As of the end of March, insurers' loan receivables shrank by more than 1 trillion won, but the nonperforming loan ratio rose. Insurers' household loans outstanding and arrears both increased.
According to the Financial Supervisory Service on the 27th, insurers' outstanding loan balance stood at 264.1 trillion won at the end of March, down 1.1 trillion won from the end of last year.
During the period, household loans outstanding came to 134.5 trillion won, up 500 billion won. The increase was driven by a 600 billion won rise in policy loans. In contrast, corporate loans outstanding fell by 1.7 trillion won to 129.5 trillion won.
At the end of Mar., insurers' loan receivables arrears ratio was 0.82%, down 0.02 percentage point (p) from the end of last year. The household loans arrears ratio rose 0.03 p to 0.87%, while the corporate loans arrears ratio fell 0.03 p to 0.8%.
By contrast, over the same period, insurers' nonperforming loan (substandard or below) ratio rose 0.1 p to 1.13%. The household loans nonperforming loan ratio rose 0.01 p to 0.68%, while corporate loans climbed 0.14 p to 1.35%.
The Financial Supervisory Service (FSS) said, "With external uncertainties such as the Middle East situation expanding, the high interest rate stance is continuing, and the recovery in the construction sector is being delayed," adding, "We will guide insurers to secure loss-absorbing capacity and strengthen asset soundness management."