While insurers' household loans shrank, the arrears rate edged up slightly.
The Financial Supervisory Service said on the 25th that as of the end of Sep., insurers' loan receivables stood at 261.4 trillion won, down 4 trillion won from the end of Jun.
During the same period, household loans fell 1.1 trillion won to 133.3 trillion won, and loans to corporations were tallied at 128 trillion won, down 3 trillion won. Within household loans, policy loans came to 70 trillion won, down 300 billion won, and mortgage loan balances were 51.9 trillion won, down 400 billion won.
Insurers' loan receivables arrears rate was 0.81% at the end of Sep., down 0.02 percentage point from the end of Jun. Loans to corporations fell 0.05 percentage point over the same period to 0.79%, but household loans rose 0.05 percentage point to 0.85%.
The nonperforming loan ratio at insurers was 0.98% at the end of Sep., down 0.02 percentage point from the end of Jun. Loans to corporations fell 0.07 percentage point to 1.13%, but household loans rose 0.06 percentage point to 0.67%.
The Financial Supervisory Service (FSS) said, "Although soundness indicators improved slightly, there remains concern that the soundness indicators of loan receivables could worsen due to delayed economic recovery," adding, "We plan to guide insurers to strengthen loss-absorbing capacity and tighten soundness management."