(MENAFN- Qatar News Agency) South Korean insurance companies' net profit jumped 30.2 percent in the first six months of the year from a year earlier on a rise in investment-related earnings, the financial watchdog said Sunday.
The combined net income of local life and non-life insurers reached 4.47 trillion won (US$3.8 billion) in the January-June period, compared with 3.44 trillion won the previous year, according to the Financial Supervisory Service (FSS).
Life insurance firms posted a 40.2 percent on-year surge in profit to 2.8 trillion won over the six-month period, while non-life insurers' net gained 16.3 percent to 1.68 trillion won, according to South Korean Yonhap news agency.
Increased investment returns contributed to the strong bottom lines, with life insurers earning 11.2 trillion won from investment in the first half, up 3.9 percent from a year earlier. Non-life insurers posted a 21.5 percent on-year increase in investment returns over the same period at 3.3 trillion won.
Their combined premium income rose 5.5 percent to 91 trillion won from 86.2 trillion won a year ago.
The return on assets (ROA), a key gauge of profitability, grew 0.18 percentage point to 0.83 percent for life insurers, with that of non-life insurers remaining flat at 1.62 percent.
The insurance companies' combined assets stood at 903.3 trillion won as of end-June, up 11.5 percent on-year from 810.1 trillion won.
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