.
The decline came as premiums from savings-type insurance products plunged by a whopping $2.5b (KRW2.7t) to hedge against stricter capital requirements. Sales growth of protection type insurance products was also slower.
Premium income for the first quarter of 2018 dipped 8.7% YoY from $26.55b (KRW28.6014t) to $24.24b (KRW26.1154t).
The latest figures represent the first time in seven years that premium income from protection-type insurance was greater than from savings-type insurance.
Protection type insurance accounted for over a third (39.4%) of income followed by savings-type insurance (33%), variable insurance (19.3%) and retirement pension and insurance (8.3%).
The return on assets (ROA) also dipped from 0.8% to 0.59% in Q1 along with return on equity which fell from 9.41% to 7.03%.
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