(Seoul=Yonhap Infomax) Soo Yong Lee = Dongyang Life Insurance Co. has restored its financial soundness through strengthened risk management and ongoing capital enhancement efforts since joining Woori Financial Group.


According to the insurance industry on the 24th, Dongyang Life’s risk-based capital ratio under the Korean Insurance Capital Standard (K-ICS) is estimated at approximately 172.7% for the third quarter.


This marks a 45.5 percentage point improvement from the first quarter’s 127.2%.


K-ICS is a key indicator of an insurer’s ability to pay policyholder claims in a timely manner. The third-quarter figure exceeds the Financial Supervisory Service’s recommended threshold of 130%, underscoring Dongyang Life’s stable financial position.


Since its inclusion in Woori Financial Group in July, Dongyang Life has prioritized capital adequacy, restructuring its asset portfolio and managing duration to improve its risk profile.


Required capital for the third quarter stood at 2.2828 trillion won ($1.75 billion), down 14.3% from the first quarter, reflecting more efficient management of interest rate and credit risks.


The company has also continued to bolster its capital base. In May, Dongyang Life issued $500 million in foreign currency subordinated bonds, followed by an additional 200 billion won ($153 million) in subordinated bonds on the 4th of this month, further strengthening available capital.


Market observers view Dongyang Life’s improving financial soundness as the beginning of structural stabilization.


Kyobo Securities Co. noted in a recent report that, over the long term, Dongyang Life is expected to benefit from increased synergies as a Woori Financial Group subsidiary, with the gradual rise in its K-ICS ratio seen as a positive development.


A Dongyang Life official stated, “Our goal is to maintain a stable capital ratio despite regulatory tightening and market volatility,” adding, “We will continue to reinforce capital management and risk responsiveness to ensure a robust financial structure.”


Meanwhile, Dongyang Life’s third-quarter net profit fell 55% year-on-year due to changes in the age-based loss ratio system, but its cumulative Contractual Service Margin (CSM) balance rose 4.7% to 2.8 trillion won ($2.15 billion).


Dongyang Life aims to leverage its improved financial soundness to advance risk management systems and strengthen capital stability, laying the foundation for long-term growth driven by group synergies.


sylee3@yna.co.kr

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