Dongyang Life Insurance Q1 Net Profit Drops 41% to 46.7 Billion KRW... K-ICS Ratio Also Falls

Dongyang Life Insurance announced on May 19 that its net profit for the first quarter of this year was 46.7 billion KRW, a decrease of 41.1% compared to the same period last year.

Insurance profit was 4.1 billion KRW, a sharp decline of 92.7% from 56.3 billion KRW in the same period last year, while investment profit increased by 25.6% to 50.4 billion KRW from 40.1 billion KRW a year earlier. Dongyang Life Insurance explained, "Insurance profit declined due to an expanded interest margin, changes in the age-based loss ratio assumption system, and changes in actuarial assumptions, all of which are one-off factors." The company also noted, "There was a base effect from last year's record-high performance, which contributed to the decline in results."

The preliminary risk-based capital (K-ICS) ratio for the first quarter stood at 127%, down 28.5 percentage points from the end of last year and below the financial authorities' recommended level of 150%. Dongyang Life Insurance stated, "We are working to optimize asset-liability matching through co-reinsurance and the expansion of long-term assets. We expect the K-ICS ratio to improve by approximately 27 percentage points in the second quarter due to the effect of the 500 million USD subordinated bond issued this month."

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