South Korean insurers Q1 2025 net income contracts 15.8% YoY

Both its life and general insurance sectors recorded declines.

South Korean insurance companies posted a combined preliminary net income of $2.99b (₩4.0967 trillion) for the first quarter of 2025 (Q1 2025), marking a 15.8% year-on-year (YoY) decline, data from the Financial Supervisory Service.

Life insurers recorded $1.24b (₩1.6956 trillion) in net income, down 10.9% YoY. 

The decline was driven by higher expenses related to onerous contracts, lower valuation gains on retained assets, and reduced income from financial asset disposals, leading to $89.8m (₩123.0b) less in insurance income and $116.7m (₩159.8b) less in investment income.

Non-life insurers saw a 19.0% YoY decline in net income to $1.75b (₩2.4011t), primarily due to higher loss ratios which caused a $793.0m (₩1.0863t) decrease in insurance income.

This was partly offset by a $305.3m (₩418.2b) increase in investment income due to improved bond valuations.

Total premium income for the industry rose 6.9% YoY to $45.79b (₩62.7311t) in Q1 2025. 

Life insurers contributed $22.71b (₩31.1121t), up 11.0% YoY, supported by a 12.5% YoY increase in protection-type plans, an 8.8% YoY rise in variable insurance, and a 69.7% YoY surge in retirement pension. 

However, savings insurance declined 13.4% YoY.

Non-life insurers reported $23.08b (₩31.6190t) in premium income, up 3.2% YoY. 

Long-term insurance grew 6.6% and general insurance rose 4.4%, whilst auto insurance and retirement pension declined 2.9% and 3.3%, respectively.

($1.00 = ₩1,364.44)