S&P assigns 'intermediate risk' rating to Korea's non-life insurers

International ratings agency Standard and Poor's said Tuesday it has assigned an "intermediate risk" rating to South Korea's property and casualty insurance industry, saying that the industry's strength is undermined by security risks from North Korea.

In a report on the insurance industry and country risk assessment, S&P said South Korea's non-life insurers "will remain stable over the near to medium term." 

The assessment was based on South Korea's growing economy, the industry's sustained profitability, limited catastrophe exposure and high entry barriers, the ratings agency said in a statement.

"However, these strengths are offset to some degree by the country's exposure to some security risks arising from North Korea," it said.

North Korea, which has conducted five nuclear tests so far, alarmed the world last month by conducting successful tests of two intercontinental ballistic missiles. (Yonhap)