INSURANCE | Staff Reporter, Korea

South Korean insurers see 'healthy' Q3 financial results

Risk-based capital ratio of local insurers gained 7.5pp to 283.9%.

South Korean insurers posted improvements in their Q3 financial results, as more profits and share price gains bolstered capital, according to a Yonhap report.

The risk-based capital (RBC) ratio of local insurance firms stood at 283.9% at end-September, up 7.5 pp from three months earlier, according to the data from the Financial Supervisory Service (FSS). RBC ratio rose for the second straight quarter in the July-September period on the back of greater earnings and increased share prices, it added.

Local insurers are required to maintain the ratio at 100% or above, whilst the FSS advises insurance firms to have ratios of 150% or higher.

The RBC ratio for life insurance companies rose 10.8 pp QoQ to 303.5%, with the figure for non-life insurers climbing 1.2 pp to 247.7%.

Insurance firms in the country are required to gradually increase their capital reserves to better cope with tougher global accounting standards for insurers, set to go into effect in 2022.

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