SoKor Insurance Firms' Net Profit Jumps 45%

Insurance companies in South Korea saw their net profit jump 45.5% from a year earlier on increased sales, recent data showed, Yonhap News Agency reported.

The on-year increase was partly attributed to new accounting regulations that allowed insurance firms to include liability reserves as part of their earnings. I Photo: 라이나생명보험 

The combined net profit of 22 life insurers and 31 non-life insurance companies here came to 13.35 trillion won ($9.96 billion) last year, according to the preliminary data from the Financial Supervisory Service (FSS).

The financial regulator partly attributed the on-year increase to new accounting regulations that allowed insurance firms to include liability reserves as part of their earnings.

The net income of life insurance firms surged 37.6% on-year to 5.09 trillion won in 2023, with that of non-life insurers soaring 50.9% to 8.26 trillion won.

The insurance companies' premium income slipped 6% on-year to 237.6 trillion won, but their return on assets gained 0.4 percentage points to 1.09% while their return on equity dipped 0.2 percentage points to 8.02%.

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