Life insurers' Q1 earnings soar 21 pct

SEOUL, Aug. 19 (Yonhap) -- Total earnings for life insurers in South Korea surged 21 percent in the first quarter of fiscal 2009 from a year earlier on higher investment gains, the financial regulator said Wednesday.

The combined net income of 22 local and foreign life insurers stood at 700.9
billion won (US$561.3 million) in the April-June period, compared with 578.2
billion won a year earlier, according to the Financial Supervisory Service (FSS).
"The surge is attributable to increased investment gains on the back of a
recovering stock market," the FSS said in a statement.
The insurers' total premiums, however, declined 4.2 percent on-year to 17.5
trillion won as the economic downturn cut into the number of new contracts, it
said.
Meanwhile, the net profit of non-life insurers plunged nearly 14 percent in the
fiscal first quarter on increased payment of claims, the watchdog said.
The combined net of 30 local and foreign non-life insurers came in at 557.9
billion won in the three-month period, compared with 646.5 billion won a year
earlier, the FSS said.
Insurance companies operating in the country start their fiscal year in April.