Kyobo Life Insurance Reports 585.3 Billion KRW Net Profit in First Half, Down 11.6% Year-on-Year

Kyobo Life Insurance reported a standalone net profit of 585.3 billion KRW for the first half of this year. This represents an 11.6% decrease compared to the first half of last year (661.8 billion KRW).

According to Kyobo Life Insurance on August 14, its consolidated net profit attributable to owners of the parent company was 582.4 billion KRW, down 5.4% from the same period last year (615.9 billion KRW).

Kyobo Life Insurance Gwanghwamun Headquarters Building. Photo by Kyobo Life Insurance

Despite volatility in the financial markets, the company maintained a solid business performance based on proactive asset management, expansion of protection-oriented sales, and an increase in the Contractual Service Margin (CSM). However, its results declined compared to the previous year.

For the first half, investment profit and loss amounted to 496.9 billion KRW. The company attributed this to timely switching between long- and short-term bonds in response to interest rate changes, proactive inclusion of high-quality bonds and loan assets, diversification of its investment portfolio including stocks and alternative investments, and an active rebalancing strategy.

Kyobo Life Insurance has maintained a stable income structure by increasing the proportion of recurring earnings such as interest and dividends. In particular, it has continued to expand investments in long-term bonds in accordance with Asset-Liability Management (ALM) principles, and has focused on risk management to reduce capital volatility caused by interest rate changes.

Insurance profit and loss reached 253.6 billion KRW. The company maintained its profit structure by increasing the proportion of protection-type products such as health insurance.

In the second quarter of this year, new contract CSM (Contractual Service Margin) was 274.7 billion KRW, an increase of 17.4 billion KRW compared to the first quarter (257.3 billion KRW). The cumulative CSM for the first half was 6.2411 trillion KRW, up 43.2 billion KRW from the first quarter (6.1979 trillion KRW). The continued growth was supported by the expansion of new contracts and efficient management of existing contracts.

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