In 2022, the casualty insurance market in Korea remained solid in terms of growth, with premium income increasing by 5.9% in the face of pandemic-triggered economic challenges. Demand growth in liability lines was a major driver of market expansion. Rate increases also provided firm 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, our Casualty Team delivered excellent business results for 2022. As we focused on achieving bottom-line growth based on selective underwriting, we improved the quality of our business portfolio, and our technical results turned around to a surplus in 2022, setting the stage for sustainable profit in the long term.

Despite this profit improvement, we experienced a 4.4% decrease in gross written premiums in 2022 due to our withdrawal from underperforming accounts. By line of business, liability lines of business made up the largest part of our total domestic casualty premiums at 42.3%, followed by special risks at 33.0% and personal accidents at 24.7%.

In 2022, we remained steadfast in our dedication to strengthening cooperation with our clients to support them effectively in response to evolving market trends. Our client engagement is increasingly focused on helping our clients address pressing market issues, including the digital transformation accelerated by COVID-19, cyber security, and environmental, social and governance (ESG) concerns.

Going forward, the casualty insurance market is likely to encounter an unprecedented level of uncertainty in the post-pandemic era, along with the rise of social inflation and a changing legislative landscape. 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 committed to providing stable reinsurance capacity and services to our clients in a way that meets their needs.