Korean Reinsurance reported a net profit of 209.5 billion won for the first quarter of this year, more than double the amount from the same period last year. The increase was attributed to gains from overseas bond evaluations due to rising exchange rates and a base effect from last year's high-claim incidents.
The company announced on May 15 that its revenue for the first quarter reached 1.6981 trillion won, a 9.3% increase compared to the same period last year. The revenue growth was significantly influenced by increased evaluation gains from overseas bonds resulting from the rising exchange rates. As a global reinsurer, Korean Reinsurance has a considerable proportion of overseas investment assets and foreign currency-denominated assets, making it susceptible to fluctuations in exchange rates that can impact investment and evaluation profits.
The net profit of 209.5 billion won represents a 131.4% increase from the previous year. This increase reflects the base effect from significant claims incurred during the same period last year, which included losses of 121.5 billion won from three major incidents: the LA wildfires, the Myanmar earthquake, and the Yeongnam wildfires. Reinsurers can experience substantial quarterly profit volatility based on the occurrence of high-claim incidents such as natural disasters, large fires, and industrial accidents.
A representative from Korean Reinsurance stated, "The increase in performance was influenced by the base effect from last year's high-claim incidents. In the first quarter of this year, there were no major incidents leading to significant losses, and the increase in evaluation gains from overseas bonds due to rising exchange rates also contributed to revenue growth."
* This article has been translated by AI.
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