Seoul: Insurance companies in South Korea saw their combined net profit rise 9.5 percent in the first quarter from a year earlier on the back of higher gains on their investments, data showed Wednesday. The combined net profit of 22 life insurers and 30 non-life insurance companies came to 4.48 trillion won (US$2.97 billion) in the January-March period, marking an increase of 390 billion won from the previous year.

According to Yonhap News Agency, the on-year increase is attributed to a gain in investment gains such as asset sales, as noted by the financial watchdog. Life insurance firms experienced a notable surge in net profit, soaring 40.6 percent on-year to 2.38 trillion won in the first quarter. However, non-life insurers saw a decline, with their net profit dipping 12.3 percent to 2.1 trillion won during the cited period.

The companies' insurance premium income rose to 66.49 trillion won in the first quarter, increasing by 6 percent, or 3.76 trillion won, from a year earlier. Despite these gains, their return on assets stood at 1.33 percent at the end of March, a slight drop of 0.06 percentage points from the previous year. Additionally, their return on equity slipped 1.89 percentage points to 10.03 percent.

The total assets of these insurance companies amounted to 1,353 trillion won as of the end of March, reflecting an increase of 0.7 percent, or 9.8 trillion won, from a year earlier, according to the data provided.