Korean Re's Business Results for the First Three Quarters of 2018
Korean Re reported a 4.3 percent increase in gross written premiums to KRW 5,574.3 billion for the first three quarters of 2018 compared to the same period of 2017. We saw our overseas business grow by 14.9 percent thanks to increases in writings of property risks from Europe and the Americas. There was also a solid rise in life business from China and Chile.
Our domestic book of business grew by 1.3 percent, backed by life and long-term property business. Domestic personal lines of business showed a top-line growth of 5.5 percent, while domestic commercial business declined by 4.9 percent as market conditions remained largely sluggish. New business in commercial lines continued to fall due to slowdown in the construction and shipbuilding sectors. The decrease was also driven by our move to reduce personal accident business with high loss ratios as part of our portfolio restructuring efforts.
For the nine-month period of 2018, Korean Re posted underwriting losses of KRW 12.7 billion due to unusually frequent large losses. An uptick in loss ratio drove up the combined ratio to 99.9 percent, although our personal-line combined ratio improved to 99.1 percent. Despite the negative underwriting results, our nine-month net income amounted to KRW 95 billion, supported by a strong growth in investment returns. For the January through September period of this year, our net investment income expanded by 16.7 percent to KRW 128.1 billion compared to the same period of last year, thanks to a boost from alternative investments and foreign bonds.
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