Stock Losses, Payouts Add Up To Dismal 2000 for Insurers

Most domestic non-life insurance companies suffered huge losses in the fiscal year that ended March 31.

According to provisional figures released by the companies Thursday, the local non-life insurers incurred a combined net loss of 488.2 billion won ($373.8 million) in fiscal 2000. Nine out of 11 local non-life insurers saw red ink.

LG Insurance Co. was the worst performer with a net loss of 137 billion won ($105 million), compared with 18.2 billion won in net profits in the previous year. It was followed by Kukje Hwajae with a net loss of 80 billion won, Daehan Fire & Marine Insurance Co. with 74.2 billion won and Regent Fire & Marine Co. with 71.6 billion won.

Experts explained that the insurance firms suffered massive losses due to a steady increase in insurance payouts and losses from their stock investments.

In contrast, Samsung Fire & Marine Co. raked in 96.2 billion won of net income in fiscal 2000, but the figure was down from 139.9 billion won a year earlier. Dongbu Insurance Co. managed 4.1 billion won in net profits, compared with 8.2 billion won in fiscal 1999.

by Kim Hyun-chul