Seoul: Overseas branches of South Korean insurance companies reported a significant turnaround in their net income last year, shifting from losses to profits driven by increased revenues and a beneficial base effect.
According to Yonhap News Agency, the 44 overseas operations of four life insurance companies and seven nonlife insurance firms recorded a combined net profit of US$159 million in the last year. This marks a substantial recovery from a loss of $14.3 million in the previous year. The data, sourced from the Financial Supervisory Service (FSS), highlights the financial regulator’s attribution of this rebound to the combined factors of higher revenues and the base effect.
In 2023, the profitability of these insurance firms was adversely affected by severe natural disasters, including the wildfire on Hawaii’s Maui island and Typhoon Mawar’s impact on Guam, resulting in a significant decline in profits. However, in 2024, nonlife insurance firms managed to achieve a net profit of $95 million, while life insurers posted a combined net profit of $64 million.
The total assets of these overseas branches reached $7.34 billion by the end of last year, marking a 14.3 percent increase from the previous year, as reported by the financial watchdog.