Kyobo Life's consolidated net profit for the first half of the year increased, thanks to the performance of subsidiaries like SBI Savings Bank. While the net profit from the insurance segment declined, new contracts, particularly in health insurance, contributed to growth in the contract service margin (CSM), a key indicator of future profitability.
On August 14, Kyobo Life announced that its consolidated net profit for the first half of the year reached 704.8 billion won, a 21.0% increase compared to the same period last year.
In contrast, standalone net profit fell to 478.6 billion won, down 18.2%. The insurance profit decreased by 10.3% to 227.5 billion won, influenced by the application of new actuarial guidelines in the second quarter.
Investment income also dropped 18.7% year-on-year to 403.8 billion won. Although the company maintained steady investment returns by reinvesting maturing assets into high-yield investments, losses from the valuation and disposal of financial assets due to rising market interest rates in the second quarter were reflected in the results.
The long-term profit base has expanded. The CSM for new contracts in the first half reached 806 billion won, a 51.5% increase from the previous year, driven by increased sales of protection insurance products such as health insurance.
As of the end of June, the CSM for existing contracts stood at 6.925 trillion won, up 11.0% from the same period last year and 6.4% from the end of the previous year.
* This article has been translated by AI.
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