Kyobo Life Insurance continued to improve its performance in the first quarter of this year, driven by increased sales of health and protection insurance and rising investment profits.
On May 15, Kyobo Life announced that its consolidated net profit for the first quarter was 458.7 billion won, up 173.3 billion won, or 60.7%, from 285.4 billion won in the same period last year. The standalone net profit was 330.1 billion won, a 4.7% increase from 315.3 billion won a year earlier.
Both insurance and investment profits contributed to this performance improvement. The insurance profit for the first quarter was 184.8 billion won, a 13.3% increase from 163.1 billion won in the same period last year. The steady growth in sales of protection products, including health insurance, and the introduction of new products tailored to customer demand, such as health insurance for seniors and chronic patients, enhanced product competitiveness.
Investment profits also showed improvement. The investment profit for the first quarter was 259.4 billion won, up 7.1% from 242.3 billion won a year earlier. The company responded to interest rate volatility by actively trading long- and short-term bonds and preemptively incorporating high-quality assets. A rebalancing strategy that adjusted the stock and alternative investment portfolio according to market conditions also contributed to the increase in investment profits.
The foundation for future profits has also expanded. The standalone new contract CSM (Contractual Service Margin) for the first quarter reached 415.9 billion won, a 61.6% increase from 257.3 billion won in the same period last year. This growth was influenced by the increase in sales of protection insurance, leading to a rise in profitable new contracts.
Cumulative CSM also showed an upward trend. By the end of the first quarter, the cumulative CSM was 6.6869 trillion won, up 2.7% from 6.5110 trillion won at the end of last year. This increase reflects the rise in new contract CSM as well as the effects of stock price increases related to variable insurance.
* This article has been translated by AI.
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