South Korea’s insurance industry recorded a 4.6% increase in combined net profit in 2024, reaching KRW 14.14 trillion (US$9.65 billion), according to provisional data from the Financial Supervisory Service (FSS). The overall improvement was driven by higher investment returns, which helped offset weaker results from core insurance operations.
The combined insurance underwriting profit for the life and non-life insurance industries decreased from 1.34 trillion KRW in 2023 to 1.25 trillion KRW in 2024, a decrease of 87.79bn KRW.
Premium income in the non-life segment grew 1.9% to KRW127.6 trillion. Long-term insurance saw a 5.2% increase, while general insurance rose 7.4%. These gains were partially offset by declines in motor insurance (–1.8%) and retirement pensions (–7.2%).
Non-life companies saw a slight decrease in underwriting profitability, with insurance profit decreasing from 832.81 billion KRW in 2023 to 824.66 billion KRW in 2024, representing a 1.0% decline, mainly due to a rise in motor loss ratios, the FSS said.
Investment performance strengthened for the segment; interest and dividend income lifted investment returns by 22.1% to KRW325.77bn, helping to sustain overall profit growth.
Premium income in the life sector edged up 0.9% to KRW 113.44 trillion. Gains were led by protection-type products, which rose 13.1%, alongside more modest increases in savings (+2.7%) and variable insurance (+0.4%). These gains helped offset a sharp 26.2% decline in premiums from retirement pension products.
However, the life underwriting profits declined 15.7% year-on-year, from KRW 505bn in 2023 to KRW 426.25bn in 2024, which fell due to factors such as strengthened IBNR reserve requirements, the FSS said. Investment income provided a strong counterbalance, with returns climbing 80.6% to KRW3.02 trillion on the back of higher interest and dividend income.
Overall, insurance premium income totalled KRW241.05 trillion, a 1.4% rise from the previous year. The industry’s return on assets improved slightly to 1.13%, while return on equity rose to 9.12%. However, total capital declined 15.5% to KRW142.1 trillion as liabilities grew faster than assets amid falling interest rates and adjusted discount rate assumptions for insurance liabilities.
The FSS stated that while profits rose in 2024 due to stronger investment income, “insurance companies need to closely manage financial soundness amid growing uncertainty in capital markets” and that it plans to “closely monitor profitability and financial stability” going forward.
