Korean Re, South Korea’s specialist reinsurance company, reported higher profit for the first half of 2026, supported by improved reinsurance performance and stronger investment results.
The reinsurer’s revenue from insurance and investment increased 4.2% year on year to KRW 3,652.1 billion in the three months to June 2026, compared with KRW 3,503.5 billion in the same period of 2025.
The company attributed the increase to growth in overseas insurance revenue and higher valuation gains on foreign bonds following the rise in foreign exchange rates. Korean Re said the associated increase in insurance finance expenses related to foreign currency liabilities largely offset the impact of foreign exchange movements on profit and loss.
Korean Re reported a combined ratio of 87.9% for the period, improving from 88.1% a year earlier. The company said its reinsurance business strengthened its profit base through improved P/F and a reduction in large losses.
In terms of large losses, Korean Re saw no major claims in the quarter. The P&C large loss claims budget for the quarter was KRW 56 billion, with actual losses totalling just KRW 18.2 billion, so coming in KRW 37.8 billion below budget.
Insurance profit increased 1.1% year on year to KRW 161.5 billion, from KRW 159.7 billion in the first half of 2025. Investment profit was KRW 304.4 billion, up KRW 210.7 billion, or 224.9%, from KRW 93.7 billion a year earlier. Korean Re said gains on stocks increased by KRW 205.6 billion, supported by the strong performance of the KOSPI index.
Operating income rose 83.9% to KRW 465.9 billion, compared with KRW 253.4 billion in 2025. Net income increased 77.6% to KRW 347.3 billion from KRW 195.5 billion, reflecting improvements in both insurance and investment profit.
Korean Re’s invested assets stood at KRW 12,106.4 billion at the end of June, up 12.4% from KRW 10,771.2 billion a year earlier. Total assets increased 10.1% to KRW 14,329.9 billion, while shareholders’ equity rose 14.5% to KRW 3,985.1 billion. The company’s annualised return on equity was 18.2%, compared with 11.3% in the same period of 2025.
