South Korean insurers 2021 preliminary income balloons to $6.8b
This is a 36.2% growth compared to the previous year.
South Korean insurance companies recorded a preliminary net income of $6.8b (Kr₩8.2667t) for 2021, up 36.2% from the same period last year according to data released by the country’s financial regulator.
The Financial Supervisory Service data revealed that net income for life insurance companies grew by 14.2% year-on-year (YoY) to $3.2b in 2021. Insurance income shrank by $570m compared to a year ago because of a drop in sales of savings-type insurance. Investment income, however, jumped $1.3b based on greater interest revenues and dividend income.
Meanwhile, the non-life segment net income increased by 65.2% to $3.5b in 2021. The increase is attributed to decline in expense ratios of long-term insurance and loss ratios of auto insurance due to the COVID-19 pandemic, which resulted in an increase in insurance income by $1.5b compared to the previous year. Additionally, investment income grew by $330m YoY.
Total premiums income of all insurance segments in 2021 totaled $180b, an increase of 1.4% compared to the previous year.
The FSS surmised that overall profitability has improved in 2021 compared to a year ago, with return on assets increasing to 0.62%, and return on equity increasing to 5.96% YoY.
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