South Korea’s Financial Supervisory Service published preliminary first-half 2025 earnings for 22 life and 31 nonlife insurers, showing aggregate net income of KRW 7.9750 trillion, down 15.0% year on year. Life insurers’ net income fell 8.5% to KRW 3.3340 trillion, with insurance income down KRW 384.6 billion amid higher expenses related to onerous contracts. Nonlife insurers’ net income dropped 19.2% to KRW 4.6410 trillion as higher loss ratios drove a KRW 1.9796 trillion year-on-year decline in insurance income, partly offset by a KRW 657.0 billion increase in investment income on greater bond valuation gains. Premium income rose 8.0% to KRW 124.3823 trillion, led by life insurers (+10.4%) and nonlife insurers (+5.9%), while overall profitability weakened with ROA at 1.24% and ROE at 11.26%; aggregate assets increased to KRW 1,301.8 trillion and shareholders’ equity edged down to KRW 141.0 trillion by end-June 2025. The Financial Supervisory Service indicated it will closely monitor insurers’ financial conditions amid uncertainty in financial markets to prepare pre-emptively for potential risks.
South Korea Financial Supervisory Service 2025-08-27
South Korea Financial Supervisory Service reports insurers’ H1 2025 net income down 15% to KRW 7.98 trillion
South Korea's Financial Supervisory Service reported a 15% year-on-year decline in aggregate net income for life and nonlife insurers in the first half of 2025, totaling KRW 7.9750 trillion. Life insurers' net income fell 8.5% due to higher expenses, while nonlife insurers saw a 19.2% drop driven by increased loss ratios. The authority plans to closely monitor insurers' financial conditions amid market uncertainties.