À̹ÌÁö È®´ë Two - MG Non-life Insurance and Fubon Hyundai Life Insurance - out of 55 insurers in business in Korea came under watch from the financial watchdog because of lacking minimum capital, the Financial Supervisory Service said.
MG Non-life Insurance Co. reported risk-based capital (RBC) ratio of 82.4 percent as of the end of June, well below Korea¡¯s bottom requirement of 100 percent.
The RBC ratio is the minimum capital a financial institution must hold to protect investors and clients. The current insurance law requires financial firms to have at least 100 percent RBC ratio. The FSS recommends minimum RBC of 150 percent.
The Financial Services Commission (FSC) ordered MG Non-life Insurance to improve its management status. FSS said the non-life insurer aims to complete capital increase by the end of this month to boost its RBC ratio to above 100 percent.
The RBC ratio of Fubon Hyundai Life Insurance, former Hyundai Life, came at 147.7 percent, below the recommended ratio of the FSS. The company, however, expects that its RBC ratio would be pushed up to 250 percent at the end of this year as it recently completed paid-in capital increase worth 300 billion won ($266.8 million).
More show shaky RBC ratio. The RBC ratio of Lotte Non-life Insurance Co. was measured at 155.6 percent, Heungkuk Fire & Marine Insurance Co. at 156.6 percent and Hana Life Insurance Co. at 166.9 percent. ¡°We will step up our monitoring for some insurers at risk of deterioration of capital availability to enhance financial soundness by increasing capital and strengthening risk management,¡± said the FSS.
The RBC ratio of 24 life insurers and 31 non-life insurers in Korea averaged at 253.5 percent as of the end of June, up 3.6 percentage points from end-March. Life insurers¡¯ RBC ratio rose 5.1 percentage points to 263.3 percent, and that of non-life insurers edged up 1.1 percentage points to 234.8 percent.
By Park Man-won and Choi Mira
[¨Ï Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]