Life insurers' earnings tumble amid slowing economy

SEOUL, Feb. 22 (Yonhap) -- South Korean life insurers' earnings tumbled 55.5
percent in first three quarters of fiscal 2008 from a year earlier as the
slumping economy reduced demand for policies, an industry association said
Sunday.

A total of 22 local life insurance companies posted a combined net profit of
760.1 billion won (US$504.4 million) in the April-December period, compared with
1.71 trillion won the previous year, according to the Korea Life Insurance
Association. The companies close their books on March 31.
The association said the weaker earnings were due to the economic downturn, which
prompted people to buy fewer insurance policies and dented investment returns.
Insurance earnings have been on a downward trend. The companies logged a net
profit of 578.2 billion won in the first quarter but in the July-September period
their earnings declined to 169.1 billion won.
In the third quarter, 13 companies posted net losses, bringing total earnings to
a mere 13.7 billion won, the association said.
Market watchers say that if current trends continue, full-year earnings may reach
the lowest level since profits hit 1.59 trillion won in 2003 with the bursting of
the credit card bubble.
sooyeon@yna.co.kr
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