Korean non-life insurers’ overseas premiums surpass $759mn in 2023

[Source by each company]

The combined overseas premiums collected by South Korea’s four major non-life insurance companies surpassed 1 trillion won ($759 million) for the first time last year.

According to industry sources on Sunday, DB Insurance Co., Hyundai Marine & Fire Insurance Co., Samsung Fire & Marine Insurance Co. and KB Insurance Co. collected 1.04 trillion won in overseas premiums last year. The amount has nearly doubled over the past four years from 526.3 billion won in 2019.

DB Insurance collected 571.5 billion won in overseas premiums last year.

Since establishing its first overseas branch in Guam in 1984, DB Insurance operates four U.S. branches, including in New York, California, and Hawaii.

In 2015, the non-life insurer entered the Vietnamese market by acquiring a 37.3 percent stake in Post and Telecommunication Joint Stock Insurance Corporation (PTI), the country’s fifth-largest insurer.

In February, DB Insurance finalized the acquisition of Saigon-Hanoi Insurance Corp. (BSH) and Vietnam National Aviation Insurance (VNI).

With its active expansion into overseas markets, DB Insurance is receiving positive evaluations from global credit rating agencies.

At the end of last month, DB Insurance obtained an A+ rating from Standard & Poor‘s, marking an upgrade in credit rating for the first time in seven years since 2018.

“Based on the successful establishment in Vietnam, we plan to expand into neighboring countries with high growth potential such as Indonesia and Myanmar,” the company said.

Samsung Fire & Marine has also been preparing for overseas expansion by establishing subsidiaries in the U.S., Europe, Indonesia, Vietnam, and Singapore.

Although Korean insurers are increasing their overseas presence, they are still considered to be in the early stages given the volume of transactions.

According to the Korea Insurance Development Institute, the total direct premiums written by the four insurers amounted to 77.7 trillion won as of the end of 2022, with overseas direct premiums written accounting for only 1.2 percent.

Insurers had recorded losses in overseas insurance operations for 16 consecutive years from 2004 to 2020.

The Korean insurance industry is expected to become more aggressive in seeking breakthroughs in overseas business.

According to a survey of insurance company chief executive officers conducted by the Korea Insurance Research Institute last year, 10 out of 20 CEOs responded that they plan to expand their overseas business.

Among the target markets under consideration were Vietnam, with 36 percent, Indonesia with 28 percent, and India with 12 percent.