Korean Reinsurance Company (003690) Q3 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 focus on profitability over market share.

• Overseas business now comprises 40.6% of the total portfolio, reflecting diversification and growth outside Korea.

Financial highlights

• Gross premiums for 3Q 2024 were KRW 5,641.3B, down 1.3% YoY; net premiums rose 3.0% YoY to KRW 4,429.5B.

• Revenue decreased 4.9% YoY to KRW 4,867.3B; operating income fell 25.2% YoY to KRW 283.0B.

• Net income dropped 24.1% YoY to KRW 222.4B, mainly due to changes in actuarial assumptions.

• Invested assets increased 18.7% YoY to KRW 10,360.5B; shareholders' equity up 4.2% YoY.

Outlook and guidance

• Reduction in long-term insurance premiums is part of a strategy to improve profitability.

• Continued focus on profit-oriented growth and stable asset management.