MUMBAI (Thomson Financial) - Moody's Investors Service sees a stable outlook for the Korean life insurance industry, reflecting expectations for the sector's fundamental credit conditions over the next 12 to 18 months. The stable outlook is based on the likelihood of abundant growth opportunities thanks to deregulation, favorable socio and economic trends, improving asset quality and capital adequacy, Moody's said. The stable outlook is further based on its view that of 'a rather gentle decoupling of the Korean economy' from the U.S. through the rise of intra-regional trade, especially with China since the last U.S. recession in 2001, Moody's. Therefore, Korean economic growth should be able to continue to support premium growth of the life industry, the ratings agency said.An aging population, greater consumer awareness of investments, familiarity with capital markets, and a positive economic outlook boosting savings are factors which support strong growth within the sector, the report noted, adding that M&A activity will likely pick up as banks and foreigninsurance groups look for investment opportunities for cross-selling, expansion and diversification. The anticipated public listing of life insurers on the Korea Exchange will provide a new source of funding, Moody's noted.
news source : http://www.forbes.com/
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