The financial status of South Korean insurance companies dipped in the fourth quarter of last year, as interest rate increases and dividend payouts reduced their available capital, according to the Financial Supervisory Service (FSS).
The risk-based capital (RBC) ratio of 56 life and non-life insurers averaged 257.8% in the October-December quarter, down by 6.3 percentage points from the previous quarter, reports Yonhap News Agency citing the FSS.
Life insurers' RBC ratio inched down 3.5 percentage points on-quarter to 267.6% in the fourth quarter of last year, and that for non-life institutions slipped 11.7% percentage points to 238.5%, the latest data show.
On a year-to-year basis, the RBC ratio for 4Q2017 marked a 21.3 percentage point increase, according to the FSS.
Local insurers are required to maintain a minimum RBC ratio of 100%.