KB Insurance and KB Life Show Contrasting Results in First Half of the Year

KB Insurance's Net Profit Drops 2.3% in First Half
KB Life's Net Profit Rises 2.3%

The performance of KB Financial Group’s insurance subsidiaries showed mixed results.

According to KB Financial Group on July 24, KB Insurance’s net profit for the first half of this year was 558.1 billion KRW, a decrease of 2.3% compared to the same period last year. This was due to a decline in insurance operating profit, despite an increase in sales of protection-type insurance policies. The decrease in insurance operating profit was mainly caused by the base effect from the reversal of Incurred But Not Reported (IBNR) reserves in the first quarter of last year.

Exterior view of KB Insurance headquarters.

KB Insurance’s net profit for the second quarter was 244.6 billion KRW, down 22% from the same period last year. This decline was due to a slowdown in the global economic recovery, which led to a decrease in fund dividend and valuation gains, as well as a reduction in structured bond valuation gains caused by a smaller decrease in the US base interest rate. However, the Contractual Service Margin (CSM) for the second quarter increased by 3.3% from the previous quarter to 9.2 trillion KRW.

A representative from KB Insurance stated, “Despite the overall slowdown in the insurance industry’s growth this year, we have maintained solid performance. Although the loss ratio for auto insurance has risen, sales have continued to grow steadily, especially for competitive long-term insurance products, and the loss ratio is being managed stably.”

KB Life Insurance, the life insurance subsidiary of KB Financial Group, performed well. Based on separate financial statements, KB Life’s net profit for the first half of this year was 189.1 billion KRW, an increase of 2.3% compared to the same period last year. The company achieved similar results to last year as the margin between actual and expected results narrowed due to increased new contract sales and reduced indirect costs.

KB Life’s net profit for the second quarter was 102.1 billion KRW, an increase of 17.3% from the same period last year. The CSM increased by 3.3% from the previous quarter to 3.0882 trillion KRW.

A representative from KB Life Insurance said, “New contract sales increased due to the expansion of savings annuity sales, and investment profit was boosted by bond rebalancing.”

KB Life Insurance Headquarters Building Exterior.

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