The Korean insurance industry posted improved business results from its overseas business operations in 2017, although it still suffered USD 23.2 million in deficit. The major driving forces behind the improvement were narrowed underwriting losses and increased investment profit. The business results varied by country to country. While the industry remained in black in Vietnam, the United Kingdom, Japan and Indonesia, deficits were incurred in the United States, China and Singapore. As of year-end, the total assets held by the overseas business units of Korean insurers expanded by 22.2 percent to USD 888.6 million on the back of a rise in premium income.
As of late 2017, ten insurers (3 life insurers and 7 non-life insurers) had 42 overseas business units and 32 of which were subsidiaries and 10 of which were branches. Two new branches were set up in 2017, which are Labuan Branch and Dubai DIFC Branch of Korean Re. There was one stake acquisition deal by Samsung Fire and Marine Insurance. The insurer signed an agreement to acquire a 20 percent stake in Petrolimex Joint Stock Insurance Company in May 2017 - the fifth largest non-life insurer in Vietnam in terms of market share in 2015.
<Total Assets Held by Overseas Business Operations of Korean Insurers(as of Year End)>
Most of the overseas business operations of Korean insurers are based in Asia with nine in China, five in Vietnam, four in Indonesia and three in Singapore. Outside Asia, there are nine units in the United States and four in the United Kingdom. By type of business, there are 36 insurance business operations, while six units are up for running as investment businesses.
<Overseas Business Operations of Korean Insurers(as of Year End)>
<Overseas Business Operations of Korean Insurers by Geography and by Business Type(as of End 2017)>