Korean Re’s Business Results for the First Quarter of 2022
Korean Re reported strong premium growth for the first quarter of 2022, with gross written premiums jumping by 15.3% to KRW 2,278.9 billion. The growth was driven mostly by new coinsurance business, while a robust increase in premiums from overseas business also boosted overall top-line growth. Although our overseas life business shrank due to portfolio adjustment, we saw our overseas P&C business grow strongly on the back of rate increases. Domestic personal lines of business recorded a premium growth of 28.2% thanks to coinsurance transactions. Excluding coinsurance transactions, we achieved a 4% increase in premiums from domestic personal lines as long-term and motor businesses continued to grow.
For the three months ending March 31, 2022, we delivered KRW 46.9 billion in net income, down 17% compared to the same period of the previous year. The deterioration in profit was attributable to weaker underwriting results of our overseas business amid growing COVID-19 losses coupled with natural catastrophe losses. We reported a combined ratio of 98.7%, up 0.1%p year on year, with the ratio for overseas business rising to 103.6%.
However, we continued to make a striking improvement in domestic commercial business, with its combined ratio falling to 77.9% from 87.9%. This higher underwriting profitability was driven by favorable pricing trends in most commercial lines of business and fewer large-loss events in Korea. Our domestic personal lines of business also improved to a combined ratio of 100.9% from 101.9% a year earlier.
We achieved stable investment results, with investment gains increasing by 0.4% to KRW 52.4 billion in the first quarter of 2022, backed by returns on alternative investments. In spite of decreased gains on the sale of bonds, the yield on alternative investments increased strongly as we continued our expansion into new and diversifying sources of investment return to deliver stable investment performance. Our alternative investment portfolio consists mostly of high-quality assets that generate stable cash flows. In the first three months of the year, we posted an investment yield of 3.0% in a challenging investment climate arising from the COVID-19 pandemic and increased market volatility.
< Korean Re’s Business Results for the First Quarter of 2022>
*The above figures are based on the company’s separate financial statements, with foreign currency effects being excluded for underwriting income, investment income, and combined ratio.