Hanwha Life Financial Services Achieves First Profit in 3 Years Since 'Separation of Production and Sales'

by Choi Donghyeon

Published 01 Apr.2024 09:51(KST)

Hanwha Life announced on the 1st that its subsidiary-type corporate insurance agency (GA), Hanwha Life Financial Services, succeeded in turning a profit for the first time since the 'separation of manufacturing and sales' (product manufacturing and sales separation) in 2021.

Hanwha Life Financial Services recorded sales of 1.5605 trillion KRW and a net profit of 68.9 billion KRW last year. Sales increased by 72.9% compared to the previous year, and net profit turned positive. In its first year of launch in 2021, it posted a net loss of 168.1 billion KRW, and after a deficit of 48.2 billion KRW in 2022, it achieved profitability for the first time this year.

The number of insurance planners (FPs) increased from 19,131 in 2021 to 22,609 last year. The income of planners rose from 42.21 million KRW in 2020, just before the separation of manufacturing and sales, to 69.42 million KRW in 2023.

Hanwha Life Financial Services paid approximately 1.5 billion KRW in dividends to Hanwha Investment & Securities Private Equity (Han투PE), which holds an 11.1% stake. A Hanwha Life official stated, "This proves future growth potential and has increased the investment market's expectations regarding the possibility of an initial public offering (IPO) in the future."

Thanks to the progress of Hanwha Life Financial Services, Hanwha Life's new contract annualized premium equivalent (APE, a concept converting premiums to an annual basis) rose by 52% compared to the previous year. Protection-type APE increased by 114% year-on-year. Last year, the new contract insurance contract margin (CSM) reached 2.5 trillion KRW.

Lee Kyung-geun, CEO of Hanwha Life Financial Services, said, "The support system for planners' activities, which has the industry's best competitiveness, is the reason behind achieving profitability and increasing corporate value in three years," adding, "We will continue to grow as the best GA in Korea that satisfies customers, shareholders, the company, and planners alike."

Hanwha Life Insurance. [Photo by Hanwha Life Insurance]