South Korea's capital adequacy rises to 232.2%

This was an increase of 8.1 percentage points from three months prior.

The capital adequacy ratios of South Korea’s domestic insurance companies under K-ICS, including transitional measures, were 232.2% at the end of December 2023.

This was an increase of 8.1 percentage points from 224.1% three months earlier. 

The ratio for life insurance companies rose by 8.4 percentage points to 232.8%, whilst nonlife insurers' ratio increased by 7.6 percentage points to 231.4%. 

Without transitional measures, the ratios were 214.0% at year-end 2023, up 12.2 percentage points from 201.8%. 

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Life insurers' ratios increased by 12.8 percentage points to 208.7%, and nonlife insurers' ratios rose by 11.3 percentage points to 221.9%.

Available capital under K-ICS was KRW261.6t at year-end 2023, a decrease of KRW 0.1t from three months earlier. 

Year-end dividend payments of KRW3.5t and a KRW6.4t decrease in accumulated other comprehensive income contributed to this reduction. 

Required capital decreased by KRW4.1t to KRW112.t, largely due to a KRW13.0t reduction in life/long-term insurance risk, as improved mass-lapse risk calculations reduced lapse risk by KRW21.5t.