South Korea's 22 life and 31 non-life insurance companies generated KRW4.097tn ($2.98bn) in preliminary net income for the first quarter of 2025, down by KRW769.9bn or 15.8% from the corresponding quarter a year earlier, the Financial Supervisory Service says in a statement.
Net income for life insurance companies shrank by KRW208.3bn or 10.9% to KRW1.696tn year on year. Increased expenses related to onerous contracts, along with the disposal of financial assets and reduced valuation gains on retained assets, led to a year-on-year decline of KRW123.0bn in insurance income and of KRW159.8bn in investment income for life insurers.
As for non-life insurance companies, net income decreased by KRW561.6bn or 19.0% to KRW2.401tn. Higher loss ratios made the non-life insurers lose KRW1.086tn in insurance income compared to the previous year. However, their investment income grew KRW418.2bn based on a decrease in bond valuation gains.
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Net Income of Insurance Companies, 1Q2025
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KRW bn
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1Q2024
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1Q2025*
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Y-o-Y change
|
|
Life insurance companies
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1,903.9
|
1,695.6
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-208.3
|
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Insurance income
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1,280.2
|
1,157.2
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-123.0
|
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Investment income
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1,172.9
|
1,013.0
|
-159.8
|
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Other incomes
|
-59.2
|
-66.4
|
-7.1
|
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Non-life insurance companies
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2,962.7
|
2,401.1
|
-561.6
|
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Insurance income
|
3,036.1
|
1,949.8
|
-1,086.3
|
|
Investment income
|
909.0
|
1,327.3
|
418.2
|
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Other incomes
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-14.3
|
-17.9
|
-3.6
|
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Total
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4,866.6
|
4,096.7
|
-769.9
|
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* preliminary figures
Source: Financial Supervisory Service
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The insurance companies’ premium income totalled KRW62.731tn in the first quarter of 2025, up by KRW4.062tn or 6.9% from the corresponding quarter a year ago.
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Premium Income of Insurance Companies, 1Q2025
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|
KRW bn
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1Q2024
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1Q2025*
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Y-o-Y change
|
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Life insurance companies
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28,039.3
|
31,112.1
|
3,072.8
|
|
Protection-type insurance
|
13,248.9
|
14,903.8
|
1,654.8
|
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Savings insurance
|
8,442.6
|
7,310.3
|
-1,132.3
|
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Variable life insurance
|
3,079.3
|
3,350.7
|
271.4
|
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Retirement pension and others
|
3,268.5
|
5,547.3
|
2,278.8
|
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Non-life insurance companies**
|
30,630.0
|
31,619.0
|
989.0
|
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Long-term insurance
|
16,788.4
|
17,903.7
|
1,115.3
|
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Auto insurance
|
5,263.1
|
5,109.7
|
-153.4
|
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General insurance
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3,997.0
|
4,174.8
|
177.8
|
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Retirement pension and others
|
4,581.5
|
4,430.8
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-150.7
|
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Total
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58,669.3
|
62,731.1
|
4,061.8
|
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* preliminary figures
** Premium income of non-life insurers was based on direct premium written
Source: Financial Supervisory Service
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