Insurers have operated 41 overseas businesses in 11 countries as of yearend.
South Korea’s net income for domestic insurance companies' overseas ventures ended in the negative, declining by $138.4m to reach -$15.9m, in fiscal year 2023 (FY’23).
Conversely, net income for life insurers surged by $27.9m or 86.1% to $60.3m, while non-life insurers faced setbacks due to natural catastrophes, resulting in a decrease of $166.3m to minus $76.2m, data from the Financial Supervisory Service (FSS) showed.
As of year-end 2023, a total of 11 countries hosted 41 overseas businesses operated by four life insurance and seven non-life insurance companies.
The insurance sector overall experienced a net income decline of $138.8m, totalling minus $27.0m in 2023, primarily attributed to significant losses caused by a wildfire on Maui Island.
However, the financial investment sector saw a modest increase in net income by $0.4m, reaching $11.1m, driven by improved performance in real estate rental and leasing.
Regionally, Asia operations reported a yearly net income increase of $24.8m to $129.9m in 2023, whilst European operations saw a net income of $4.1m, up by $7.2m from the previous year.
Conversely, losses in the US expanded by $170.4m, resulting in a net loss of $149.9m for 2023.
Aggregate assets of overseas businesses amounted to $6.44 billion at the end of December 2023, marking a 1.7% increase from the previous year.
However, liabilities contracted by 9.0% to $3.44b due to the implementation of IFRS 17, which measured insurance liabilities at current market value.
Shareholders' equity rose by 17.6% to $3.00b, driven by the introduction of IFRS 17 and paid-in capital.
The FSS will monitor the financial stability of overseas businesses and support newly established operations as domestic insurance companies continue to expand into global markets.
