The South Korea Financial Supervisory Service (FSS) published preliminary 2025 earnings results for 22 life and 30 nonlife insurance companies, showing aggregate net income of KRW12.2172 trillion, down KRW2.0673 trillion (14.5%) from 2024. Premium income rose 11.1% to KRW266.6595 trillion, while profitability metrics weakened with return on assets at 0.94% and return on equity at 7.86%. Life insurers’ net income fell 11.8% to KRW4.9680 trillion as insurance income declined by KRW352.7 billion due to experience losses and an increase in onerous contracts, and investment income decreased by KRW125.5 billion amid higher insurance finance expenses. Nonlife insurers’ net income dropped 16.2% to KRW7.2492 trillion, as a KRW2.6741 trillion fall in insurance income linked to higher long-term and auto loss ratios outweighed a KRW1.1672 trillion rise in investment income driven by higher interest and dividend income. Premium income reached KRW127.5061 trillion for life insurers and KRW139.1533 trillion for nonlife insurers, with retirement pensions showing strong growth in both segments, while savings insurance and auto insurance declined. Total assets increased 5.9% to KRW1,344.2 trillion and shareholders’ equity rose 18.5% to KRW168.5 trillion at end-December 2025, with liabilities up 4.3% to KRW1,175.6 trillion, with all figures described as preliminary and subject to change. The FSS said it will closely monitor risks to insurers’ earnings and financial stability and will guide companies to strengthen loss-absorbing capacity to respond pre-emptively if risks materialize.
South Korea Financial Supervisory Service 2026-03-30
South Korea Financial Supervisory Service reports insurers’ 2025 preliminary net income fell 14.5% to KRW12.2172 trillion
The South Korea Financial Supervisory Service published preliminary 2025 earnings for 22 life and 30 nonlife insurers, reporting aggregate net income of KRW12.2172 trillion, down 14.5% year-on-year, despite an 11.1% increase in premium income to KRW266.6595 trillion. Life and nonlife net income declined 11.8% and 16.2% respectively, driven by weaker insurance income from higher loss ratios and onerous contracts, partly offset by stronger investment income in nonlife. The authority will monitor risks to insurers’ earnings and financial stability and guide firms to strengthen loss-absorbing capacity.