Lotte Insurance Posts Q3 Net Profit of 70.8 Billion Won "Business Expense Efficiency"

[Asia Economy Reporter Oh Hyung-gil] Lotte Insurance announced on the 10th that its cumulative net profit for the third quarter reached 70.8 billion KRW, marking a 105.4% increase compared to the same period last year.

The cumulative sales (gross written premiums) for the third quarter amounted to 1.6591 trillion KRW, a 10.5% decrease from the same period last year, but operating profit rose by 117.5% to 97.8 billion KRW.

Lotte Insurance explained that the sales decline was due to de-marketing of automobile insurance and long-term savings-type insurance. On the other hand, long-term protection insurance, which has excellent profitability and new contract value, grew by 16.1% compared to the same period last year.

The new contract value for the third quarter was 40.1 billion KRW, an increase from 33.2 billion KRW in the previous quarter.

Additionally, the cumulative loss ratio decreased from 93.9% in the third quarter of last year to 88.7% in the third quarter of this year. Operating expenses, including labor costs, were also streamlined, resulting in a combined ratio of 110.8%, down 3.0 percentage points compared to the same period last year.

A Lotte Insurance official stated, "We continue efforts to enhance the core competitiveness of the insurance business by prioritizing the increase of long-term embedded value," adding, "The cumulative operating profit for the third quarter achieved 86.2% of the 113.5 billion KRW guidance announced at the beginning of the year."

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