Hanwha Life Insurance Reports Q1 Net Profit of 381.6 Billion Won, Up 29%... Revenue Surges 55%

"Increase in New Protection-Type Contracts... Improved Investment Gains"

"K-ICS Ratio Up 4.5 Percentage Points from Previous Quarter... Projected at 162%"

On May 12, Hanwha Life Insurance announced that its consolidated net profit for the first quarter reached 381.6 billion won, up 29% from the same period last year.

Revenue was 9.9852 trillion won, a 54.7% increase year-on-year. Operating profit also rose by 29.5% to 480.8 billion won.

Hanwha Life Insurance explained that the company improved profitability by expanding new contracts centered on protection-type insurance, as well as enhancing investment gains.

From an insurance profit perspective, the overall in-force Contractual Service Margin (CSM) increased, driven by the expansion of annualized premium equivalent (APE) for protection products and growth in new business CSM.

In the first quarter, protection-type APE increased by 1.8% to 700.3 billion won, while new business CSM rose by 25.1% to 610.9 billion won.

With a rise in medium- and long-term payment sales for death coverage, the product portfolio was improved, resulting in the profitability multiple of new business CSM increasing from 7.8 times last year to 9.8 times.

Due to increased inflow of new business CSM, the in-force contract CSM grew by 207.2 billion won compared to the previous quarter, reaching 8.9209 trillion won.

The 13th-month persistency rate, a key indicator of sales efficiency, was 90.2%, up 1.1 percentage points from the end of last year.

The 13th-month persistency rate refers to the proportion of policyholders who continue to pay premiums through the 13th month (one year and one month) after purchasing an insurance product.

Investment profit also contributed to the results, as recurring income such as interest and dividend income continued to grow, and the company achieved performance based on its long-term investment strategy.

The risk-based capital ratio (K-ICS), an indicator of financial soundness, is expected to rise by 4.5 percentage points from the previous quarter to 162%.

In addition, the balanced earnings growth of key domestic and overseas subsidiaries—including corporate insurance agencies (GA) such as Hanwha Life Financial Service, non-life insurance, asset management, and securities affiliates—also contributed to improved profitability.

Specifically, GA subsidiaries posted a net profit of 23.3 billion won, domestic financial subsidiaries 145.7 billion won, and major overseas subsidiaries 45.3 billion won.

The company also maintained strong competitiveness in its sales channels. The number of planners belonging to Hanwha Life Insurance's subsidiary-type GA, centered on Hanwha Life Financial Service, continued to increase, reaching 37,646.

The 13th-month settlement rate was 55.8%, up 1.2 percentage points year-on-year.

Jongguk Yoon, Chief Financial Officer of Hanwha Life Insurance, said, "Thanks to stable growth centered on protection-type products and ongoing efforts to improve profitability, we are laying a solid business foundation by expanding both new business CSM and in-force CSM. We will continue to reliably manage separate net profit and enhance the profitability of both domestic and overseas subsidiaries to further increase consolidated net profit."

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