Treaty Business

In 2025, the reinsurance market shifted further toward a more buyer-friendly environment amid record levels of capital and intensifying competition. Global insured catastrophe losses exceeded USD 120 billion for the sixth consecutive year, driven primarily by U.S. wildfires and severe convective storms. However, the absence of a named hurricane landfall in North America contributed to a comparatively moderate level of reinsured losses, allowing reinsurers to maintain robust profitability and returns above the cost of capital.

Supply continued to outpace demand across most lines, resulting in a softening pricing environment. In the property catastrophe segment, abundant capacity led to significant risk-adjusted rate reductions globally, accompanied by selective improvements in terms and conditions.

Casualty renewals also experienced a softening trend, albeit to a lesser extent than in property. U.S. liability lines were a notable exception, with rates continuing to increase amid heightened scrutiny over social inflation and reserve adequacy. In contrast, international casualty markets saw declining rates, as sustained profitability intensified competition and additional capacity flowed into the segment, driven by reinsurers’ efforts to diversify away from the U.S.

█ International Treaty Portfolio by Region – All Lines of Business (FY 2023 – FY 2025)

(Unit: %)

* The concentric rings represent fiscal years, from inner to outer: FY 2023, FY 2024, and FY 2025.

In 2025, the international treaty business written by our head office recorded an increase of 8.8% in gross written premiums, totaling KRW 1,261.7 billion (USD 879.5 million, an increase of 3.8%). We achieved balanced growth across key regions, navigating softening market conditions through disciplined underwriting and targeted portfolio expansion.

Our portfolio composition reflects both a commitment to diversified growth and dynamic adjustments to evolving market opportunities. Europe and the Americas accounted for 40.1% and 27.6% of total premiums, respectively, followed by the Middle East at 17.0% and East Asia at 15.3%. Both Europe and the Americas showed double-digit growth of 24.1% and 19.7%, respectively, in line with our strategic targets.

We remain committed to expanding non-property classes of business as part of our broader diversification strategy. Over the past year, the share of non-property business grew from 50.4% to 54.8%, reinforcing a well-balanced risk profile and enhancing resilience against natural catastrophe volatility.

Disciplined underwriting and prudent exposure management supported another year of solid technical performance. In 2025, we recorded net underwriting income of KRW 177.4 billion (USD 123.6 million) and a technical combined ratio of 84.7%, underscoring our sustained profitability in an increasingly competitive market environment.

Amid ongoing uncertainties related to natural disasters and economic conditions, we continue to place emphasis on enhancing profitability by strictly managing natural catastrophe exposures and maintaining a cautious underwriting stance. Moreover, we are actively exploring opportunities in emerging sectors while utilizing both traditional and alternative reinsurance solutions to optimize our capital efficiency in an evolving reinsurance landscape.

█ Gross Written Premiums: International Treaty by Line of Business

(Units: KRW billion, USD million)

	2025 (KRW)	2025 (USD)	2024 (KRW)	2024 (USD)
Property	522.8	364.5	527.9	385.8
Casualty	414.1	288.7	347.2	253.7
Motor	233.8	163.0	191.4	139.9
Engineering	47.2	32.9	47.4	34.7
Marine	41.7	29.1	43.2	31.6
Others	2.0	1.4	2.3	1.7
Total	1,261.7	879.5	1,159.5	847.3

* Individual figures may not add up to the total shown due to rounding.