At the end of last year, the loan balance of insurance companies increased, and the household loan arrears rate also rose.
According to the 'status of loans receivable from insurance companies at the end of December 2024' announced by the Financial Supervisory Service on the 30th, the total loan receivable balance of insurance companies was 269.6 trillion won, an increase of 2.7 trillion won from the end of the previous quarter.
The household loan balance was 135.7 trillion won, an increase of 1.3 trillion won, while corporate loans rose to 133.8 trillion won, an increase of 1.4 trillion won.
At the end of last year, the arrears rate for loans receivable from insurance companies was 0.61%, down 0.01 percentage points from the end of the previous quarter.
Among these, the household loan arrears rate rose to 0.75%, up 0.07 percentage points from the end of the previous quarter, while the corporate loan arrears rate decreased to 0.55%, down 0.04 percentage points.
The ratio of non-performing loans (substandard loans) for insurance companies was 0.64%, down 0.07 percentage points from the end of the previous quarter.
The ratio of non-performing loans for household loans was 0.54%, up 0.05 percentage points from the end of the previous quarter, while the ratio for corporate loans fell to 0.68%, down 0.13 percentage points from the end of the previous quarter.
The FSS noted, "While monitoring the health indicators of insurance company loans, such as the arrears rate, we will continue to enhance loss absorption capacity through the adequate accumulation of loan loss reserves (including provisions) and encourage the early normalization of non-performing assets."