LATEST NEWS

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We thank all our clients and business partners for their strong support and excellent cooperation. The trust of our clients in Korean Re and its European subsidiary was an integral part of this successful renewal. We are here to serve you and look forward to grow together with you as a long-term partner across all lines of business.

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While working in the office, all employees are required to wear masks as well. Business trips and all other face-to-face contacts and meetings are banned. Head office entry/exit point controls and self-quarantine measures have been beefed up to protect our workplace safe from external harms. Also, we have provided masks to all employees and installed sanitizers around the office, while all employees are in full compliance with basic requirement rules for personal hygiene and “social distancing”. Our overseas branches and offices are taking necessary actions following their local authority’s guidelines, and we at the head office have been constantly updated on any specific developments out there. Fortunately, until now, we have seen no infected cases among Korean Re employees.

As of now, the spread of the virus appears to wane in Korea, but we will not let our guards down. Rather, we will keep ourselves more vigilant under the leadership of our contingency management committee. On the business front, multiple approaches are deployed to maintain our stability. In our view, there are no immediate impacts on reinsurance operations both on domestic and overseas businesses as communicable diseases or losses from pandemics are typically excluded from standard policies. Sluggish economic growth and inactive in-person sales of personal lines insurance products may bring top-line growth lower than expected. Many analysts in Korea have positive views on underwriting results given that auto and medical indemnity insurance claims have decreased due to lower hospital visits and less driving.

On the basis of our stress tests, there is no direct impact on investment side, but various measures are being taken to manage market risk proactively. As you know, more than half of our investment portfolio is composed of bond with very limited stock exposure. Korean Re’s investment portfolio is sound and stable, and we will keep monitoring the market’s behaviors and take timely actions when needed for any upcoming changes. Impact on reinsurance side is projected to be very limited. If COVID-19 situation is prolonged, however, our investment yield may go down slightly, but not seriously. Korean Re has a sound bond portfolio, of which fundamentals are robust enough to sustain our risk appetite and tolerance.

Even in cases, worse than the worst-possible financial crisis, let alone the current COVID-19 situation, our capacity is sufficient to fully meet the requirement level of solvency. Korean Re will ensure in our best effort that our clients are to be served with confidence and stability. Our operational direction and shareholder-friendly policy will remain unchanged. Any potential changes related to COVID-19 circumstances will be communicated to all stakeholders as quick as possible. Also, we will closely watch economic indicators which are aligned with our business results, and any impacts likely to come from deterioration will surely be reported to our clients and partners.

If you have any questions, do not hesitate to contact us. We believe that all of us can overcome the present challenge, and get back to our normal life and business. We wish all of you, your loved ones, as well as your employees, good health and strength to carry on.

All of this has been possible because of our clients, existing and new ones, who have recognized the trusted brand and capabilities of Korean Re and its new European subsidiary. We would like to thank all our clients and business partners for contributing and making this successful renewal possible. We are here to serve you and look forward to building and expanding long-lasting, value-adding business relationships as a true multi-line reinsurer across all lines of business.

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Markus Eugster and Michael Hinz also attended panel discussions, for further details please refer to the following links:

With the rating announcement, S&P Global Ratings said that Korean Re Switzerland is set to receive strong support from the group in operations, underwriting, reinsurance and risk management. The rating agency also shared a view that the Swiss subsidiary is fully integrated with the group in terms of operations and is integral for the group’s strategy to grow its overseas business. The ‘A’ rating means a great deal to Korean Re Switzerland because a good credit rating is one of the most important elements for a new entity in attracting profitable business. Korean Re welcomed the news that its Swiss subsidiary obtained the ‘A’ rating. CEO Jong-Gyu Won of Korean Re said, “It is definitely great news, which heralds a good start for Korean Re Switzerland. I expect our new entity to become a major hub that brings growth to our international business.” Korean Re plans to increase the portion of its overseas business to 80 percent by 2050 under Vision 2050, which was announced in 2014. Currently, Korean Re’s overseas business accounts for 24.7 percent of its total revenue (gross written premiums), and no other domestic financial company in Korea beats that figure. This clearly reflects Korean Re’s strong commitment to growing its overseas business based on the recognition that expanding into the global market is not a matter of choice but a matter of survival. Indeed, Korean Re has made great strides in expanding its global presence. In 2015, it entered the Lloyd’s market in London – a global insurance hub by establishing Korean Re Underwriting Ltd. It also opened a branch in Labuan, Malaysia in 2017 and a branch in Dubai, the UAE in 2018. Most recently, Korean Re Switzerland started operations in June 2019, with the aim of expanding Korean Re’s presence in Europe – the world’s second largest single insurance market after the United States.

Markus A. Eugster, CEO of Korean Re Switzerland, said, “Together with our teams I look forward to leading the growth of Korean Re's successful European business by offering consistency and continuity to our clients and partners.” Korean Re has been making an all-out effort to increase its global market share since it announced Vision 2050 in 2014 as a long-term strategy to boost its global growth. CEO Jong-Gyu Won of Korean Re has always stressed the importance of going global since he took office in 2013. Under his leadership, Korean Re has made great strides in expanding its global presence. In 2015, it entered the Lloyd’s market in London by establishing Korean Re Underwriting Ltd. It also opened a branch in Labuan, Malaysia in 2017 and a branch in Dubai, the UAE in 2018. The Swiss entity is Korean Re’s second subsidiary in Europe following Korean Re Underwriting Ltd. ,the corporate member at Lloyd’s of London. The Swiss subsidiary will play a critical role in effectively implementing Korean Re's growth strategy in Europe. CEO Won said, “I am pleased to see another progress in our efforts to expand into the global markets. It will be a major breakthrough in our struggle to overcome the challenge of limited domestic market growth. With the opening of the Swiss subsidiary, we can better serve our European clients and are confident that our long-term growth strategy will prove to be successful.”

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