Korean life insurers' aggregate K-ICS ratio was broadly stable quarter on quarter at end-June 2026, with the post-transitional ratio declining 0.7 percentage points to 206.8%. This is according to estimates by CreditSights, which added that the underlying ratio rose 2.5 percentage points to 193.0%. The report noted wide differences among insurers, with post-transition ratios ranging from 138.3% at Hana Life to 396.4% at NongHyup Life.
Hanwha Life’s K-ICS ratio improved 5.9 percentage points quarter on quarter to 168.0%, supported by higher interest rates, foreign exchange effects and new-business contractual service margin. Management is targeting a year-end ratio above 165%. In contrast, Kyobo Life’s underlying ratio fell 5.0 percentage points to 155.4%, which CreditSights attributed to tighter actuarial assumptions and capital used for the SBI Savings-related acquisition. NongHyup Life’s ratio rose 21.8 percentage points to 396.4%, while KB Life’s dropped 28.8 percentage points to 223.4%.
CreditSights expects higher interest rates to benefit Korean life insurers broadly, although tighter actuarial assumptions remain a key near-term consideration for profitability and solvency. The report also highlighted continued reliance on transitional relief measures at some insurers, including Fubon Hyundai Life and KDB Life, whose pre-transition ratios remain well below their post-transition levels. CreditSights maintained its Market Perform recommendation on Hanwha Life and Kyobo Life, while noting that it does not formally cover Tong Yang Life, which is undergoing a further merger with ABL Life.