EARNINGS DROP AT KOREAN LIFE ASSURERS

The South Korean life sector has recorded a 19% fall in nine-month earnings to December 31, after increasing reserves for potential claims. Net income at leading player Samsung Life and its 13 rivals fell to a total of 897.8bn won from 1.11tn won in the same period during 2005, according to figures released today by the country’s Financial Supervisory Service. The country’s assurers set aside an additional 377.4bn won during the nine-month period, up from 86.8bn won for the same period the previous year, after the government introduced stricter rules on reserving requirements. For the country’s top 22 assurers, combined earnings were off 14.6% to 1.2tn won. Premium income for this group during the first three quarters was 49.3tn won, up 8.6% year on year. The market share of foreign life assurers was up 2.2 points to 18.9%, while smaller local assurers saw their market share up 1.5 points to 18.3%. This growth was attributed to increased sales of variable insurance polices and bancassurance.