Tongyang Life, Now Part of Woori Financial Group, Continues to Improve Financial Soundness

Sustained Improvement in Risk-Based Capital Ratio

The financial soundness of Tongyang Life Insurance, which was incorporated into Woori Financial Group, has been continuously improving.

According to the financial industry on November 25, Tongyang Life Insurance's risk-based capital ratio (K-ICS standard) for the third quarter of this year is estimated at approximately 172.7%, an improvement of 45.5 percentage points compared to the first quarter (127.2%). This improvement is attributed to strengthened risk management and capital expansion efforts that have been ongoing since the beginning of the year, leading to a recovery in financial soundness.

The risk-based capital ratio is a key indicator that measures an insurer's available capital against required capital, showing whether the insurer can pay insurance claims to policyholders in a timely manner. Tongyang Life Insurance's ratio far exceeded the minimum standard of 130% recommended by financial authorities.

The company explained that it is focusing on strengthening its fundamentals by streamlining risk management and reducing required capital. Since joining Woori Financial Group in July, Tongyang Life Insurance has made capital soundness its top priority, improving its risk structure through asset portfolio readjustment and duration management. As a result, its required capital for the third quarter is estimated at about 2.2828 trillion won, a decrease of approximately 14.3% compared to the first quarter. The company emphasized that the streamlining of interest rate risk and credit risk management has led to tangible improvements in these figures.

Proactive efforts to expand capital have also been pursued. In May, Tongyang Life Insurance issued US$500 million (approximately 700 billion won) in foreign currency subordinated bonds. On November 4, the company issued an additional 200 billion won in subordinated bonds, further increasing available capital and raising the risk-based capital ratio.

Industry experts view the improvement in Tongyang Life Insurance's risk-based capital ratio not as a one-off effect, but as the beginning of "structural stabilization." Kyobo Securities stated in a recent report, "In the long term, after becoming a subsidiary of Woori Financial Group, synergies with other group companies are expected to expand, and the gradual upward trend in the K-ICS ratio is also positive."

A Tongyang Life Insurance representative stated, "Our goal is to maintain a stable capital ratio despite regulatory tightening and financial market volatility," adding, "We will continue to ensure a stable financial structure through ongoing capital management and enhanced risk response capabilities."

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