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.
Do you know more about this story? Contact us anonymously through this link.