MARINE AND AVIATION

Our marine and aviation business recorded KRW 380.4 billion in gross written premium, which was down 26.5% from the previous year. The decrease was an inevitable outcome of portfolio restructuring to increase profitability.

Hull and energy premiums fell by 32.9% to KRW 243.8 billion, which is also attributable to the portfolio adjustment. Cargo insurance volume rose by 10.2% to KRW 90.8 billion, driven by an increase of war premiums due to an escalating risk of war in the Strait of Hormuz. Aviation insurance premiums declined by 36.7% to KRW 45.8 billion, due to the impact of overseas portfolio restructuring.

The marine insurance market in 2020 is expected to regain momentum on the back of increased shipbuilding orders in recent years, and benefit from market hardening and following rise in rates. The reinsurance market for this segment is anticipated to see an improved profitability driven by the growing primary market and declining commissions.

Korean Re will maintain its strategic focus on building a profit-oriented portfolio and disciplined underwriting. Furthermore, stable growth will be sought from builder’s risks of naval vessels, marine liability insurance, and fine arts, and efforts to find new growth engines such as offshore windfarm insurance will be continued.

Gross Written Premiums: Marine and Aviation
(Unit: KRW billion, USD million)

FY 2019 (KRW)

FY 2019 (USD)

FY 2018 (KRW)

FY 2018 (USD)

Hull

243.8

208.3

363.2

326.8

Cargo

90.8

77.4

82.4

74.2

Aviation

45.8

38.9

72.3

65.1

Total

380.4

324.6

517.9

466.1

Individual figures may not add up to the final shown due to rounding.
Gross Written Premiums: Marine and Aviation