South Korea: Insurance market reports lower net results in 1Q2025 despite higher premium income
Source: Asia Insurance Review | Jul 2025
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.
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. A