Korean Re became the 10th largest reinsurer in the world
Korean Re ranked 10th in the world in terms of gross premiums written (GPW) in 2020. Our global ranking was up one notch from the previous year, with our GPW increasing to USD 7,777 million according to AM Best, a global credit rating agency. Korean Re is the only local financial company in Korea that ranks among the global top 10 players in its industry.
One of the key drivers for the growth was our global business expansion backed by effective risk management. Korean Re now has 12 presences across the world, and six of them have been established over the last six years. This effort to expand into global markets resulted in steady growth of our overseas business. In 2020, our overseas business accounted for 26% of the total GPW, up from 21% in 2015. In addition, we have recently obtained a license for a reinsurance intermediary in the U.S., which will start operations later this year.
Korean Re has also been keen to portfolio management in a bid to enhance its profitability. As a result, we were able to achieve robust business results with a combined ratio of 99.6% in 2020 according to the calculation of AM Best in spite of a challenging business environment amid the pandemic. It is also noteworthy that Korean Re was the only reinsurer that recorded a combined ratio of below 100% among the 20 largest reinsurers in the world. The average combined ratio of the global top 20 reinsurers was 105.7% in 2020.
Munich Re took the number one spot, followed by Swiss Re, Hannover Re, and SCOR. To achieve greater precision in its annual ranking of global reinsurance companies, AM Best said this year’s analysis included only year-end gross reinsurance premiums written, removing any primary premiums.
Since Korean Re joined the ranks of the world’s top 10 reinsurers for the first time in 2011, it has achieved stable business growth, with its ranking remaining mostly steady, close to the 10th spot. We will continue our effort to explore new markets and execute effective portfolio management strategies so that our competitive strength can be maintained and even enhanced among the leading global reinsurers.