Korean Re ups 2021 net profit on decline in claims, reduced retrocession
Korean Re managed an 8.0% increase in net profits for 2021 on a decline in claims furthered by reduced retrocession purchase, FY2021 financial statements indicated.
Premiums rose 0.5% year on year to ￦8.49 trillion ($6.90 billion) on notable gains for fire coverage, engineering insurance, comprehensive coverage and long-term insurance (non-par).
Korean Re's own reinsurance purchases fell by 4.7% to render a 2.7% increase in net premium retained. Korean Re allowed its own net retention to fly in surety and personal accident, as well as in workers' compensation where major revenue decline points to a broader winding down of the book.
Claims fell 6.7% or ￦454 billion year on year, chiefly visible in the 67% year on year decline in claims in marine.
Measured straight against consolidated P&L figures, a loss ratio of 74.4% is down 5.75 percentage points from the prior year level.
Beyond the underwriting earnings, mark OPEX and admin costs down 6.1% year on year. Investment earnings are likewise up on the prior year period.
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