Kyobo Life outlook stays stable with solid capital and profitability

Moody’s expects profitability to remain stable over the next 12 to 18 months.

Kyobo Life Insurance’s outlook remains stable, supported by its profitability, a solid market position, and good capitalisation, Moody’s Ratings said.

Yet, the ratings agency also warned of elevated asset risk and uncertainty from its holding company transition.

Kyobo Life’s return on capital rose to 4.5% in 2024 from 4.0% in 2023, driven by improved underwriting. 

Moody’s expects profitability to remain stable over the next 12 to 18 months. 

However, the insurer’s adjusted high-risk asset ratio increased to 176.6% at end-2024 from 131.0% a year earlier due to a decline in shareholders’ equity. 

Exposure to domestic project financing and overseas real estate remains a concern.

The insurer’s K-ICS solvency ratio dropped to 164.2% from 193.8%, reflecting stricter regulations and lower interest rates. 

Despite this, Moody’s considers capitalisation solid and expects the ratio to remain in the 160% to 170% range. 

Financial leverage rose to 19.5% in 2024 from 10.3%, following a capital securities issuance, and is projected to stay within 20% to 25%.