May 2019

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South Korea: Several small general insurers see huge profit declines

Source: Asia Insurance Review | Mar 2019

Small non-life insurers are suffering lower earnings due to a worsening business environment and cutthroat competition, reported The Korea Times.
For instance, Meritz Fire & Marine Insurance posted operating profits of KRW312.7bn ($278.2m) last year, down by 39.1%, according to data from the Financial Supervisory Service. The insurer’s net profit decreased too by 39% year-on-year to KRW234.7bn.
Hanwha General Insurance saw KRW110.3bn in operating profits last year, down by 44.2% from 2017. Its net profit also suffered a 44.7% plunge year-on-year drop to KRW81.6bn.
Heungkuk Fire & Marine suffered a 41.4% fall in operating profits to KRW62.8bn. Its net profit dived by 47% to KRW45.2bn.
There are more than 15 non-life insurers in Korea, said an industry insider who felt that the market was saturated. Price cutting among them has led to a losing game for everyone, he said.
Large general insurers, however, managed to post increased earnings. Industry leader.
Samsung Fire & Marine posted KRW1.45tn in operating profits for 2018, an increase of 15.7% over 2017. A 
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