S. Korean insurers’ RBC ratio rises for second consecutive quarter

[THE INVESTOR] South Korean insurance companies’ rick-based capital ratio increased for the second consecutive quarter, data showed Aug. 24.

According to the Financial Supervisory Service, the average RBC ratio of local insurers came to 288 percent at the end of the second quarter, up 14.1 percent from the previous three-month period.

The average RBC ratio of local insurers had been declining since September 2014, when it stood at 305.7 percent. However, the average began to pick up this year, rising from the 267.1 percent at the end of last year to 273.9 percent at the end of March.

The data showed that life insurers had higher RBC ratio than nonlife insurers. The figure for life insurers rose 12.4 percentage points from the previous quarter to 297.1 percent, while that of nonlife insurers rose 17.7 percentage points to 269.1 percent.

Under local regulations, insurance companies are required to maintain RBC ratios above 100 percent, and the FSS recommends a minimum ratio of 150 percent.

By Choi He-suk (cheesuk@heraldcorp.com)