Rising overall costs and worsening investment environment… Insurance operating profit increases
Mirae Asset Life Insurance’s annual net income recorded 92 billion won, down 7% from the previous year. The increase in overall costs and the deterioration of the investment environment due to the corona had an impact. However, through a two-track strategy that emphasized insurance-type insurance and variable insurance, insurance operating profit increased from the previous year.
Mirae Asset Life Insurance announced on the 19th that it recorded annual net income of 92 billion.92 million won in 2020. This is a decrease of 7.94% from the previous year.
An official at Mirae Asset Life said, “The overall cost to revitalize the contracted business last year and increase new contracts has risen.” Said.
In addition, the official added, “However, the two-track strategy emphasizing guaranteed insurance and variable insurance and the expansion of the non-insurance sector have achieved achievements in line with the goal of achieving sustainable growth.”
Last year, Mirae Asset Life Insurance’s operating profit increased significantly. Last year’s income insurance premium was 4,975.8 billion won, up 24.3% from the previous year.
Last year’s new contract APE (paid premiums) recorded 75.4 billion won, an increase of 60.4% from the previous year. By product, guarantee-type APE increased 44.5% year-on-year to 3415 billion won, and variable investment type APE recorded 4127 billion won, up 77.5% year-on-year.
Variable insurance and retirement pension reserves also increased. As of the end of last year, the variable insurance reserves amounted to 12.500 trillion won, up 16% from the previous year, and the retirement pension reserves increased by 12% from the previous year to 5.8 trillion won.
The ratio of RBC (payment capacity) representing asset quality recorded 224.7%, down 14.1%p from the previous year.
Mirae Asset Life Insurance announced that it will pursue differentiated growth based on improvement and management efficiency through separation of plate making (separation of exclusive sales channels) this year, and will settle ESG (environmental, social, governance) management enterprise-wide.
An official at Mirae Asset Life said, “We will respond to the business environment that is expected to change rapidly after the corona through sales channels and digital innovation this year. We will prepare to maintain substantial growth with differentiated competitiveness.”
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