KOREAN REINSURANCE COMPANY - COMPANY INTELLIGENCE BRIEF

1. BUSINESS OVERVIEW

[TRANSLATION NOTE: Company name and business description based on Korean company name "코리안리"]

Korean Reinsurance Company is South Korea's primary reinsurance provider. As a reinsurer, the company assumes insurance risk from primary insurers, providing capacity and risk diversification to Korea's insurance industry. The company operates through a consolidated structure with significant investment operations alongside its core reinsurance business. Its balance sheet shows substantial insurance contract liabilities (KRW 9,103 billion as of December 2024) backed by a diversified investment portfolio across fair-value financial assets (KRW 2,592 billion and KRW 4,822 billion in different categories) and amortized cost financial assets (KRW 2,566 billion).

2. FINANCIAL TRENDS

Korean Re demonstrates consistent growth with total assets expanding 9.1% year-over-year to KRW 13,160 billion (2024) from KRW 12,066 billion (2023), representing 19.4% growth over the two-year period from KRW 11,017 billion (2022). The company reported pre-tax profit of KRW 399 billion in 2024, up 10.3% from KRW 361 billion in 2023, with net income rising 11.6% to KRW 317 billion from KRW 284 billion.

The balance sheet shows a leverage ratio (liabilities-to-assets) of 73.8% in 2024, slightly elevated from 73.0% in 2023, primarily driven by insurance contract liabilities which increased 11.4% to KRW 9,103 billion. Total equity strengthened to KRW 3,453 billion (2024) from KRW 3,253 billion (2023), with retained earnings growing to KRW 2,323 billion. The company also increased paid-in capital from KRW 83 billion to KRW 97 billion during the year.

3. OWNERSHIP STRUCTURE

Ownership data is not provided in the available financial statement excerpts. Foreign ownership percentage and controlling shareholder information cannot be determined from the DART filing data supplied.

4. KEY RISKS

Investment Portfolio Volatility Risk: With KRW 7,413 billion (56% of total assets) held in fair-value financial assets subject to market value fluctuations, the company faces significant mark-to-market exposure. The sharp increase in OCI fair-value assets from KRW 2,753 billion to KRW 4,822 billion indicates substantial unrealized gains vulnerable to interest rate or equity market reversals.

Catastrophic Loss Exposure: As Korea's national reinsurer carrying KRW 9,103 billion in insurance contract liabilities, the company concentrates exposure to Korean natural catastrophes and large-scale industrial risks that could trigger claims significantly exceeding normal loss ratios.

5. INVESTMENT CONSIDERATION

Korean Reinsurance offers exposure to Korea's insurance sector growth with demonstrated profitability and capital strength, though investors should assess concentration risk in the Korean market and sensitivity to domestic interest rate movements affecting its substantial fixed-income portfolio.