Insurance Companies' 'COVID-19 Windfall' Last Year... Green Light for CEOs' Reappointment

Kim Jeong-nam DB Insurance '5th Term'
Meritz Records Highest Ever Net Profit

Kim Jeong-nam, Vice Chairman of DB Insurance

[Asia Economy Reporter Oh Hyung-gil] Insurance companies recorded strong performances last year thanks to the COVID-19 windfall, lighting the green light for the reappointment of their chief executive officers (CEOs). Among the CEOs whose terms are about to expire, many are 'long-serving CEOs' with over 10 years in office, drawing attention to whether they will be reappointed.

According to the insurance industry on the 23rd, the terms of Kim Jeong-nam, Vice Chairman of DB Insurance; Kim Yong-beom, Vice Chairman of Meritz Fire & Marine Insurance; Yeo Seung-joo, CEO of Hanwha Life Insurance; Byun Jae-sang, CEO of Mirae Asset Life Insurance; and Luo Jianlong, CEO of Tongyang Life Insurance will end next month. They all share the commonality of having achieved stable performance.

Kim Jeong-nam, Vice Chairman of DB Insurance, is expected to set a record with his 'fifth consecutive reappointment.' DB Insurance posted a consolidated net profit of 563.7 billion KRW last year, a 47.5% increase from 382.2 billion KRW the previous year. Operating profit also rose by 43.2% to 732.9 billion KRW, and revenue increased by 7.7% to 20.1104 trillion KRW.

Notably, last year DB Insurance became the second insurer in the industry to surpass 10 million customers. Vice Chairman Kim joined Dongbu Express in 1979 and has been with the DB Group for over 40 years.

Yongbeom Kim, CEO of Meritz Fire & Marine Insurance

Kim Yong-beom, Vice Chairman of Meritz Fire & Marine Insurance, is also expected to secure a third consecutive term based on strong performance. Meritz Fire & Marine Insurance recorded a net profit of 433.4 billion KRW last year, achieving its highest-ever performance. The company has been adjusting its portfolio focusing on long-term insurance, maintaining a stable loss ratio.

Last year, the loss ratio dropped to a record low of 77.1%. The expense ratio fell by 8.4 percentage points compared to the same period last year, bringing the combined ratio down to 102.4%, the lowest level since the second quarter of 2017. He became CEO in 2015 and was promoted to Vice Chairman in 2017, successfully securing reappointment twice since then.

Yeo Seung-joo, CEO of Hanwha Life Insurance, who succeeded in improving performance, also secured reappointment. Hanwha Life Insurance plans to approve Yeo’s reappointment as an inside director for a two-year term at the regular shareholders' meeting scheduled for the 15th of next month. Hanwha Life’s net profit last year was 241.2 billion KRW, a 311% increase from the previous year. With the establishment of a sales subsidiary scheduled for April 1, this reappointment is interpreted as a move to stabilize management.

Byun Jae-sang, CEO of Mirae Asset Life Insurance, has effectively secured reappointment early on as Ham Man-duk, former co-CEO of Mirae Asset Life Insurance, was appointed CEO of Mirae Asset Financial Services, the sales subsidiary. Mirae Asset Life Insurance is solidifying its dominance in the variable insurance market. From January to November last year, it recorded a total initial premium of 1.4295 trillion KRW in variable insurance, achieving a 52.5% market share.

Luo Jianlong, CEO of Tongyang Life Insurance, is also attracting attention regarding whether he will succeed in a 'third consecutive reappointment.' After China’s Anbang Insurance acquired Tongyang Life Insurance in September 2015, Luo rose through the ranks from Chief Operating Officer (COO) to CEO. Last year, Tongyang Life Insurance posted a net profit of 128.6 billion KRW, a 14.5% increase from the previous year.

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