[Korea gimmingyeong financial newspaper reporter], while the United States recently raised its benchmark interest rate went to intersect the domestic insurance industry huibi. The proportion of investing in bonds because the influence of the nature of the US benchmark rate of the large insurance industry.
The interest rate determinate debt ratio may be high, expect the asset management profit rises when interest rates rise. Accordingly, the secondary station is also reduced margins of insurance companies is expected to increase yields.
Depending on the past few years, low interest rates will persist even heard of jjogeura investment yield insurance company. According to the disclosure of the Life Insurance Association margin to average assets under management last year, 11 of the 25 domestic insurers month it is only 4.0%. As a result, insurers are expected to lower the interest rate and staged a profitability.
The rate hike, but also very nice to the eye does.
Available-for-sale bonds due to the nature of the market should be evaluated according to the bond interest rate fluctuations based on US interest rates rise, bond interest rates rise bond losses are inevitable. In the insurance industry, the domestic bond debt losses when interest rates rise 50bp foresee to reach 10 trillion.
Bond insurers to invest in bonds are classified as available-for-sale, held-to-maturity bonds can be sold to middle and held to maturity. Held-to-maturity bonds are rated based on acquisition cost but the value of available-for-sale bonds is to reflect the valuation to reflect the actual market value on a quarterly basis in the financial statements.
Over the coming era of low interest rates insurance companies have changed to sell bonds to extend the maturity bonds valuation of bonds available. Hanwha Life 15.7 trillion won in 2014, ING Life is sized April 6368 1 trillion 201.5 billion won. But I will blow this time of uncertainty is deepened and interest rates are evaluated and losses on available-for-sale bonds rise.
Compared to the 2021 IFRS17 (the new international accounting standards) and introduced a count of one another burden caused to the recapitalization needs larger insurers.
This was even faster pace recapitalization of insurers.
Hanwha life is preparing for the hybrid securities issued by the scale 500 billion won by the end of this month. Hungkuk Life acquired last year Hungkuk hybrid securities issued 92 billion won of the fire size (perpetual) it is also reportedly to issue subordinated debt of about 100 billion won this month. Tong Yang also announced that it will expand its third-party allocation capital increase 523.8 billion won in the amount of capital in a way doorstep recent shareholder group.
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