The average risk-based capital (RBC) ratio of the Korean insurance industry improved to 273.9 percent at the end of March 2019 from 261.2 percent three months earlier. The improvement came as the available capital expanded by KRW 10.4 trillion to KRW 142.7 trillion on the back of positive net income results for the first quarter of the year and a
rise in other comprehensive income amid falling interest rates. The required capital increased by KRW 1.5 trillion to KRW 52.1 trillion as credit and market risk exposures expanded in step with a growth in assets under management.
The RBC ratio of life insurers jumped by 14.2 percentage points to 285.4 percent, while that of nonlife insurers went up by 9.5 percentage points to 252.1 percent. The ratios remained far above the statutory minimum requirement of 100% under the Insurance Business Act.