Insurers' First-Half Net Income Surpasses 9 Trillion Won... Up 13% on Improved Investment Earnings

Improved Investment Earnings Offset Weak Insurance Results for Life Insurers
Both Life and Non-Life Insurers See Increased Net Income
Financial Supervisory Service: "Continued Market Volatility...Proactive Response Needed"

Domestic insurance companies recorded a net profit of over 9 trillion won in the first half of this year. This strong performance was largely attributed to improved investment income, driven by gains from the disposal and valuation of financial assets, as well as increased interest and dividend income. However, insurance operating profits showed mixed results. Life insurers saw a decline due to loss reserve expenses and interest spread losses, while non-life insurers’ profits improved thanks to the reversal of loss contracts and an increase in general insurance operating profit.

According to the "2026 First Half-Year Financial Results of Insurance Companies (Preliminary)" published on August 27 by the Financial Supervisory Service, the combined net profit of 22 life insurers and 30 non-life insurers in the first half came to 9.0138 trillion won, an increase of 1.0366 trillion won (13.0%) from the same period a year earlier (7.9773 trillion won).

Life insurers posted a net profit of 3.9254 trillion won, up 589.2 billion won (17.7%) from a year ago. Although operating income from insurance fell by 685 billion won, investment income rose by 912.6 billion won (51.6%), boosting overall results.

For non-life insurers, both investment and insurance operating income improved, resulting in a first-half net profit of 5.0884 trillion won—a rise of 447.4 billion won (9.6%) from the previous year. Insurance operating income and investment income increased by 531 billion won (14.0%) and 255.7 billion won (10.2%), respectively.

Insurance companies also showed growth in terms of scale. Total written premiums in the first half amounted to 134.9348 trillion won, up 10.5525 trillion won (8.5%) from the same period last year.

Life insurers’ written premiums totaled 65.2045 trillion won, an increase of 5.0466 trillion won (8.4%) year-on-year. There were increases in protection-type insurance (10.8%), variable insurance (3.9%), and retirement pensions (18.4%), while written premiums for savings-type insurance fell by 1.3%.

Non-life insurers’ written premiums rose to 69.7303 trillion won, up 5.5059 trillion won (8.6%) year-on-year. Premiums increased across the board for long-term insurance (5.8%), automobile insurance (4.3%), general insurance (8.2%), and retirement pensions (24.1%).

Profitability indicators were mixed. The total return on assets (ROA) for insurance companies in the first half stood at 1.28%, up 0.04 percentage points from a year earlier. In contrast, return on equity (ROE) dropped by 2.75 percentage points to 8.52% over the same period.

Despite the rise in net profit, the significant expansion of equity capital contributed to the decline in ROE. As of the end of June, total equity capital for insurers grew by 86.1 trillion won (51.1%) to 254.6 trillion won compared to the end of last year. Total assets increased by 9.2% to 1,467.9 trillion won, and total liabilities grew by 3.2% to 1,213.3 trillion won over the same period.

The Financial Supervisory Service assessed that, despite the decline in the value of interest-bearing assets due to rising interest rates, total capital at insurance companies increased as a result of decreased insurance liabilities and rising stock values.

However, the authority also noted that continued financial market volatility, such as prolonged instability in the Middle East, makes risk management essential even amid improved earnings. A spokesperson for the Financial Supervisory Service stated, "Given ongoing market volatility concerning interest rates, exchange rates, and stock prices, it is necessary to strengthen the management of profitability and financial soundness. We plan to closely monitor insurers’ current profits and financial stability and respond proactively to potential risks."

This content was produced with the assistance of AI translation services.