GROWTH

We were able to achieve significant volume growth in 2019, while also delivering
bottom-line growth driven by enhanced capabilities.

Even though the world is regularly affected by natural catastrophes, Korean Re’s seasoned team is able to deliver strong underwriting results. Against almost every probable risk, we have been able to secure profit-based growth.

In addition, despite the ever-intensifying regulatory environment, our RBC ratio has always stayed above 200%, much higher than the local regulatory guidelines of 150%.

Backed by stable track records and capital strengths, we have upgraded our underwriting skills, thus making us capable of assuming risks at an optimal level and attaining a reduced combined ratio. Furthermore, by reinforcing our investment capabilities, we have secured a stable income stream from overseas bonds, and redirected assets into more profitable loans and alternative instruments, resulting in a stronger performance in 2019.

RBC Ratio

(Unit: %)

ENHANCING CAPABILITIES

Underwriting Results Improved

By fully utilizing our accumulated risk database and analysis expertise, we have strengthened underwriting and reduced losses to a significant degree. As a result, the total combined ratio declined by 0.5%p, to 100.1%, from a year earlier.

Domestic commercial lines drove down their combined ratio by 3.2%p, to 93.2% from the prior year by tightening risk management on their retention. Despite frequent natural catastrophes, international lines also reduced their combined ratio significantly by 5.5%p, to 99.1%.

As a result, underwriting results improved by KRW 9.8 billion year on year to KRW -40.2 billion.

Strong Investment Results

To strengthen investment performance, Korean Re brought in specialists from outside and restructured our investment portfolio, which led to a year-on-year 41.1% surge in investment income worth KRW 277.4 billion.

Additionally, our invested assets have grown at roughly 7% on average over the past 5 years, resulting in a 4% yield from our reinforced investment portfolio.

Further to that, portfolio rebalancing—raising the proportion of lucrative loans and alternative investment vehicles from 23.2% in 2018 to 26.6% in 2019—generated KRW 70.1 billion in gains, up 36.6% year on year.

Underwriting Results

(Unit: KRW billion)

Investment Income

(Unit: KRW billion)