Lotte Sonbo, H1 Net Profit 76.8 Billion KRW... Up 21.2% YoY

[Asia Economy Reporter Oh Hyung-gil] Lotte Insurance announced on the 10th that its net profit for the second quarter was 13.9 billion KRW, a 43.5% decrease compared to the same period last year. Although sales increased by 3.4% year-on-year to 578.1 billion KRW, operating profit fell by 45.0% to 19.2 billion KRW.

For the first half of the year, sales rose 3.5% to 1.1482 trillion KRW, and net profit increased by 21.2% to 76.8 billion KRW.

Lotte Insurance explained that the overall gross written premium sales increased due to continuous portfolio stabilization efforts and growth in long-term protection insurance products.

Sales of long-term protection insurance recorded 620 billion KRW in the first half of 2019, 714.6 billion KRW in the first half of 2020, and 844.8 billion KRW in the first half of this year, maintaining an average annual growth rate in the 10% range.

Additionally, the overall loss ratio, which was 91.6% in the first half of 2019, decreased to 87.8% in the first half of last year and further to 87.1% in the first half of this year. Recently, Lotte Insurance introduced a new embedded value (EV) evaluation system, strengthening risk management and enhancing its capability to respond to insurance risks.

The solvency capital requirement (RBC) ratio recorded 194.2% in the second quarter, supported by the participation of the major shareholder Bigtura in a paid-in capital increase following the change in the largest shareholder. The RBC ratio is expected to improve by approximately 4.7 percentage points in the third quarter due to the effect of selling existing shares of Lotte Rental, which is scheduled to be listed on the 19th.

A Lotte Insurance official said, "As a result of strengthening the core competitiveness of the insurance business after the change in the major shareholder, sales and the RBC ratio increased in the first half of this year compared to last year. Based on stable management performance, we will continue responsible management focused thoroughly on embedded value to become a top-tier insurance company."

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