KB Insurance Posts KRW 20.07 Billion Net Profit in Q1, Down 36% Year-on-Year

KB Insurance announced on April 23 that its net profit for the first quarter of this year was KRW 20.07 billion, marking a 36% decrease compared to the same period last year.

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During the same period, insurance profit stood at KRW 18.28 billion, down 30.5%, while investment profit was KRW 12.81 billion, a decrease of 22.7%.

For the first quarter of this year, long-term insurance profit amounted to KRW 21.84 billion, a 15.2% decline year-on-year. The loss ratio for long-term insurance rose by 2 percentage points to 82%. Additionally, auto insurance recorded a deficit of KRW 2.49 billion, and general insurance also posted a deficit of KRW 1.07 billion. The Contractual Service Margin (CSM), a key indicator of future profit, reached KRW 944.76 billion, up 6.2% from the end of last year, while new contract CSM grew 11.6% to KRW 41.74 billion, maintaining a solid level. Furthermore, the capital adequacy ratio (K-ICS) increased by 5.8 percentage points year-on-year to 188%.

KB Insurance stated, "Net profit for the first quarter of this year decreased year-on-year due to a decline in investment profit caused by increased market volatility, as well as a decrease in insurance operating profit due to a rise in loss ratios across all insurance sectors. Going forward, we plan to strengthen our market position with differentiated product development and company-wide marketing strategies, focusing our capabilities on proactive loss ratio management and retention improvement using artificial intelligence (AI)."

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