Despite an overall sluggish insurance industry, Kyobo Life Insurance is making headway against industry rivals with strong credit ratings, solid earnings reports and its long-standing support for education.
South Korea’s third-largest life insurer earlier this month received the best ratings of any local insurance company from global rating agencies, earning an A+ from Fitch and an A1 from Moody’s.
Kyobo first acquired the A1 rating from Moody’s in 2015, becoming the first local insurer to achieve that level, and has maintained it ever since.
Kyobo Life Insurance’s headquarters in central Seoul (Kyobo Life)
Moody’s said the firm’s strong business and financial soundness was behind its decision, along with its low financial leverage, according to Kyobo.
Likewise, in 2013 the firm became the first among its local peers to receive an A+ rating from Fitch and has maintained that rating for seven consecutive years.
The insurer’s stable performance in management and business is reflected in its robust earnings report this year.
While the local insurance industry has been sluggish all year, Kyobo reported an accumulated net profit of 689.3 billion won ($584.3 million) for the January-September period, which represented a gain of 21 percent on-year. Its operating profit also increased 16 percent on-year to 934.1 billion won in the cited period.
Regarding its support for the growth of education, tied to its long history of insurance products to cover education costs, this year the firm has decided to help provide opportunities for students seeking to learn fourth industrial revolution technologies.
The firm is leading a digital renovation movement in the insurance industry to prepare for the future. It is cooperating with startups and public institutions to adopt the new technologies it will need to survive in the era of the fourth industrial revolution.
For over 60 years, Kyobo has led the nation’s insurance industry with its client-centered services and management. Its combined assets now stand at 116 trillion won.
Kyobo Life was founded in 1958 under the name Daehan Education Insurance, reflecting founder Shin Yong-ho’s dedication to education. In 1995, the company changed its name to Kyobo Life Insurance.
By Jung Min-kyung (
mkjung@heraldcorp.com)
