We exceeded our annual bottom-line target, recording a net income of KRW 322 billion.
I am pleased to share with you the business performance of Korean Re over the past year. In 2025, we delivered strong results through our disciplined strategy of balancing growth with profitability, meeting our financial goals across all key indicators. Most notably, we exceeded our annual bottom-line target, recording a net income of KRW 322 billion.
Over the past several years, we have focused on enhancing profitability and achieving high-quality growth, while building a solid foundation for future business expansion. Central to this effort has been the development of sophisticated risk management models to ensure stable underwriting profitability. At the same time, the continued expansion of our overseas business has also allowed us to secure new growth momentum.
Backed by a growth in operating income, our capital position is stronger than ever. In 2025, total assets rose by KRW 1,099 billion to KRW 14.3 trillion, while invested assets increased by KRW 1,081 billion to KRW 11.9 trillion. These results reflect the stability of our underwriting portfolio as well as disciplined investment management.
Our share price has increasingly reflected this financial progress. In appreciation of the continued trust and support of our shareholders, we have maintained our high-dividend policy, declaring a dividend of KRW 570 per share with a dividend yield of 4.6%. Enhancing shareholder value will remain a key priority as we move forward.
While we are proud of these achievements, we remain mindful that the global landscape is fraught with climate-driven challenges. Global losses from natural catastrophes continue to rise, and 2025 was no exception. Global economic losses from natural disasters exceeded USD 260 billion in 2025, of which around USD 127 billion was insured. The large-scale wildfires in Los Angeles (LA) in January and the winter storms that swept across Europe served as stark reminders of the importance of strengthening society’s resilience against natural disasters.
Amid the growing frequency and severity of natural catastrophes, Korean Re has made an all-out effort to refine its risk models to maintain robust profitability. Coupled with this effort, we have upheld strict underwriting standards and remained committed to improving portfolio quality. As a result, we have been able to manage earnings volatility effectively, demonstrating the soundness of our management philosophy, which prioritizes long-term profitability and financial strength over short-term expansion.
We will continue to enhance our risk assessment systems and catastrophe (CAT) modeling capabilities, while carefully managing risk concentration by region and line of business. Through these efforts, we aim to minimize the impact of large loss events on our business results. As we further expand our overseas underwriting portfolio and respond proactively to evolving global market conditions, we will be able to sustain stable performance in a volatile environment.
Looking ahead, the reinsurance market is expected to face increasingly complex dynamics. Rising costs of natural catastrophe risks, pressure for price moderation, and the growing importance of emerging risks such as cyber threats will shape the industry landscape. In addition, the broader macroeconomic environment also remains challenging, with persistent geopolitical and macroeconomic uncertainties putting a drag on global economic growth in 2026.
Despite these challenges, Korean Re will actively adapt to the rapidly changing business landscape in 2026 and further strengthen its long-term competitiveness. While maintaining our profitability-centered approach, we will also seek a new stage of growth, backed by strong credit ratings. Our financial strength rating was upgraded to A+ (Stable) by S&P in July 2025, which came on the heels of Moody’s newly assigning Korean Re an A1 (Stable) rating in May. These achievements reflect our strong capital adequacy and underwriting profitability and signify that Korean Re has established itself as a competitive global reinsurer beyond the Asian market.
International expansion continues to be a core pillar of our strategy. Overseas operations established over the past five years have taken firm root and are delivering notable performance improvements. Furthermore, with the establishment of a new branch in GIFT City, Gujarat, India, which commenced operations in April 2026, our global network now comprises 12 overseas business platforms. This expansion underscores our steadfast commitment to increasing the portion of our overseas business and developing new markets. We will continue to explore new growth opportunities and solidify our position as a leading global reinsurer.
Meanwhile, the advancement of AI technology is transforming work processes and decision-making structures across industries. In response, Korean Re created a dedicated AI organization in 2025 and began preparations for AI Transformation (AX). We will seek to strengthen AI governance and drive data-based innovation to enhance both efficiency and professional expertise.
Another important milestone lies ahead in 2026 with the full-scale launch of our headquarters reconstruction project. By renewing the space that has accompanied our development for decades and building a future-oriented working environment, we aim to support sustainable organizational growth.
Korean Re has consistently taken a long-term perspective in building a strong and resilient company. I would like to express my sincere gratitude to our shareholders for your continued trust and support. We remain fully committed to meeting your expectations and delivering value.
I wish you and your families good health and happiness in the year ahead, and I kindly ask for your continued encouragement and support.
