Go to Contents Go to Navigation

Insurers' financial status deteriorates in Q4

All Headlines 09:06 April 12, 2016

SEOUL, April 12 (Yonhap) -- The financial health of South Korean insurance companies deteriorated in the fourth quarter from three months earlier as dividend payouts and share buybacks reduced their available capital, the financial watchdog said Tuesday.

The risk-based capital (RBC) ratio of 56 life and non-life insurers averaged 267.1 percent in the October-December period, down 17.7 percentage points from 284.8 percent the previous quarter, the Financial Supervisory Service (FSS) said in a statement.

The latest figure marked a sharp decline from a 6.6 percentage point gain in the July-September quarter, the FSS said.

Life insurers' RBC ratio fell 18.8 percentage points on-year to 278.3 percent during the fourth quarter, with non-life institutions down 15.4 percentage points to 244.4 percent, it said.

The RBC ratio, a key gauge of financial stability, measures an insurer's ability to absorb losses and pay insurance to policyholders. Local insurers are required to maintain an RBC ratio of 100 percent or above.

kyongae.choi@yna.co.kr
(END)

HOME TOP
Send Feedback
How can we improve?
Thanks for your feedback!