Korean insurers' overseas profit jumps on Hanwha Life's non-insurance gains

Core insurance earnings fall as existing units lose momentum

Hanwha 63 Building in Yeouido, Seoul (Hanwha Life)

South Korean insurers' overseas profit jumped nearly 24 percent last year, but the gains came largely from Hanwha Life's expansion into banking and securities, underscoring how non-insurance deals are reshaping the industry's overseas earnings while core operations lose momentum.

The Financial Supervisory Service said Thursday that local insurers' overseas operations posted a combined net profit of $197 million in 2025, up 23.8 percent from a year earlier. The figure covers 46 overseas units in 11 countries operated by 12 insurers, including four life insurers and eight non-life insurers.

Behind the headline growth, however, insurance operations weakened. Profit from overseas insurance businesses fell by $22.1 million from a year earlier to $128.6 million, hit by natural disasters and softer earnings at existing units. Excluding two newly added units and one divestment, existing overseas operations posted a $13.5 million decline in net profit, according to the FSS.

The gap was filled by Hanwha Life's newly consolidated financial businesses. Profit from financial investment units surged by $33.1 million to $34.2 million, while banking units added $29.3 million in profit, reflecting Hanwha Life's acquisition of US securities firm Velocity Clearing and Indonesia's Nobu Bank.

The shift was most visible among life insurers. Their overseas net profit rose 70.8 percent to $109.3 million, while non-life insurers saw profit fall 7.8 percent to $87.7 million due to natural disasters in Southeast Asia, including an earthquake in Myanmar and floods in Thailand.

The figures highlight a changing pattern in Korean insurers' overseas push. Rather than relying solely on traditional insurance, major players are increasingly using overseas acquisitions to build broader financial platforms.

Assets held by insurers' overseas operations more than doubled to $16.24 billion at the end of 2025 from $7.34 billion a year earlier, largely reflecting newly added businesses.