Korean Re's Business Results for the First Half of 2024

For the first half of 2024, Korean Re reported decreases in revenue and net income compared to the same period of the prior year, following changes in revenue recognition patterns. In accordance with updated actuarial guidelines from the Financial Supervisory Service, revenue recognition patterns were revised effective from the second half of 2023.

*Based on separate financial statements under IFRS 17 and 9 except for Gross and Net Premiums

We saw our gross written premiums decline marginally year on year to KRW 3,799.3 billion for the first six months of 2024. This negative growth was mainly due to our profit-oriented underwriting strategy under which some underperforming portfolios were reduced such as long-term and motor insurance. We continued to adjust our portfolio by line of business to improve profit and manage the volatility of business results.

Our domestic Property & Casualty (P&C) business decreased by 6% as we reduced or withdrew from treaties with lower margins such as agriculture and motor, while there was a 3.7% increase in our overseas P&C business, driven by rate increases and new business development. We reported a 2.7% rise in gross written premiums from our Life & Health business thanks to business growth arising from the long-term products that we had developed in cooperation with cedants.

Investment profit rose by 12.3% to KRW 194.6 billion due to increased interest and dividend income. Our book yield improved despite the impact of loss reserving on real estate PF loans. Invested assets increased by 16.1% to KRW 9,972 billion following the issuance of hybrid securities (KRW 250 billion) and an additional coinsurance business from Samsung Life in November 2023. Since most of the transferred assets from the coinsurance contract are invested in fixed-income securities our bond holdings accounted for over 60% (or approximately KRW 6 trillion) of the total invested assets at the end of June 2024. In line with our commitment to enhancing the quality of our investment portfolio, our core strategy will remain maximizing risk-adjusted returns within asset allocation constraints.