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S. KOREA FSS REPORTS PROFITS AND SHARE PRICE GAINS IN 3RD QUARTER

Summary

Highlights – S. Korea FSS reports profits and share price gains in 3rd quarter. The risk-based capital (RBC) ratio of local insurance firms stood at 283.9 percent at the end of September. Local insurers are required to maintain the ratio […]

Highlights –

  • S. Korea FSS reports profits and share price gains in 3rd quarter.
  • The risk-based capital (RBC) ratio of local insurance firms stood at 283.9 percent at the end of September.
  • Local insurers are required to maintain the ratio at 100 percent or above.
  • The RBC ratio for life insurance companies rose 10.8 percentage points on-quarter to 303.5 percent.

South Korean Financial Supervisory Service (FSS) reported a data showing that the insurance companies saw their financial health improve in the third quarter as more profits and share price gains bolstered capital.

According to the data, the risk-based capital (RBC) ratio of local insurance firms stood at 283.9 percent at end-September, up 7.5 percentage points from three months earlier.

The financial watchdog also mentioned that their RBC ratio rose for the second consecutive quarter in the July-September period on the back of greater earnings and increased share prices.

Local insurers are required to maintain the ratio at 100 percent or above, while the watchdog advises insurance firms to have ratios of 150 percent or higher.

According to the data, the RBC ratio for life insurance companies rose 10.8 percentage points on-quarter to 303.5 percent, with the figure for non-life insurers climbing 1.2 percentage points to 247.7 percent.

Insurance firms in South Korea are required to gradually increase their capital reserves to better cope with tougher global accounting standards for insurers, set to go into effect in 2022.

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