Korean Reinsurance Company (003690) Q2 2024 earnings summary

Executive summary

• Ranked 13th globally by gross premiums in 2022, with S&P credit rating outlook upgraded to A (Positive) in Feb 2024.

• Maintains a leading position in the Korean non-life reinsurance market, with a strategy focused on profitability and selective underwriting.

• Overseas business expansion continues, with 31.5% of the portfolio from overseas in 2023, up from 24.7% in 2018.

Financial highlights

• 1H 2024 gross premiums: KRW 3,799.3B (-0.6% YoY); net premiums: KRW 2,973.1B (+3.3% YoY).

• Revenue: KRW 3,329.0B (-2.1% YoY); operating income: KRW 202.8B (-40.8% YoY); net income: KRW 155.4B (-42.2% YoY).

• Invested assets grew 16.1% YoY to KRW 9,972.0B; total assets up 15.5% YoY to KRW 12,249.5B.

• ROE dropped to 9.4% from 17.6% YoY.

• Dividend payout ratio maintained above 30%, with dividend yield at 6.8% in 2023.

Outlook and guidance

• Revenue recognition patterns revised from 2H 2023, impacting net income.

• Focus on profit-oriented growth, selective underwriting, and overseas expansion.

• Continued diversification of portfolio by line of business and region.