Seoul: The capital adequacy ratio of insurance companies in South Korea saw an increase in the second quarter compared to the previous quarter, as indicated by recent data.

According to Yonhap News Agency, the average capital adequacy ratio of domestic insurance firms reached 206.8 percent by the end of June, up from 197.9 percent at the end of the previous quarter. This ratio measures the amount of available capital in relation to the required funds as per the Korean Insurance Capital Standard (K-ICS).

The increase during the April-June period was largely due to a rise in available capital driven by improved earnings and new fund raisings, while the required capital saw minimal change. Specifically, available capital under K-ICS rose by 11.3 trillion won (US$8.19 billion) on a quarterly basis in the second quarter, whereas the required capital increased by 60 billion won over the same period, based on information from the financial watchdog.

Breaking it down further, the average capital adequacy ratio for life insurers was 200.9 percent as of the end of June, marking a rise of 10.2 percentage points compared to three months prior. Meanwhile, nonlife insurance companies experienced an increase of 7 percentage points, reaching a ratio of 214.7 percent during the same timeframe.