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Insurers' Q1 profits dip as competition intensifies

All News 13:30 May 26, 2019

SEOUL, May 26 (Yonhap) -- South Korea's insurance firms saw their profits decline in the first quarter, hit by intensifying competition and auto insurance losses, data showed Sunday.

The combined net profit of insurance firms operating in South Korea stood at 1.98 trillion won (US$1.67 billion) in the first-quarter, down 6.2 percent from a year ago, according to the preliminary data from the Financial Supervisory Service (FSS).

Life insurers saw their combined net profit rise 2.6 percent on year to 1.2 trillion won for the quarter, while the combined net profit of non-life insurers dipped 18.4 percent on year to 718.9 billion won.

Insurers' Q1 profits dip as competition intensifies - 1

"As for life insurance companies, investment income grew based on greater gains in sales and valuation of loans, which mostly contributed to the uptick in net income for the first quarter of 2019," the FSS said in a statement.

"However, nonlife insurers' earnings shrank compared with the previous year as insurance operating loss expanded," it said.

Insurers' premium income totaled 47.5 trillion won in the January-March period, up 0.4 percent on year.

Their aggregate assets grew 6.1 percent to 1,180 trillion won at the end of March. Their return on equity declined 1.21 percentage points to 6.88 percent in the first quarter.

kdh@yna.co.kr
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