insurance firms-capital adequacy

Insurers' capital adequacy ratio up in Q1

SEOUL, June 19 (Yonhap) -- The capital adequacy ratio of insurance companies in South Korea rose in the first quarter of the year from the previous quarter due largely to a rise in available capital, data showed Friday.

The average capital adequacy ratio of domestic insurance firms came to 216.1 percent as of end-March, up from 212.3 percent three months earlier, according to the data from the Financial Supervisory Service.

The ratio refers to the amount of available capital compared with required funds under the Korean Insurance Capital Standard (K-ICS).

The rise in the January-March period was attributed to a rise in both available capital and required capital following increased earnings and gains in stock holdings.

Available capital under K-ICS rose 26.9 trillion won (US$17.6 billion) on-quarter in the first quarter, while required capital increased 10.1 trillion won over the cited period, according to the financial watchdog.

The average capital adequacy ratio of life insurers stood at 207.7 percent as of end-March, up 1.8 percentage points from three months earlier, while that of nonlife insurance companies rose 7.8 percentage points to 229.7 percent over the cited period.

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