Kyobo Life Insurance Co. reported consolidated net profit of 752.3 billion won for 2025, a 12.4% increase from 669.3 billion won the previous year, with separate financial statements showing net income of 763.2 billion won, up 9.2% from 698.7 billion won.
According to The Asia Business Daily’s report, the insurer said the year-on-year earnings growth was driven by higher investment income and continued expansion of protection-focused products, including health coverage, amid volatility in domestic and overseas markets. Investment income reached 670 billion won in 2025. According to Kyobo, this reflected a portfolio strategy that included bond swaps aligned with interest rate movements, acquisition of fixed income and credit assets the company views as higher quality, and adjustments to exposure in listed equities and alternative investments. The approach was described as aiming to respond to the prevailing rate environment while maintaining duration and yield characteristics suited to long-term liabilities.
Kyobo said it has tried to reduce reliance on one-off gains such as large bond disposals, and instead shift its earnings mix toward recurring investment returns over multiple years. The company also highlighted risk and capital management measures, including adherence to asset-liability management (ALM) principles and efforts to limit capital volatility stemming from interest rate changes. Insurance profit for 2025 was 391.6 billion won, supported by what the company described as continued growth in protection-type lines. Kyobo said sustained new business in these segments has been an important factor in the pattern of earnings emergence under the IFRS 17 accounting regime.
New Contractual Service Margin (CSM) on a separate basis amounted to 1.2781 trillion won in 2025, roughly in line with the prior year. The company said this consistency in new CSM reflects ongoing sales of protection-focused products, which generally involve longer coverage periods and more predictable service patterns under IFRS 17. Accumulated CSM at year-end 2024 stood at 6.511 trillion won, an increase of 1.1% from 6.4381 trillion won at the end of the previous year. The change in the CSM balance indicates a modest expansion in the stock of future unearned profits embedded in in-force contracts, an indicator closely monitored by analysts and regulators when assessing long-term earnings capacity and solvency.
Kyobo’s 2025 results were reported against a backdrop of a South Korean life insurance sector expected to return to growth after a contraction in 2023, according to research from GlobalData. The firm forecasts that the domestic life insurance market will expand at a compound annual growth rate (CAGR) of 3.1% from 182.7 trillion won (US$139.8 billion) in 2025 to 206.2 trillion won (US$157.9 billion) in 2029, measured by direct written premiums. GlobalData’s Insurance Database indicates that after a 9.2% decline in premiums in 2023, the sector is expected to regain momentum in 2024 and 2025, supported by macroeconomic recovery and demographic changes, particularly a rising share of older policyholders who favour whole-life and retirement-oriented products.
Pension insurance remains the largest line in the Korean life sector. It is projected to account for 39.7% of direct written premiums in 2024 and recorded growth of 4.7% that year, according to GlobalData. The line has been supported by financial market conditions and higher investment returns, which have fed through to pension balances and annuity expectations. The National Pension Service (NPS) reported a preliminary return of 9.2%, or 97 trillion won (US$70 billion), on its investments over the first nine months of 2024, driven largely by foreign equity performance. That result has encouraged additional flows into pension arrangements, including private pension products provided by life insurers. Pension insurance is forecast to grow at a CAGR of 4.7% between 2025 and 2029.
Whole life products are estimated to represent 12.4% of life premiums in 2024 and are expected to grow at a CAGR of 1.2% through 2029, reflecting demand from middle-aged and older households seeking lifetime coverage and legacy planning tools. Endowment insurance is projected to account for about 11.1% of premiums in 2024 and grow at 1.4% annually over 2025-2029, supported by customers who prefer guaranteed-type products that can offer returns above deposit rates. According to the Bank of Korea, the average interest rate on new deposits was 3.6% as of February 2024, down 4 basis points from the previous month. The lower rate environment has supported demand for endowment products as long-term savings instruments. Term life, general annuity, and other life lines are expected to make up the remaining 36.9% of direct written premiums in 2024.
Demographic change remains a structural driver of the Korean market. GlobalData estimates that individuals aged 65 and over will account for 20.3% of South Korea’s population in 2025, with the share projected to rise to 39.4% by 2050. This shift is expected to sustain demand for whole-life, pension, long-term care, and health-related protection products, and to influence pricing, underwriting standards, and capital requirements.
At the regional level, the Asia-Pacific (APAC) life insurance market is forecast to grow faster than South Korea on average. GlobalData projects APAC life premiums to increase at a CAGR of 7.3%, from an estimated US$1.2 trillion in 2025 to US$1.6 trillion in 2029. The region is expected to account for 32.4% of global life insurance written premiums in 2025. GlobalData notes that mature markets such as South Korea, Japan, Hong Kong, and Taiwan are increasing their focus on senior and retirement products. Japan and South Korea already have more than 20% of their populations aged 65 and above in 2025, with this share projected to reach 32.3% in Japan and 30.8% in South Korea by 2030.
