Seoul: The capital adequacy ratio of insurance companies in South Korea saw an increase in the third quarter of last year compared to the previous quarter, recent data indicated. The average capital adequacy ratio of domestic insurance firms reached 210.8 percent by the end of September, up from 206.8 percent three months earlier.

According to Yonhap News Agency, the ratio signifies the amount of available capital in relation to required funds under the Korean Insurance Capital Standard (K-ICS). The improvement in the July-September period was driven by an increase in both available capital due to higher earnings and required capital.

In the third quarter, available capital under K-ICS rose by 14.1 trillion won (US$9.74 billion) on a quarterly basis, while required capital saw an increase of 4.3 trillion won during the same period, as reported by the financial watchdog.

The data further revealed that the average capital adequacy ratio of life insurers was 201.4 percent at the end of September, marking an increase of 0.5 percentage point from three months prior. Meanwhile, nonlife insurance companies experienced a more significant rise of 9.5 percentage points, reaching 224.1 percent over the same period.