SEOUL– The combined net profit of insurance firms in South Korea dropped by more than 21 percent in the first quarter of this year amid the pandemic and a decline in asset value, regulator’s data showed Monday.
The net profit of 53 major insurers here totaled 3.05 trillion won (US$2.45 billion) in the January-March period, down 21.2 percent from a year ago, according to the data compiled by the Financial Supervisory Service (FSS).
The combined net profit of 23 life insurers’ quarterly net profit contracted 45.2 percent on-year to 1.39 trillion won amid the pandemic, which weighed down the overall sector’s performance
The regulator attributed the slump to a fall in savings-type insurance sales and asset values amid the rising market rates.
In contrast, 30 non-life insurers’ net profit jumped 25.4 percent on year to 1.65 trillion won.
Non-life insurance firms logged robust earnings, as the country’s COVID-19 curbs discouraged outside social gatherings and lowered the loss rate.
Most of the country’s social distancing curbs, such as restrictions in the number of gatherings and operating hours in restaurants and bars, remained in effect until May 2.
Their combined premium income contracted 3.1 percent on-year to 50.87 trillion won during the cited three-month period, data showed.
Source: Yonhap News Agency