Non-life insurers ramp up corporate lending as banks pull back

Non-life insurance companies in Korea are increasingly expanding into corporate lending — a market long dominated by banks that are now gradually pulling back due to rising risks in other areas, company officials said Friday. For these insurers, corporate lending offers a new opportunity to offset declining profits caused by wildfires, torrential rains and other challenges they have had to cover so far this year. Data compiled from five major non-life insurers — Samsung Fire & Marine Insurance, DB Insurance, Hyundai Marine & Fire Insurance, KB Insurance and Meritz Fire & Marine Insurance — showed their outstanding loan balance in the first half of this year reached 72.93 trillion won ($52.37 billion). This figure represents a 9.4 percent increase from a year earlier and contrasts with a more than 30 percent decline in net profits from the insurance business over the same period. Company officials said corporate lending accounted for most of the 72.93 trillion won as the companies expanded into that market. For example, Samsung Fire & Marine Insurance increased its corporate loans byWeiter zum vollständigen Artikel bei Korea Times Weiter zum vollständigen Artikel bei Korea Times