'Insurance Profit Deterioration' Causes 15.8% Drop in Insurers' Net Profit in Q1

[Financial News] Insurers, which recorded the highest performance last year, received poor report cards in the first quarter of this year.
According to the '2025 Q1 Insurance Company Business Performance (Provisional)' announced by the Financial Supervisory Service on the 27th, the net profit of insurers (22 life insurers and 31 non-life insurers) in the first quarter was 4.0967 trillion won, a decrease of 15.8% compared to the same period last year.
The net profit of life insurers was 1.6956 trillion won, a decrease of 10.9% compared to the same period last year. This is due to the increase in loss burden costs and the decrease in financial asset disposal and valuation gains and losses, which worsened both insurance and investment profits.
The decline was even greater for non-life insurers. 
The net profit of non-life insurers was 2.4011 trillion won, a decrease of 19.0% compared to the same period last year. This is due to the deterioration of insurance profits due to the increase in loss ratios caused by large wildfires, etc.
The first quarter's insurance premium income was 62.7311 trillion won, an increase of 6.9% compared to the same period last year.
Life insurers' insurance premium income increased by 11.0% to 31.1121 trillion won, and non-life insurers' insurance premium income increased by 3.2% to 31.6190 trillion won.
In life insurers, sales of protection (12.5%), variable (8.8%), and retirement pension (69.7%) increased, but the insurance premium income of savings (-13.4%) decreased.
In non-life insurers, sales of long-term (6.6%) and general (4.4%) increased, but the insurance premium income of automobile (-2.9%) and retirement pension (-3.3%) decreased.
The return on assets (ROA) for the first quarter was 1.27%, down 0.32%p from the same period last year. On the other hand, the return on equity (ROE) was 11.94%, up 0.06%p compared to the same period last year.
Total assets were 1,300.6 trillion won, and total liabilities were 1,168.1 trillion won, an increase of 31.6 trillion won (2.5%) and 41.3 trillion won (3.7%) respectively compared to the end of last year.
On the other hand, equity capital was 132.5 trillion won, a decrease of 9.8 trillion won (6.9%) compared to the end of last year. This is due to the greater increase in total liabilities than total assets due to the decline in interest rates and the realization of discount rates.
The Financial Supervisory Service said, "Insurers should manage financial soundness in preparation for concerns about the expansion of uncertainties in the financial market such as stock prices, interest rates, and exchange rates in the future," and "We will closely monitor net profit, financial soundness, etc., and respond preemptively."

sjmary@fnnews.com Seo Hyejin Reporter