Insurance Companies' Overseas Branches Net $197 Million Last Year... Non-Life Insurers Hit by Natural Disasters

Net profit reached $197 million last year, up 23.8% year-on-year
Impact of Hanwha Life’s acquisitions of a U.S. securities firm and an Indonesian bank
Non-life insurers’ net profit declines due to Myanmar earthquake and Thailand floods

Last year, overseas branches of insurance companies recorded a net profit of $197 million, showing improved performance. However, when excluding the effect of newly incorporated overseas branches, the overall growth trend slowed. In the case of non-life insurers, performance worsened, which has been attributed to factors such as natural disasters.

According to the "2025 Overseas Branch Business Performance (Provisional)" report released by the Financial Supervisory Service on May 7, the net profit of overseas branches of insurance companies last year was $197 million (approximately KRW 280 billion), an increase of $37.9 million (23.8%) compared to the previous year ($159.1 million).

The net profit of overseas branches of life insurers surged to $109.3 million, up $45.3 million (70.8%) from the previous year. This was largely due to the incorporation of new overseas branches. In fact, when excluding newly incorporated and sold branches, the net profit of existing overseas branches actually declined.

The net profit of overseas branches of non-life insurers was $87.7 million, down $7.4 million (7.8%) compared to the previous year. The Financial Supervisory Service explained that this was due to natural disasters in Southeast Asia, such as the earthquake in Myanmar and flooding in Thailand.

By business sector, the net profit of insurance business overseas branches was $128.6 million, a decrease of $22.1 million compared to the previous year. In contrast, the financial investment sector recorded a surplus of $34.2 million, an increase of $33.1 million year-on-year, largely due to Hanwha Life’s acquisition of a U.S. securities firm. The banking sector also saw an increase of $29.3 million thanks to Hanwha Life’s acquisition of an Indonesian bank.

By region, the highest net profit was in Asia at $121.6 million, followed by the United States at $66.4 million and Europe at $9 million. In particular, the net profit in the United States increased by $32 million year-on-year, thanks to Hanwha Life’s acquisition of a U.S. securities company.

The total assets also expanded. As of the end of last year, total assets of overseas branches stood at $16.24 billion (approximately KRW 23.3 trillion), an increase of 121.2% compared to the end of the previous year. Liabilities increased by 202.7% year-on-year, reaching $12.02 billion due to the inclusion of borrowings and deposits from new branches. Capital increased by 25.2% to $4.22 billion (approximately KRW 6 trillion), reflecting expanded net profit and additional capital from new branches.

The Financial Supervisory Service assessed that, excluding the effect of newly incorporated overseas branches, the growth of insurance companies’ overseas businesses is slowing. The agency also expressed concern that the profitability of non-life insurers is deteriorating due to the impact of natural disasters.

A Financial Supervisory Service official stated, "Uncertainty in the management environment for overseas branches is growing due to instability in the Middle East, volatility in global financial markets, and the increased risk of large-scale disasters arising from climate change. We will closely monitor the management and financial soundness of overseas branches and continue to guide insurance companies in their risk management."

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