Korean Re's strong credit rating of "A" has been affirmed by A.M. Best

In October 2015, A.M. Best affirmed Korean Re’s financial strength rating of "A" (Excellent) and the issuer credit rating of “a” with the outlook for both ratings remaining stable. According to the rating agency, the affirmed ratings and continued stable outlook reflect Korean Re’s adequate risk-adjusted capitalization, stable operating performance and strong position in the domestic market. Its risk-adjusted capitalization increased year on year mostly due to the issuance of subordinated capital securities worth USD 200 million in October 2014. Over the past five years, Korean Re’s RBC ratio has been above 200%, way higher than the statutory minimum requirement of 100%, in spite of tightening regulatory capital standards.

The company has also been consistently focused on improving profitability through strategic retention management and operational efficiency. It reported KRW 141.5 billion in net income for the first six months of 2015, the highest first-half results in its history. This strong performance has been achieved thanks to the absence of large natural catastrophes, but it is also a result of the company’s drives to expand its overseas business and enhance risk management. Its overseas combined ratio has strongly improved, reaching the lowest level in ten years in June 2015. Korean Re has tightened its underwriting guidelines and improved its risk management since the Thai floods in 2011.