Business Results of Professional Reinsurers for the First Half of 2018
Ten professional reinsurers operating in Korea posted a combined net income of KRW 134.7 billion for the first half of 2018, down 13.8 percent from a year before. Korean Re, which is the only local professional reinsurer in the country, recorded KRW 109.3 billion in net income for the six-month period. The other nine professional reinsurers are Korean branches of foreign reinsurers including Swiss Re, Munich Re, Hannover Re, SCOR and RGA.
They posted a 5.6 percent increase in earned premiums for the same period. Despite a rise in gross written premiums, their underwriting profit plunged to KRW 45.4 billion as loss ratios aggravated due to an increased frequency and severity of losses both in and outside the country. Major loss events include oil tanker collision in the East China Sea in January, a fire on a car carrier vessel at Incheon Port in May and a fire at battery plant in northern Greece in May. Incurred losses surged by 14.1 percent to KRW 2,364 billion in the first half of the year. Meanwhile, a sharp increase in investment gains helped shore up net income results in the face of large losses.
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