Hanwha Life Insurance Reports Net Profit of 410.6 Billion KRW Last Year, Up 150.4% YoY

[Asia Economy Reporter Changhwan Lee] Hanwha Life announced on the 17th that its separate basis net profit for last year reached 410.6 billion KRW, a 150.4% increase compared to the previous year.

During the conference call (earnings presentation) held that day, Hanwha Life explained that net profit significantly increased due to non-operating profit growth from the separation of underwriting and sales and enhanced investment income through the barbell strategy.

Last year's consolidated net profit recorded 1.2492 trillion KRW, a 499.8% increase from 208.2 billion KRW in 2020.

The profit surged as Hanwha Investment & Securities was included as a consolidated subsidiary. Hanwha Investment & Securities' 2021 net profit was 144.1 billion KRW, reflecting a 115% increase compared to 2020, which was incorporated into the consolidated earnings.

Additionally, since Hanwha Investment & Securities was included as a consolidated subsidiary of Hanwha Life in September last year, a bargain purchase gain of approximately 300 billion KRW, accounted for once at the initial consolidation, was also reflected.

Moreover, improvements in the performance of subsidiaries such as Hanwha General Insurance and Hanwha Asset Management appear to have been reflected.

Last year's earned premiums amounted to 14.7451 trillion KRW. This was a slight decrease of 0.2% compared to the previous year due to overall industry sales slowdown caused by COVID-19 and a reduction in savings-type insurance volume.

On the other hand, due to a sales strategy focused on general protection products in preparation for the introduction of the new accounting standards, protection-type earned premiums increased by 0.8% compared to the previous year.

In 2021, Hanwha Life actively launched differentiated protection products such as ‘Surgery Health Insurance Everyone Needs’ and ‘Always Beside You Long-term Care Insurance’.

Protection-type APE accounts for 61% of the total, contributing to maximizing new contract value. However, new contract APE decreased by 14.4% compared to the previous year due to strategic reduction in sales of savings insurance and organizational restructuring following the separation of underwriting and sales.

Na Chaebeom, Vice President of Hanwha Life, stated, “This year, we expect profitability to improve due to rising interest rates and will continue a profitability-centered management strategy ahead of the new system introduction,” adding, “We will achieve a 10% increase in general protection APE through strengthening product competitiveness and increasing sales of high-profitability general protection products.”

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