Hanwha Life, Q3 Cumulative Net Profit of 241.2 Billion KRW... Up 56.3% YoY

[Asia Economy Reporter Oh Hyung-gil] Hanwha Life announced on the 13th that its cumulative net profit for the third quarter reached 241.2 billion KRW, a 56.3% increase compared to the same period last year.

Revenue slightly decreased by 0.2% from last year to 12.7278 trillion KRW, while operating profit turned positive to 212.5 billion KRW.

A Hanwha Life official explained, "Despite the challenging business environment due to COVID-19 and economic slowdown, the improvement in loss ratio through the expansion of other protection-type sales and the reversal of variable guarantee reserves following the stock index rebound contributed to these results."

Premium income recorded 3.436 trillion KRW, a 12.8% increase compared to the same period last year, driven by strong sales of retirement products. Protection-type premium income grew by 3.3% year-on-year as a result of continuously pursuing a strategy to maximize new contract value.

Additionally, general account premium income grew by 8.5% year-on-year to 2.569 trillion KRW due to the expansion of protection-type insurance sales. The protection-type ratio within the general account maintained a solid level of 59%.

During the same period, the protection-type sales ratio in the FP channel and GA channel recorded 92% and 91%, respectively.

Although the overall new contract APE slightly slowed compared to the previous year, the protection-type ratio within total new contracts expanded to 65%. The profitability of total new contract value also reached 47.8%, significantly improved by the two proactive reductions in the assumed interest rate in 2020, which greatly enhanced the profitability of protection-type new contracts.

In particular, other protection-type APE achieved a remarkable growth of 111.4% compared to the same period last year. The expansion of sales of highly competitive other protection products such as special cancer insurance and health insurance increased the proportion of other protection products within protection-type premium income to 18%.

The solvency capital ratio (RBC ratio) recorded a solid level of 265.4%, increasing by 39.7 percentage points year-on-year due to gains in bond valuation, among other factors.

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