Lotte Sonhae Insurance Achieves Operating Profit of 133.9 Billion KRW Last Year... Successful Return to Profitability

[Asia Economy Reporter Changhwan Lee] Lotte Insurance announced on the 17th that it recorded an annual operating profit of 133.9 billion KRW and a net profit of 123.3 billion KRW last year, turning to a profit.

Lotte Insurance emphasized that this return to profitability is the result of the 'strengthening of the core competitiveness of the insurance business' that has been vigorously pursued since the change of the major shareholder.

They explained that by continuously improving the insurance portfolio centered on long-term protection insurance, focusing on asset rebalancing and risk management enhancement, they simultaneously achieved structural improvements in both insurance operating profit and investment operating profit.

Sales of long-term protection insurance, which has excellent new contract value and embedded value, continued to grow steadily. Lotte Insurance's long-term protection insurance sales, which were 1.2843 trillion KRW in 2019, grew by 16.8% year-on-year to 1.5009 trillion KRW in 2020, and recorded 1.689 trillion KRW last year, a 12.5% increase compared to the previous year.

During the same period, the loss ratio decreased by 9.0 percentage points to 87.5% compared to 96.5% at the end of 2019.

As of the end of last year, the solvency capital ratio (RBC) was 180.3%, improving by 9.0 percentage points compared to 171.3% at the end of 2019, right after the change of the major shareholder.

A Lotte Insurance official stated, “As a result of continuously strengthening the core competitiveness of the insurance business since the change of the major shareholder, the annual operating profit and net profit have turned to a profit. We will continue sustainable growth through mid- to long-term increases in embedded value in the future.”

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