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Insurance firms' Q1 net dips 16% on increased loss rates, decline in investment returns

Published: 27 May. 2025, 09:22

Samsung Life Insurance’s headquarters in Seocho District, southern Seoul [NEWS1]

Insurance companies in Korea saw their combined net profit fall nearly 16 percent in the first quarter of the year from a year earlier due largely to increased loss rates and a fall in investment returns, data showed Tuesday.

The combined net profit of 22 life insurers and 31 non-life insurance companies here came to 4.09 trillion won ($2.99 billion) in the January to March period, down 15.8 percent, or 770 billion won, from a year earlier, according to the data from the Financial Supervisory Service.

The on-year decline was attributed to a rise in loss rates and a decline in investment returns, according to the financial watchdog.

Life insurance firms' net profit fell 11 percent on-year to 1.69 trillion won, with that of non-life insurers dipping 19 percent to 2.4 trillion won.

The companies' insurance premium income came to 62.73 trillion won in the first quarter, up 6.9 percent from a year earlier, the data showed.

The insurance firms' return on assets stood at 1.27 percent at the end of March, down 0.32 percentage point from a year earlier, with their return on equity increasing 0.06 percentage points to 11.94 percent.

Their total assets stood at 1,300 trillion won as of the end of March, up 2.5 percent from a year earlier.

Yonhap