In 2021, the casualty insurance market in Korea grew by 6.6% in the face of pandemic-triggered economic challenges. Demand growth was a major driver of market expansion. Rate increases also provided solid momentum to market growth. Amid the hardening of the global casualty reinsurance market, renewal prices have been pushed up in the domestic market as well. Yet, for some lines of business with favorable results, primary insurers continued to increase their retention levels selectively.
Against this backdrop, Korean Re delivered excellent business results for 2021. As we focused on achieving bottom-line growth based on selective underwriting, our underwriting profit from casualty lines more than doubled in 2021. In particular, our bond insurance business maintained a great loss ratio thanks to our continuous efforts to strengthen underwriting guidelines. This profit-oriented selective underwriting strategy, however, led to a 13.2% decrease in gross written premiums as we withdrew from underperforming accounts.
In 2021, liability lines of business made up the largest part of our total casualty premiums at 26.1%, followed by special risks at 25.3% and personal accidents at 14.0%.
The share of overseas inward premiums was maintained at 17.8% of the entire casualty portfolio. We have been taking a cautious approach in identifying target risks based on a comprehensive analysis of individual markets and risks.
Throughout 2021, we remained committed to strengthening our collaboration with both domestic and overseas clients to support them effectively in response to evolving market trends. Our client engagement is increasingly focused on helping our clients better respond to ongoing market concerns, including the COVID-19 pandemic, digital transformation, cyber security, and environmental, social and governance (ESG) issues.
With the rise of social inflation and a raft of legislative changes, the casualty insurance market may have to deal with an unprecedented level of uncertainty in the post-pandemic era. In response, we will challenge ourselves to optimize our risk management based on a thorough and preemptive analysis of risks. This effort will enable us to maintain a profitable portfolio and stay dedicated to providing stable reinsurance capacity and services to our clients going forward.
Gross Written Premiums: Casualty
(Units: KRW billion, USD million)
|FY 2021 (KRW)||FY 2021 (USD)||FY 2020 (KRW)||FY 2020 (USD)|
|Surety & Credit||194.0||168.8||200.4||168.2|
|Special Risks & Others||291.9||254.0||381.0||319.7|
|Overseas Inward Business||205.9||179.1||243.0||203.9|