South Korea's five largest nonlife insurers earned a combined 5.82 trillion won (about $4 billion) in the first nine months of 2026, up 5.5% from a year earlier, as recovering underwriting income outweighed a sharp drop in investment returns in the third quarter.

The figures, compiled by Seoul Economic Daily from results that Samsung Fire & Marine Insurance, DB Insurance, Meritz Fire & Marine Insurance, Hyundai Marine & Fire Insurance and KB Insurance released this week, show a sector split down the middle. Three insurers grew profit and two went backward. For investors who hold Korean insurers for their dividends and buybacks, the pattern matters: core insurance is improving, but the investment book, which swings with stocks and bond yields, is now deciding who wins.

The tally uses parent-company (separate) figures for Samsung Fire, DB, Meritz and Hyundai Marine and consolidated figures for KB Insurance, the newspaper said. Group-level numbers differ: Aju Business Daily, which simply added each company's headline figure, including Samsung Fire's consolidated 1.868 trillion won, put the five-company total at 5.994 trillion won, up 2.7%. Both tallies show the same profit figures for Meritz, DB and Hyundai Marine.

Samsung Fire and DB Insurance pull ahead

Samsung Fire, the market leader, posted nine-month net profit of 1.694 trillion won, up 15.8%. Its insurance earnings rose 10.7% to 1.483 trillion won, and investment earnings climbed 40.5% to 836.2 billion won, according to Seoul Economic Daily. Its auto insurance line also showed a cumulative surplus of 39.2 billion won.

DB Insurance earned 1.312 trillion won, up 9.3%. Investment earnings fell 13.2%, but insurance earnings jumped 44.8% to 1.119 trillion won, enough to cover the gap. Hyundai Marine & Fire reported the fastest growth of the five: profit rose 23.1% to 780.8 billion won on a 76.2% surge in insurance earnings, and its cumulative long-term insurance profit rose 71.8%.

Much of the improvement came from long-term policies such as health and accident cover. Losses from claims running above actuarial expectations, a key IFRS 17 measure, shrank. At DB Insurance, that third-quarter loss on long-term insurance narrowed to about 17 billion won from roughly 150 billion won a year earlier, the newspaper reported.

Meritz Fire and KB Insurance hit by investment losses

Meritz Fire earned 1.353 trillion won in the nine months, down 6.8%. Its insurance earnings rose 7.6%, but that was not enough to make up for weaker investment income.

KB Insurance, the nonlife arm of KB Financial Group, reported an 11.2% fall in profit to 681.1 billion won. Insurance earnings rose 13.1%, while investment earnings dropped 43.2%.

The third quarter alone was harsher. Meritz Fire's investment earnings fell 87.9% in July to September, and quarterly net profit dropped 29.2% even though insurance earnings rose 34.9%. Hyundai Marine & Fire swung to an investment loss in the quarter, and its quarterly profit slipped 9.6%. DB Insurance's investment earnings fell 55.6%, but a 223.7% rise in insurance earnings lifted its quarterly profit 13.4%.

Seoul Economic Daily attributed the investment slump to valuation losses after a correction in the stock market and higher interest rates. Rising yields cut the market value of bonds that insurers hold, while falling share prices hit equity portfolios.

Auto insurance remains a drag

Car insurance is the weak spot. Data from the Financial Supervisory Service, cited by Insurance Business Asia, showed the auto insurance business posted an underwriting loss of 184.8 billion won in the first half of 2026, its first half-year deficit in six years. The combined ratio reached 101.9%, made up of an 84.9% loss ratio and a 17% expense ratio. A ratio above 100% means claims and costs exceeded premiums.

Accident frequency fell 4.5%, but incurred losses rose 2.8% on higher hospital and repair bills, according to the regulator's data. A 1.3% premium increase in January, the first in five years, did not close the gap. Through September, Samsung Fire and DB were back in cumulative surplus on auto policies, while Hyundai Marine & Fire and KB Insurance remained in the red.

Rule changes should help over time. Since Sept. 10, drivers with minor injuries who want treatment beyond eight weeks after an accident must go through a mandatory medical review. Seoul Economic Daily said the effect of that change, along with changes to how manual therapy is reimbursed, is expected to show up gradually in claims.

An unnamed industry official told the newspaper that underwriting would keep recovering, but that without support from investments the rebound in net profit would be limited. The official added that the gap between companies could widen depending on claims management and asset returns.

The fourth quarter brings its own risks. Winter typically lifts accident and illness claims, and insurers will revise loss-ratio and lapse-rate assumptions at year-end, which can move reported profit sharply. The investment hit comes even as the wider economy improved: South Korea's third-quarter growth beat forecasts. The next test for the five is whether December's assumption reviews eat into the underwriting gains booked so far.