As the KOSPI index topped 6,300 and the market climbed sharply, eight out of 10 domestic equity funds within variable life insurance posted more than 100% returns over the past year. Domestic funds outperformed overseas equity funds, most of which invest in the U.S. stock market.
According to the Korea Life Insurance Association on the 1st, the simple average one-year return for 195 domestic equity funds offered within variable life insurance policies sold by 22 life insurers was 121.09% as of the 25th. Of the 195, 152 recorded one-year returns of 100% or higher. In eight out of 10 funds, principal invested doubled or more in a year. Sixteen funds returned 90%–100%, and 20 returned 80%–90%.
Among funds with net worth of 10 billion won or more, MetLife's Index Equity (45.3 billion won) had the highest return at 158.05%. Samsung Life Insurance's K-Index Equity, the largest by net assets at 2.4422 trillion won, returned 156.86%, ranking in the top five.
The lowest return was KDB Life's SOC Equity (63.4 billion won) at 8.6%. It was followed by KDB Life's Value Equity Mixed Growth (6.3 billion won) at 65.86%, Heungkuk Life variable universal mid- and small-cap equity (1 billion won) at 66.82%, and DB Life's Samsung Group Equity Mixed (25.5 billion won) at 72.8%.
The simple average one-year return for 267 overseas equity funds within variable life insurance was 19.6%, weaker than domestic equity funds. Even the top-performing fund did not exceed a 100% return, and Mirae Asset Life Insurance's U.S. Equity (378.5 billion won) recorded -2.72%, Global Growth Equity (400.4 billion won) -2.81%, and Global Consumer Equity (96.8 billion won) -5.85%.
Variable life insurance is a product that invests premiums paid by policyholders into funds. Future death benefits or annuity amounts vary depending on investment returns. Funds are broadly divided into overseas and domestic investments and further classified as equity, bond, or mixed types. An insurance industry official said, "As the domestic stock market trends higher, interest in variable life insurance is also rising."