Kyobo Life Insurance Reports H1 Net Profit of 671.6 Billion KRW, Up 16% YoY
Stable Insurance and Investment Profits
Impact of Accounting Standard Changes... "Still Difficult to Compare Directly"
Kyobo Life Insurance's net profit for the first half of this year exceeded 670 billion KRW. This is attributed to stable insurance service profits as well as increased investment gains.
Kyobo Life Insurance announced on the 14th that its consolidated net profit for the first half of this year reached 671.6 billion KRW, a 34.0% increase compared to the same period last year. Operating profit was 877.4 billion KRW, up 53.4% during the same period.
Kyobo Life Insurance explained, "The increase in investment gains due to stable insurance service profits and valuation gains from the decline in market interest rates was positive. However, since the first half results were significantly affected by the application of the new accounting standard (IFRS 17), it is difficult to simply compare them with last year's results."
Regarding the newly introduced profitability indicator, the Contractual Service Margin (CSM), 665.7 billion KRW was added based on new contracts in the first half of this year. As of the first half of this year, the total CSM was recorded at 4.6378 trillion KRW. CSM is a concept that evaluates future profits from insurance contracts. At the time of the insurance contract, it is recognized as a liability and amortized as profit over the duration of the contract.
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Kyobo Life Insurance emphasized that to proactively prepare for new standards and regulations such as IFRS 17 and the new solvency regime (K-ICS), it has focused on expanding asset duration through long-term bond investments from an asset-liability management (ALM) perspective. In particular, during the period of rising interest rates, the company has concentrated on securing high-interest assets in alternative investments and bond assets to establish a stable source of recurring profit. It also stated that it is actively responding to the market while strengthening the soundness management of household loans and alternative investments.
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