Mirae Asset Life 1Q Net Profit 100.7 Billion KRW... Up 78.7% YoY

"Effectiveness of Two-Track Approach in Guaranteed and Variable Insurance"

Mirae Asset Life Insurance posted a net profit exceeding 100 billion KRW in the first quarter of this year. The company explained that its 'two-track' strategy focusing on protection insurance and variable insurance was effective.

On the 23rd, Mirae Asset Life Insurance announced that it recorded a net profit of 100.7 billion KRW in the first quarter of this year, representing a 78.7% increase compared to the same period last year. Operating profit also rose by 80.1% during the same period, reaching 137.5 billion KRW.

The strong performance was attributed to a profitability-centered sales portfolio. The company secured results by focusing on selling high-yield health insurance products such as low-surrender whole life insurance with a 10-year payment period, variable whole life insurance, and 'Healthcare Healthy Life Insurance.'

The Contractual Service Margin (CSM), a newly introduced profitability indicator under IFRS17 applied this year, was recorded at 2.007 trillion KRW. Of this, the new contract CSM amounted to 57.2 billion KRW. The proportion of protection insurance, including death, health, and variable death benefits, accounts for 80% of the held CSM. CSM is a concept that evaluates future profits from insurance contracts; it is recognized as a liability at the contract inception and amortized as profit over the contract period.

The new solvency ratio (K-ICS), which gauges capital soundness, is projected at 220% on a consolidated basis. The company plans to maintain it within the 180-220% range going forward.

Additionally, the reserves for variable insurance increased by approximately 60 billion KRW compared to the end of last year. This is attributed to the company’s own overseas diversification investment principles and a focus on mid- to long-term global asset allocation. For example, Mirae Asset Life Insurance’s representative asset allocation fund, the MVP60 Fund, has recorded a cumulative return of 46%.

Baesu Dong, Head of Management Innovation at Mirae Asset Life Insurance, stated, "In the second half of the year, as high-interest savings and deposit products in the financial sector decrease, the performance of variable investment-type products is expected to improve. We will achieve remarkable growth both qualitatively and quantitatively through improvements in the sales process and securing economies of scale."

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