Insurers’ loan balances decline in Q1 as regulators tighten risk oversight

May 27, 2026, 08:23 am

		0
A chart released by the Financial Supervisory Service shows the status of insurance companies’ loan receivables. /Financial Supervisory Service

South Korean insurance companies saw their outstanding loan balances decline slightly in the first quarter of 2026, while delinquency rates also edged down, indicating modest improvements in overall asset quality.

According to data released Tuesday by the Financial Supervisory Service (FSS), insurers’ total loan receivables stood at 264.1 trillion won ($191 billion) at the end of the first quarter, down 0.4% or 1.1 trillion won from the previous quarter.

Household loan balances reached 134.5 trillion won, up 0.4% from the previous quarter, while corporate loan balances fell 1.3% to 129.5 trillion won.

During the same period, the delinquency rate on insurers’ loan receivables declined 0.02 percentage points to 0.82%.

The delinquency rate for household loans rose 0.03 percentage points quarter-on-quarter to 0.87%, while the rate for corporate loans fell 0.03 percentage points to 0.80%.

However, the ratio of non-performing loans (NPLs) increased during the quarter. As of the end of March, the NPL ratio stood at 1.13%, up 0.10 percentage points from the previous quarter.

The NPL ratio for household loans rose 0.01 percentage points to 0.68%, while the ratio for corporate loans increased 0.14 percentage points to 1.35%.

The FSS said it plans to strengthen guidance for insurers on asset quality management amid ongoing external uncertainties, including instability in the Middle East.

“The supervisory authority will guide insurers to reinforce asset soundness management in preparation for the possibility of expanding bad loans caused by continued external risk factors such as the Middle East situation,” the regulator said.

#insurance companies #Financial Supervisory Service #FSS #loan receivables #delinquency rate