"Proving Financial Soundness"... Lotte Sonbo, Early Redemption of 60 Billion Won Subordinated Bonds

Short-term Borrowed RP Also Scheduled for Repayment Within This Month

Lotte Insurance repaid subordinated bonds worth 60 billion KRW early.

On the 8th, Lotte Insurance announced that it had repaid 60 billion KRW of the '6th Private Placement Subordinated Bonds' issued in June 2018. The company exercised the early redemption right (call option) on the subordinated bonds using its available liquidity.

In the first quarter, Lotte Insurance recorded an operating profit of 105 billion KRW, combining an insurance operating profit of 47 billion KRW and an investment operating profit of 58 billion KRW. This is the highest quarterly profit since the company's founding. The Contractual Service Margin (CSM), which is recognized in profit or loss, also reached 1.8949 trillion KRW at the end of the first quarter.

Building on these results, Lotte Insurance plans to repay the repurchase agreement (RP) short-term borrowings within this month. The RP has been used to minimize negative margins on retirement pensions through strategic interest rate settings and to protect high-quality assets such as bonds.

A Lotte Insurance official said, "We repaid the subordinated bonds early based on stable liquidity," adding, "This will serve as an opportunity to demonstrate our solid financial soundness."

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