Hanwha General Insurance Sees 12.6% Drop in First-Half Net Profit, Offset by Investment Gains

Sales Up 13% on Strong Women's Insurance
In-force Contract CSM Reaches KRW 4.1 Trillion, Up 8.4%

Hanwha General Insurance reported a double-digit decline in net profit for the first half of the year compared to the same period last year, mainly due to weak insurance profit. However, the company was able to narrow the decline thanks to improved investment profit and the performance of its in-force contract Contractual Service Margin (CSM).

Seoul Yeongdeungpo-gu Yeouido Hanwha General Insurance Headquarters building. Hanwha General Insurance

According to Hanwha General Insurance on August 14, its standalone net profit for the first half of this year was KRW 222.6 billion, down 12.6% from KRW 254.7 billion in the same period last year.

Insurance profit fell to KRW 206.8 billion, a 21.2% decrease from KRW 262.4 billion a year earlier. However, investment profit increased by 32.2% to KRW 97.4 billion from KRW 73.7 billion in the same period last year, helping to offset the decline in overall performance.

Revenue for the first half rose 13% year-on-year to KRW 3.3226 trillion. For the second quarter alone, revenue increased 15.5% to KRW 1.7134 trillion.

The company explained that stable sales of the "Hanwha Signature Women's Health Insurance," which has a competitive edge in the women's insurance market, along with strengthened product competitiveness in the senior and substandard risk markets, drove the growth in revenue.

The in-force contract CSM stood at KRW 4.1228 trillion, up 8.4% from the end of last year. The new contract CSM increased 23% year-on-year to KRW 451 billion, expanding a stable profit base.

The company also announced that it had secured exclusive usage rights in the third insurance sector and increased the value multiple of new contracts, thereby securing high-quality contracts.

A Hanwha General Insurance official stated, "In the second half of the year, we will continue to strengthen our brand presence based on women's insurance," adding, "We will drive further growth by expanding competitive products, such as children's insurance for which we have obtained five exclusive usage rights."

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