Hyundai Marine & Fire Insurance Reports Q1 Net Profit of 223.3 Billion Won, Up 9.9% Year-on-Year

Hyundai Marine & Fire Insurance announced on May 15 that its net profit for the first quarter reached 223.3 billion won, up 9.9% from the same period last year.

During the same period, revenue increased by 10.0% year-on-year to 4.6219 trillion won, and operating profit rose by 8.5% to 309.3 billion won.

By business segment, the auto insurance sector recorded a loss of 14 billion won, turning to a deficit compared to the same period last year. The continued losses were attributed to the cumulative premium reductions up to last year and rising claims costs.

The long-term insurance segment posted a profit of 265.9 billion won, a 132.5% increase from the previous year. The improvement was due to a slowdown in the growth of paid insurance claims relative to the expected insurance benefit, resulting in a better actual-to-expected ratio. The general insurance segment recorded a profit of 50.2 billion won, up 9.4% year-on-year.

Investment profit amounted to 6.1 billion won, a decrease of 94.3% from a year earlier. This was due to temporary valuation losses on bonds and alternative investments resulting from rising interest rates.

The balance of the Contractual Service Margin (CSM) stood at 9.1702 trillion won, up 0.7% from the same period last year. This is attributed to portfolio management focused on high-quality product groups with high CSM-driven profitability.

As of the end of March, the new insurance capital standard (K-ICS) ratio stood at 207.2%, an increase of 17.0 percentage points from the end of the previous year.

A Hyundai Marine & Fire Insurance representative stated, "By continuously managing duration matching, we have minimized market interest rate volatility, and the improvement in the actual-to-expected ratio has led to a reduction in required capital, resulting in a further improvement in the solvency margin ratio."

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