[Click eStock] "Hyundai Marine & Fire Insurance, Significant Improvement in Profit Levels"

[Asia Economy Reporter Park Jihwan] Daishin Securities on the 2nd presented a 'Buy' investment opinion and a target price of 32,000 KRW for Hyundai Marine & Fire Insurance, stating that a meaningful improvement in profit levels will lead to an increase in DPS (Dividends Per Share).

Researcher Park Hyejin of Daishin Securities evaluated, "The preliminary loss ratio for automobile insurance in July recorded in the 85% range," adding, "Although the flood damage caused by the monsoon was significant, the impact of Typhoon Bavi was quite minimal."

The automobile insurance loss ratio for the second quarter was 82.9%, improving by 6.0 percentage points compared to the previous year. This was due to the acceleration of premium increases starting from the second quarter.

It is estimated that the COVID-19 effect ended after May. According to Researcher Park, this is because musculoskeletal claims such as physical therapy returned to previous levels. However, due to increased mask usage among people, claims related to respiratory diseases decreased, so the loss ratio is not expected to rise.

Until last year, Hyundai Marine & Fire Insurance was somewhat conservative in utilizing the independent agency (GA) channel, but from this year, it has decided to fully utilize the GA channel. However, the growth rate is targeted at 5% annually, aiming for efficient use rather than aggressive policy competition as in the past.

Researcher Park Hyejin emphasized, "Along with the improvement in insurance operating profit, the overall profit level increased due to gains from the sale of office buildings," and added, "DPS itself is also expected to increase."

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