The South Korea Financial Supervisory Service published end-March 2026 capital adequacy data for insurers under the Korean-Insurance Capital Standard, showing that sectorwide solvency ratios improved over the quarter. With transitional measures applied, the aggregate K-ICS ratio rose to 216.1% from 212.3% at end-December 2025. Without transitional measures, the ratio increased to 202.6% from 197.6%. Life insurers' ratios rose to 207.7% with transitional measures and 190.7% without them, while nonlife insurers' ratios increased to 229.7% and 222.4%, respectively. Available capital increased over the quarter, reaching KRW310.9 trillion with transitional measures and KRW308.1 trillion without them. The increase was driven by KRW4.5 trillion in net earnings and an KRW18.9 trillion rise in accumulated other comprehensive income linked to a stock market rally. Required capital also rose, to KRW143.9 trillion with transitional measures and KRW152.1 trillion without them, mainly because equity risk increased by KRW12.4 trillion amid the market rally. Higher interest rates reduced disability and morbidity risk by KRW3.4 trillion. The Financial Supervisory Service said it will focus on ensuring insurers maintain sufficient capital buffers against potential risks as financial market uncertainty persists. It will urge insurers with weak capital positions to hold high-quality capital and strengthen risk management.
South Korea Financial Supervisory Service2026-06-19
South Korea Financial Supervisory Service reports insurers' K-ICS capital ratios rose to 216.1% with transitional measures at end-March 2026
The South Korea Financial Supervisory Service said insurers' aggregate K-ICS capital adequacy ratio rose to 216.1% at end-March 2026 with transitional measures applied, up from 212.3% at end-December, and to 202.6% without transitional measures, up from 197.6%. Available capital increased on net earnings and stronger other comprehensive income, while required capital also rose mainly because equity risk expanded. The FSS said it will press insurers with weak capital positions to build high-quality capital and strengthen risk management.