The Financial Supervisory Service said on the 30th that insurance companies last year (22 life insurers and 30 nonlife insurers) posted a net profit of 12.2172 trillion won, down 2.0673 trillion won (14.5%) from a year earlier.
Life insurers' net profit was 4.968 trillion won, down 664.7 billion won (11.8%) from a year earlier, and insurance profit worsened by 352.7 billion won due to an increase in loss-making contracts and negative variance between expected and actual results. Investment profit also fell by 125.5 billion won due to higher insurance finance costs. Nonlife insurers' net profit was 7.2492 trillion won, down 1.4026 trillion won (16.2%) from a year earlier, and insurance profit deteriorated by 2.6741 trillion won due to higher loss ratios in long-term and auto insurance. However, investment profit improved by 1.1672 trillion won on higher interest and dividends.
Insurance companies' direct premiums written last year totaled 266.6595 trillion won, up 26.6776 trillion won (11.1%) from a year earlier. Life insurers' direct premiums written were 127.5061 trillion won, up 14.0661 trillion won (12.4%) year over year, with sales rising for protection-type insurance (12.7%), variable insurance (2.8%), and retirement pensions (46.4%), while savings-type insurance fell (4.6%). Nonlife insurers' direct premiums written were 139.1533 trillion won, up 12.6115 trillion won (10.0%) from a year earlier, with gains in long-term insurance (7.0%), general insurance (5.0%), and retirement pensions (33.3%), while auto insurance declined (1.7%).
Profitability of insurers fell last year. Return on assets (ROA) was 0.94%, down 0.21 percentage points from a year earlier, and return on equity (ROE) was 7.86%, down 1.35 percentage points.
At the end of last year, insurers' total assets were 1,344.2 trillion won, up 75.2 trillion won (5.9%) from the end of the previous year, and total liabilities were 1,175.6 trillion won, up 48.9 trillion won (4.3%). Equity was 168.5 trillion won, up 26.5 trillion won (18.5%).