Thank you.
I am pleased to share with you the business performance of Korean Re over the past year. In 2025, we delivered strong results through our disciplined strategy of balancing growth with profitability, meeting our financial goals across all key indicators. Most notably, we exceeded our annual bottom-line target, recording a net income of KRW 322 billion.
Over the past several years, we have focused on enhancing profitability and achieving high-quality growth, while building a solid foundation for future business expansion. Central to this effort has been the development of sophisticated risk management models to ensure stable underwriting profitability. At the same time, the continued expansion of our overseas business has also allowed us to secure new growth momentum.
Backed by a growth in operating income, our capital position is stronger than ever. In 2025, total assets rose by KRW 1,099 billion to KRW 14.3 trillion, while invested assets increased by KRW 1,081 billion to KRW 11.9 trillion. These results reflect the stability of our underwriting portfolio as well as disciplined investment management.
Our share price has increasingly reflected this financial progress. In appreciation of the continued trust and support of our shareholders, we have maintained our high-dividend policy, declaring a dividend of KRW 570 per share with a dividend yield of 4.6%. Enhancing shareholder value will remain a key priority as we move forward.
While we are proud of these achievements, we remain mindful that the global landscape is fraught with climate-driven challenges. Global losses from natural catastrophes continue to rise, and 2025 was no exception. Global economic losses from natural disasters exceeded USD 260 billion in 2025, of which around USD 127 billion was insured. The large-scale wildfires in Los Angeles (LA) in January and the winter storms that swept across Europe served as stark reminders of the importance of strengthening society’s resilience against natural disasters.
Amid the growing frequency and severity of natural catastrophes, Korean Re has made an all-out effort to refine its risk models to maintain robust profitability. Coupled with this effort, we have upheld strict underwriting standards and remained committed to improving portfolio quality. As a result, we have been able to manage earnings volatility effectively, demonstrating the soundness of our management philosophy, which prioritizes long-term profitability and financial strength over short-term expansion.
We will continue to enhance our risk assessment systems and catastrophe (CAT) modeling capabilities, while carefully managing risk concentration by region and line of business. Through these efforts, we aim to minimize the impact of large loss events on our business results. As we further expand our overseas underwriting portfolio and respond proactively to evolving global market conditions, we will be able to sustain stable performance in a volatile environment.
Looking ahead, the reinsurance market is expected to face increasingly complex dynamics. Rising costs of natural catastrophe risks, pressure for price moderation, and the growing importance of emerging risks such as cyber threats will shape the industry landscape. In addition, the broader macroeconomic environment also remains challenging, with persistent geopolitical and macroeconomic uncertainties putting a drag on global economic growth in 2026.
Despite these challenges, Korean Re will actively adapt to the rapidly changing business landscape in 2026 and further strengthen its long-term competitiveness. While maintaining our profitability-centered approach, we will also seek a new stage of growth, backed by strong credit ratings. Our financial strength rating was upgraded to A+ (Stable) by S&P in July 2025, which came on the heels of Moody’s newly assigning Korean Re an A1 (Stable) rating in May. These achievements reflect our strong capital adequacy and underwriting profitability and signify that Korean Re has established itself as a competitive global reinsurer beyond the Asian market.
International expansion continues to be a core pillar of our strategy. Overseas operations established over the past five years have taken firm root and are delivering notable performance improvements. Furthermore, with the establishment of a new branch in GIFT City, Gujarat, India, which commenced operations in April 2026, our global network now comprises 12 overseas business platforms. This expansion underscores our steadfast commitment to increasing the portion of our overseas business and developing new markets. We will continue to explore new growth opportunities and solidify our position as a leading global reinsurer.
Meanwhile, the advancement of AI technology is transforming work processes and decision-making structures across industries. In response, Korean Re created a dedicated AI organization in 2025 and began preparations for AI Transformation (AX). We will seek to strengthen AI governance and drive data-based innovation to enhance both efficiency and professional expertise.
Another important milestone lies ahead in 2026 with the full-scale launch of our headquarters reconstruction project. By renewing the space that has accompanied our development for decades and building a future-oriented working environment, we aim to support sustainable organizational growth.
Korean Re has consistently taken a long-term perspective in building a strong and resilient company. I would like to express my sincere gratitude to our shareholders for your continued trust and support. We remain fully committed to meeting your expectations and delivering value.
I wish you and your families good health and happiness in the year ahead, and I kindly ask for your continued encouragement and support.
Thank you.
Jonggyu Won
President and CEO