South Korea insurance industry profits fell by 21% in Q1

Net profits for all 53 major insurers totaled $2.45b.

South Korea’s insurance firms combined net profit fell by 21% in the first quarter (Q1) of the year, according to statistics by the country’s regulator.

Data compiled by the Financial Supervisory Service (FSS) revealed that the net profit of 53 major insurers totaled $2.45b in the January to March period.

The steep drop was attributed to a fall in Q1 net profit of 23 life insurers which contracted by 45.2% to $1.1b. The FSS attributed the drop to a fall in savings-type insurance sales and asset values amids rising market rates.

In conttrast, South Korea’s non-life insurance industry saw its Q1 net profit jump of 25.4% to $1.3b. The robust earnings of non-life insurance firms were because of the country’s strict COVID-19 measures which discoruage socail gatherings and in turn lowered the loss rate.

Their combined premium income contracted 3.1% to $41b during the three-month period, data showed.