The Financial Supervisory Service said on the 27th that net income for the period at 52 insurers in the first half of this year—22 life insurers and 30 non-life insurers—was 9.0138 trillion won, up 1.0366 trillion won (13.0%) from a year earlier.
Life insurers' net income for the period was 3.9254 trillion won, up 589.2 billion won (17.7%) from a year earlier. Investment income improved by 912.6 billion won, helped by interest and dividends income and gains on disposal and valuation of financial assets. In contrast, insurance income deteriorated by 685 billion won due to factors such as loss burden costs and negative experience variance.
Non-life insurers' net income for the period was 5.0884 trillion won, up 447.4 billion won (9.6%) from a year earlier. Investment income improved by 255.7 billion won on the back of gains on disposal and valuation of financial assets. Insurance income also improved by 531 billion won, supported by reversals of loss-making contracts and higher income in general insurance.
In the first half, insurers' direct premiums written were 134.9348 trillion won, up 10.5525 trillion won (8.5%) from a year earlier. Life insurers' direct premiums written were 65.2045 trillion won, up 5.0466 trillion won (8.4%). Direct premiums for protection-type insurance rose 10.8%, and variable insurance and retirement pensions increased 3.9% and 18.4%, respectively. In contrast, direct premiums for savings-type insurance fell 1.3%.
Non-life insurers' direct premiums written were 69.7303 trillion won, up 5.5059 trillion won (8.6%) from a year earlier. Long-term insurance rose 5.8% and auto insurance 4.3%, while general insurance and retirement pensions increased 8.2% and 24.1%, respectively, with premiums rising across all segments.
Profitability indicators were mixed. Insurers' return on assets (ROA) in the first half was 1.28%, up 0.04 percentage point (p) from a year earlier. Return on equity (ROE) was 8.52%, down 2.75 percentage points over the same period.
Insurers' assets and liabilities also increased. As of the end of June, insurers' total assets were 1,467.9 trillion won, up 123.8 trillion won (9.2%) from the end of last year. Total liabilities were 1,213.3 trillion won, up 37.7 trillion won (3.2%) over the same period. Total capital was 254.6 trillion won, up 86.1 trillion won (51.1%) from the end of last year.