The net income of 22 life insurance companies and 32 non-life insurance companies last year was 14.144 trillion won, an increase of 628.2 billion won (4.6%) from the previous year. The life insurance companies recorded 5.6374 trillion won, an increase of 7.1% (373.6 billion won), while the non-life insurance companies reported 8.5066 trillion won, an increase of 3.1% (254.6 billion won).
The Financial Supervisory Service disclosed the provisional results of insurance companies' management performance for last year on the 24th. The insurance profit of life insurance companies was 4.2625 trillion won, a decrease of 15.7% (796.4 billion won) from the previous year, but investment profits increased by 7.1% (1.3498 trillion won) to 3.0248 trillion won due to increases in interest and dividends.
On the other hand, the non-life insurance companies recorded an insurance profit of 8.2466 trillion won, down 1% (81.5 billion won) due to rising automobile insurance loss ratios, while investment profits improved by 22.1% (589.6 billion won) to 3.2577 trillion won.
Last year, the total premium income of all insurance companies was 241.445 trillion won, an increase of 1.4% from the previous year (3.4353 trillion won). Life insurance companies were recorded at 113.44 trillion won, an increase of 0.9% (10.325 trillion won). While protection insurance increased by 13.1% (63.878 trillion won), savings insurance increased by 2.7% (7.472 trillion won), and variable insurance increased by 0.4% (506 billion won), retirement pensions decreased by 26.2% (61.531 trillion won) to 17.343 trillion won.
During the same period, non-life insurance companies showed an increase of 1.9% (24.028 trillion won) to 127.6045 trillion won. Long-term insurance increased by 5.2% (34.744 trillion won) and general insurance increased by 7.4% (10.289 trillion won), while automobile insurance decreased by 1.8% (37.96 billion won), and retirement pensions decreased by 7.2% (17.209 trillion won).
The return on assets (ROA) for all insurance companies was 1.13%, which is an increase of 0.03 percentage points from the previous year. The return on equity (ROE) increased by 1.08 percentage points to 9.12%.
Last year, the total assets of insurance companies were 1,273.2 trillion won, an increase of 3.85 (47 trillion won) compared to the end of the previous year. Life insurance companies showed an increase of 2.6% to 905.5 trillion won, while non-life insurance companies increased by 7% to 367.7 trillion won.
On the other hand, total liabilities are 1,131.2 trillion won. This is an increase of 6.9% (73 trillion won) from the end of the previous year. Life insurance companies recorded an increase of 5.9% to 823.5 trillion won, while non-life insurance companies increased by 9.7% to 307.7 trillion won.
The total equity of all insurance companies was 142.1 trillion won, a decrease of 15.5% (26 trillion won) compared to the end of the previous year. This is due to liabilities increasing more significantly than total assets. Life insurance companies accounted for 82.1 trillion won, and non-life insurance companies accounted for around 60 trillion won.
The FSS noted, "Last year's net income of insurance companies increased compared to the previous year due to improvements in interest and dividends from the increase in operating assets despite the increase in insurance payout payments." It also stated that "the decrease in equity was due to the increase in insurance liabilities due to falling interest rates and adjustments to discount rates," adding, "There is concern that uncertainties in financial markets, such as stock prices, interest rates, and exchange rates, may expand in the future," urging that "insurance companies need to closely manage financial soundness."