Last year, the number of overseas branches of domestic insurers totaled 46, up two from a year earlier. Net income at overseas branches also came to $197 million, up $37.9 million from the previous year.
According to the Financial Supervisory Service on the 7th, as of the end of last year, 12 domestic insurance companies (four life insurance companies and eight non-life insurance companies) were operating a total of 46 overseas branches in 11 countries.
By region, Asia had the most with 28, including seven in Vietnam, six in Indonesia, and four in China. The United States had 14, the United Kingdom had three, and Switzerland had one. By industry, insurance accounted for 33 (four in life insurance, 24 in non-life insurance, and five in insurance brokerage and loss adjustment, etc.), the most among sectors, while other sectors such as financial investment accounted for 13.
Last year, life insurers' overseas branches posted a net increase of one. Hanwha Life Insurance acquired the Indonesian bank "Bank National Nobu" and the U.S. securities firm "Velocity Clearing," leading to an increase in newly consolidated branches. Meanwhile, Hanwha Life Insurance's Indonesian subsidiary sold the local non-life insurer "Lippo General Insurance" to Hanwha General Insurance, resulting in the exclusion of some branches. Non-life insurers' overseas branches also increased by one.
Life insurers' overseas branches recorded net income of $109.3 million, up $45.3 million from a year earlier. The performance of newly consolidated overseas branches was reflected. However, excluding the performance of newly consolidated and divested branches, existing overseas branches' net income decreased by $13.5 million. Non-life insurers' overseas branches posted net income of $87.7 million, down $7.4 million from the previous year. The Financial Supervisory Service (FSS) analyzed major causes as natural disasters in Southeast Asia, including the Myanmar earthquake and Thailand floods.
The Financial Supervisory Service (FSS) said, "Uncertainty in the business environment of overseas branches is growing due to volatility in global financial markets amid instability in the Middle East and the expansion of catastrophe risks stemming from climate change," and added, "We plan to closely monitor the management status and financial soundness of overseas branches and guide insurers to strengthen risk management."