S. Korean insurers' loan delinquency rate dips in Nov.

insurers-delinquency ratio


SEOUL, Jan, 12 (Yonhap) -- The loan delinquency ratio of South Korean insurers
declined in November 2009 as the amount of new overdue loans fell amid an
economic recovery, the financial watchdog said Tuesday.

The average default ratio of loans extended by local life and non-life insurers
came in at 3.51 percent as of the end of November, down from 3.55 percent the
previous month, according to the Financial Supervisory Service.
The delinquency ratio had been on the rise since September 2008 as more companies
held overdue debts in the aftermath of the global financial meltdown and its
subsequent economic downturn. But the overall default rate has declined since
June 2009 as insurers have written off problem loans and the amount of new
delinquent loans dropped.
The total amount of insurer loans reached an outstanding 84.4 trillion won
(US$75.2 billion) as of the end of November.
The delinquency ratio for household loans extended by insurers came in at 3.04
percent as of the end of November, down from 3.09 percent from a month earlier.
That of corporate loans shed 0.03 percentage point on-month to 4.65 percent, the
watchdog said.
The South Korean economy grew 3.2 percent in the third quarter from three months
earlier, the fastest expansion in more than seven years, on improving domestic
demand and brisk exports.
sooyeon@yna.co.kr
(END)

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