Korean risk-based capital ratios rise

September 20 2018 by InsuranceAsia News Staff

The risk-based capital ratio of most insurance firms in Korea increased during the second quarter of the year.

The modest leap in profits and investment income was among the reasons for the ratio’s improvement, data showed.

According to the statistics from the Financial Supervisory Service (FSS), the risk-based capital ratio — or an actual solvency capital divided by the minimum solvency capital required — of insurance companies was at 253.5% as of the end of June.

The figure is up 3.6% from the previous quarter.

The financial regulator also reported that the ratio for life insurers rose to 263.3% from 258.2% and that the ratio for non-life insurers also increased to 234.8% from 233.7%.

The FSS pointed out that the ratios were well above the regulatory standard of 100%. In a statement, the agency encouraged insurers to shore up their financial stability in a pre-emptive manner.

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