In order to fully contribute to the overriding goal, Korean Re emphasizes that innovation and change begins through transparent, responsible and open-minded management. This includes activities such as weekly "open management meetings", horizontal communication and interaction, holding of annual 'failure case reports', exchange of lessons from past failures, uprooting repetition of negative habits, transparent human resource policy, groundbreaking recruitment system and a revolving position system.
Korean Re will intensify their efforts to bolster profitability through the renovation of complacent and negative corporate culture of the previous government-owned institution in conjunction with a goal-oriented conscious that is under the motto "tomorrow that is different from today". This will shed the repetition of the previous work processes to create an atmosphere where creativity and challenge-oriented spirit can be fostered for all.
To demonstrate this innovative corporate culture, since 2004 until now, almost all Korean Re management and staff have been taking part in a training program, which involves traversing the wondrous peaks of the Baekdu Mountain range, for the purpose of enhancing their teamwork and to further foster the challenge-oriented spirit.
Remarkable growth
Despite a change in mindset and a challenging business environment, Korean Re turned in remarkable growth as well as enhancement of profitability to make it the 11 reinsurer in the world (in terms of net written premiums), and the number one reinsurer in Asia, by attaining an average annual growth rate of 13 percent. Korean Re's past six-year average growth rate of 11.1 percent far exceeds the domestic insurance market's six-year average growth rate of 8.3 percent.
In terms of profitability, the accumulated net income for the past 11 years from 1999 to 2010 totals KRW597. 8 billion, which is 7.2 times the previous 36 year total of KRW82.7 billion. This is due to a continuous high-profit base through aggressive business expansion policy, high profitability, and scientific risk management. In FY2009, gross premium per employee rose to KRW16.5 billion, adjusted net profit soared to KRW560 million ranking as a top rate firm in terms of profitability.
Systematic training & professional development
Korean Re will provide new recruits with the vision and responsibility to become a global reinsurance expert in conjunction with the mentoring program by management, respective departments, and IT. They will also provide internal and external education programs on (re)insurance, onsite underwriting training, education on etiquette at Dosan Training center and positioning of new recruits in departments most-suitable through in-depth interviews.
Korean Re has consistently contributed to the stability of insurers' operating results by providing proportional and non-proportional reinsurance protection. Additionally, it has worked hard to ensure steady growth of clients through the provision of a variety of services for insurers by, the establishment of the human resource pool, placement of employees in the 'right position' through flexible operation of the 'revolving position' system and cultivation of overseas specialists.
3 strategies to become a Global Top Class reinsurer
The company has set up 3 ambitious strategies to become a world class global reinsurer. First, expand overseas business and this will be accomplished by entering unchartered regions and increasing business volume in the Chinese reinsurance market, joint underwriting of business with domestic insurers, strengthening of overseas business units as well as domestic and overseas risk survey functions.
Second, Korean Re will penetrate new domestic markets by developing diverse niche markets; expand life reinsurance business of entire P/F to 15 percent in 2010 and by 30 percent in 2020. On top of that it will also create reinsurance demand in prospective arenas such as medical insurance, create reinsurance demand through support of government insurance and develop reinsurance products in line with rapidly changing market circumstances.
Third, is business diversification, which will be accomplished by constructing a new growth model that is equipped to deal with the trends of synthesis across business sectors and considering M&A or investing in major insurers in China or Vietnam. Moreover, it will examine reinsurance related industries such as, asset management, securities, and insurance consulting for a synergy effect.
Rapid rise in reliability at home and abroad
A.M.Best, one of the world's top credit rating agencies, has given Korean Re an "A- (excellent)" rating, citing the Korean reinsurer's excellent business results, its leading role in the local market, ability to provide timely reinsurance products satisfying market needs, stable investment portfolio and effective distribution of risk. As Korean Re gained the "A-" rating for the eighth consecutive year from A.M. Best for its outstanding managerial ability, it has firmed up its leadership position in the local and overseas markets. Also, selected as "2009 Emerging Market Player" by Reinsurance Magazine, awarded "Emerging Market Player of the Year" in the "Reinsurance Readers' and awarded" by the world famous English reinsurance magazine "Reinsurance."
Furthermore, Korean Re will secure new growth engines, create continuous high-profit, improve management systems, and reform corporate culture by maximizing the synergy effect with reinsurance businesses such as expansion of overseas business, development of new markets and products, strategic asset management, and most importantly enlargement the global network.
