Hanwha Life Insurance Reports Q1 Net Profit of 83.9 Billion KRW, Up 261% Year-on-Year

[Asia Economy Reporter Oh Hyung-gil] Hanwha Life announced on the 14th that its net profit for the first quarter of this year was tentatively estimated at 83.9 billion KRW, an increase of 261.48% compared to the same period last year.

During the same period, sales amounted to 8.1409 trillion KRW, and operating profit was 99.8 billion KRW, increasing by 31.95% and 164.57% respectively compared to the same period last year.

Premium income recorded 3.417 trillion KRW, up 7.4% year-on-year despite the slowdown in the industry. General account premium income grew 8.5% year-on-year to 2.568 trillion KRW due to the expansion of protection insurance sales. Pension insurance and savings insurance also increased to 2.568 trillion KRW.

Total new contract annualized premium equivalent (APE) achieved 560 billion KRW, a 4.4% growth year-on-year, supported by strong sales of whole life insurance, CI insurance, and savings insurance.

The RBC ratio rose by 29.2 percentage points year-on-year to 245.6%, due to gains on available-for-sale securities valuation amid declining market interest rates.

Kim Hyun-chul, CFO of Hanwha Life, said, "We expect the unfavorable management environment for life insurers to continue this year due to increased internal and external volatility caused by COVID-19, low birth rates, and low interest rates. We will continue to pursue a profitability-focused strategy across the business, generate solid core insurance profits, and manage volatility in secondary income and expenses."

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