Seoul: Insurance companies in South Korea saw their combined net profit gain 4.6 percent from a year earlier in 2024 on the back of investment returns, data showed Tuesday. The combined net profit of 22 life insurers and 32 non-life insurance companies here came to 14.14 trillion won (US$9.65 billion) last year, up from the previous year's 13.51 trillion won.
According to Yonhap News Agency, the on-year rise was attributed to an increase in investment returns, which offset a decline in the profitability of insurance-related business, as noted by the financial watchdog. Life insurance firms' net profit increased 7.1 percent on-year to 5.64 trillion won, while non-life insurers saw a 3.1 percent growth to reach 8.51 trillion won.
The companies' insurance premium income totaled 241.05 trillion won last year, marking a 1.4 percent rise from a year earlier. Additionally, the firms' return on assets rose to 1.13 percent at the end of December, up 0.03 percentage point from the previous year. Their return on equity also saw an increase of 1.08 percentage points, reaching 9.12 percent.
The total assets of these insurance firms amounted to 1,273.2 trillion won as of the end of December, reflecting a 3.8 percent growth from the previous year.