Hanwha Life Insurance Obtains Highest Insurance Financial Strength Ratings from Three Major Credit Rating Agencies

[Asia Economy Reporter Oh Hyung-gil] Hanwha Life announced on the 4th that it has obtained the highest insurance payment capability rating of 'AAA' from the three major domestic credit rating agencies.

The rating agencies evaluated that despite the low interest rates causing domestic and international economic stagnation, a saturated insurance market, and strengthened regulations by financial supervisory authorities, Hanwha Life has an excellent business performance based on market dominance and a stable profit base through a diversified insurance portfolio. They also forecast that Hanwha Life will maintain stable profitability and payment capacity based on its risk management capabilities.

As of the end of September 2019, Hanwha Life had total assets of 118.8 trillion KRW and held the second-largest market share (12%) based on insurance premium income.

From an operational perspective, Hanwha Life was evaluated to have high stability in its sales organization due to its sales channels mainly composed of exclusive agents. The agent retention rate and contract maintenance rate indicators exceed the industry average, indicating effective insurance contract management.

Regarding products, the portfolio is evenly diversified among protection insurance, savings insurance, and special account products, which was assessed as a positive factor for business diversification. It was judged that the recent increase in the proportion of protection insurance has led to qualitative improvement in the insurance portfolio.

Additionally, the rating agencies evaluated Hanwha Life’s asset soundness as excellent and forecast that profitability will recover to past levels this year.

A Hanwha Life official explained, "Since receiving the 'AAA' credit rating from Korea Ratings and NICE Investors Service in February 2008, we have maintained the highest rating for 13 consecutive years," adding, "We have also maintained the highest insurance payment capability rating for 10 consecutive years from Korea Credit Rating."

This content was produced with the assistance of AI translation services.