Kyobo Life reports $6b gross premiums in H1 2024

However, investment profits dropped 41.4% QoQ.

Kyobo Life’s first half of 2024 (H1 2024) gross premiums fell by 5.1% year-on-year (YoY), reaching US$5.55b (KRW7.4t), down from US$5.85b (KRW7.8t) in H1 2023. The decline was primarily due to reduced savings policy premiums.

Despite this, the company's insurance profit improved, driven by a Contractual Service Margin (CSM) release of approximately US$168.45m (KRW224.6b), a 12.1% YoY increase, boosting insurance profit, according to CreditSights.

However, investment profits dropped 41.4% quarter-on-quarter and 1.2% YoY in the second quarter.

For H1 2024, investment profit decreased by 31.1% compared to the same period in 2023, primarily due to an 8.5% rise in investment expenses.

This decline in investment results offset the gains in insurance profit, resulting in an 11.1% YoY drop in operating income and a 7.8% decrease in net profit.

Kyobo Life's solvency ratio, last reported in March 2024, stood at 173%, close to Hanwha Life's 174%.

The ratio is expected to decline in the second quarter of 2024 due to regulatory changes in discounting rates.

The company issued a US$525.00m (KRW700b) subordinated bond in August 2024 to strengthen capital under the new K-ICS solvency system.

Kyobo Securities, 85% owned by Kyobo Life, posted a 32.8% increase in net profit to US$4.65m (KRW6.2b), supported by stable net commission income and the absence of significant impairments seen in H1 2023.

However, challenges remain for the securities brokerage business, including reduced balances and custody fees following tighter CFD regulations and ongoing weakness in the real estate market.

(US$1.00 = KRW1,329.09)