S. Korean insurers see income surge 46% YoY in FY’23

Total premium income was down 6.0% year-on-year.

The preliminary net income of 22 life and 31 non-life insurers in South Korea all saw a 45.5% year-on-year (YoY)  jump to $9.7b (KRW13.4t) in 2023, data from the Financial Supervisory Service showed.

The net income for life insurers rose by 37.6% YoY, reaching $3.7b (KRW5.1t), whilst non-life insurers saw their net income grow by 50.9%, totalling $6.0b (KRW8.3t). 

This growth was attributed to the implementation of IFRS 9 and IFRS 17 and increased sales in protection-type insurance for life and long-term insurance for nonlife.

Total premium income for 2023 amounted to $170b (KRW237.6t), showing a decrease of 6.0% from the previous year. 

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Premium income for life insurers decreased by 15.3%, mainly due to declines in savings-type and retirement pension insurance. Nonlife insurers, however, saw an increase in premium income by 4.2%, with growth observed in long-term insurance and auto insurance.

Overall profitability improved, with return on assets (ROA) increasing by 0.40 percentage points to 1.09% YoY, whilst return on equity (ROE) declined by 0.20 percentage points to 8.02%. 

At the end of 2023, the aggregate assets of insurance companies decreased by 6.5% compared to the previous year, whilst shareholders' equity increased by 87.4%. Total liabilities decreased by $120b (KRW163.3t) YoY, mainly due to changes in the measurement of insurance liabilities at market value.

($1.00 = KRW1,385.34)