South Korean insurers recorded higher profit from their overseas operations in 2025, but much of the increase came from banking and securities subsidiaries rather than traditional insurance businesses, according to regulatory data. Figures from the Financial Supervisory Service (FSS) cited by The Korea Herald show that the overseas arms of 12 Korean insurers generated a combined net profit of $197 million in 2025, up 23.8% from a year earlier. The tally covers 46 entities in 11 markets, including four life insurers and eight non-life carriers.

Underlying insurance performance weakened during the period. Net profit from overseas insurance operations declined by $22.1 million year over year to $128.6 million. The regulator cited catastrophe losses and softer results at existing units as key factors. Excluding the impact of two newly added entities and one divestment, established overseas businesses posted a $13.5 million drop in net profit. The data indicate an increasing reliance on non-insurance affiliates as Korean groups pursue earnings diversification offshore. The shift highlights how capital is being deployed between core risk businesses and broader financial services platforms in foreign markets.

Hanwha Life’s acquisitions alter overseas earnings composition

Hanwha Life Insurance was a major contributor to the change in earnings mix. The insurer’s consolidation of financial investment and banking subsidiaries overseas accounted for a significant portion of the sector’s profit growth outside Korea. Earnings from financial investment units rose by $33.1 million to $34.2 million, while banking subsidiaries contributed an additional $29.3 million in net profit. These results were associated with Hanwha Life’s acquisition of US securities firm Velocity Clearing and Indonesia’s Nobu Bank, which have been incorporated into the group’s overseas portfolio.

The impact was particularly visible in the life segment. Life insurers’ combined overseas net profit increased 70.8% to $109.3 million, supported by income from the newly consolidated non-insurance businesses. Non-life insurers moved in the opposite direction, with their overseas profit declining 7.8% to $87.7 million as carriers absorbed claims from natural disasters in Southeast Asia, including an earthquake in Myanmar and floods in Thailand.

Total assets held by insurers’ overseas operations more than doubled to $16.24 billion at the end of 2025, from $7.34 billion a year earlier. Most of this balance sheet growth stemmed from the inclusion of non-insurance financial entities rather than organic expansion of insurance operations, suggesting that Korean groups are building multi-line financial platforms offshore. For Korean insurance executives, the figures point to an overseas strategy that is shifting from a primarily insurance-focused expansion model to a broader financial services approach, with implications for group risk profiles, regulatory treatment, and capital planning across jurisdictions.

Domestic premiums projected to rise through 2029

While overseas earnings are being reshaped by acquisitions and consolidation, the domestic market is projected to record moderate premium growth over the medium term, supported by demographic change and demand for protection and retirement products. GlobalData forecasts that South Korea’s insurance market will grow at a compound annual growth rate (CAGR) of 3.4% from KRW218.3 trillion (US$167.1 billion) in 2025 to KRW249.7 trillion (US$191.2 billion) in 2029, based on direct written premiums (DWP).

GlobalData also expects South Korea’s life insurance market to expand over the same period, with DWP forecast to reach around KRW206.2 trillion (US$157.9 billion) by 2029. This implies a CAGR of about 3.1% from KRW182.7 trillion (US$139.8 billion) in 2025, reflecting ongoing demand for protection, savings, and retirement-focused products as the population ages. On the non-life side, GlobalData projects that the country’s general insurance segment will increase from KRW33.7 trillion (US$25.1 billion) in 2025 to more than KRW39.1 trillion (US$29.1 billion) in DWP by 2029. This would correspond to a CAGR of roughly 3.8%, supported by compulsory lines, growing awareness of liability exposures, and continuing need for property and catastrophe cover.

The overseas and domestic figures suggest that South Korean insurers are navigating two parallel shifts: a structural change in the composition of overseas earnings, where non-insurance financial units are playing a larger role, and a gradual expansion of the home market anchored by demographic trends and steady growth across both life and general insurance. The data underline the importance of balancing group exposure between underwriting-based income and fee or interest-based earnings, while monitoring how regulatory and capital frameworks respond to more diversified financial group structures.