Last year, major domestic non-life insurers saw their net profits drop by double digits, driven by a KRW400bn ($278m) deficit in auto insurance.
The combined net profit of the five leading insurers—Meritz Fire & Marine Insurance, Samsung Fire & Marine Insurance, Hyundai Marine & Fire Insurance, KB Insurance, and DB Insurance—fell 11.5% year-on-year to KRW7.43tn, reported Yonhap News.
Operating profit declined by 8.9% to KRW9.04tn, while insurance profit fell sharply by 28.6% to KRW5.04tn.
The significant downturn in auto insurance was a major factor behind this weak performance. Combined auto insurance profits among the five major insurers swung from a KRW283.7bn surplus in 2024 to a KRW458.5bn deficit last year.
Samsung Fire & Marine Insurance, Hyundai Marine & Fire Insurance, KB Insurance and DB Insurance all posted losses, with Meritz Fire & Marine Insurance seeing its deficit deepen.
Profits from long-term insurance, a key contributor to overall insurance results, dropped 18.1% to KRW5.13tn. This decline was largely attributed to rising medical expenses following the resolution of the medical strike and a widening gap between expected and actual insurance claims.
On the investment side, gains improved by 39.3% to KRW4.12tn, partially offsetting the overall decline.
In terms of net profit rankings, Samsung Fire & Marine Insurance retained its leading position with KRW2.02tn. Meritz Fire & Marine Insurance climbed to second place, reporting KRW1.69tn, a slight 1.7% drop from the previous year. DB Insurance slipped to third, with net profit down 13.4% to KRW1.54tn, as the impact of auto insurance losses hit harder given its larger market share. Hyundai Marine & Fire Insurance fell to fifth place, experiencing a steep 45.6% decline in net profit to KRW561.1bn.