Lotte Non-Life Insurance Posts Net Income of 51.3 Billion Won Last Year, Up 111% from a Year Earlier

by Lee Seunghyeong

Published 12 Feb.2026 16:34(KST)

Lotte Non-Life Insurance announced on February 12 that its net income for last year came to 51.3 billion won, up 111.9% from a year earlier.

Lotte Non-Life Insurance Posts Net Income of 51.3 Billion Won Last Year, Up 111% from a Year Earlier

During the same period, operating profit was 64.7 billion won, an increase of 108.4%. Investment operating profit turned to a surplus of 37.7 billion won.

Last year’s annual Contractual Service Margin (CSM) amortization profit was 213.9 billion won, remaining at a similar level to the previous year. At the end of last year, CSM stood at 2.4749 trillion won, up by more than 150.0 billion won from a year earlier, and newly inflowing CSM from new contracts for the year totaled 412.2 billion won.

Earlier, Lotte Non-Life Insurance reflected the temporary and one-off impact of regulatory changes, including the “assumption of loss ratio by attained age” applied in the first quarter of last year. From the second quarter onward, it regained a stable performance trend and posted 27.0 billion won in insurance operating profit.

The turnaround to a surplus in investment operations was the result of structural improvement through “investment asset rebalancing” focused on safe assets. Since October 2019, Lotte Non-Life Insurance has been pursuing structural improvements to secure the sustainability of its investment operations, including the preemptive sale of beneficiary certificates, securing safe assets such as bonds, and reducing required capital.

At the end of last year, the provisional Korea Insurance Capital Standard (K-ICS) ratio was 159.3%, improving by 39.4 percentage points in just three quarters since the first quarter. The improvement in capital indicators over a short period reflected, in combination, the recovery of earnings capacity driven by higher insurance operating profit and the stabilization of investment operations, as well as the effects of asset structure improvement.

A Lotte Non-Life Insurance official said, “We achieved an improvement in our capital indicators within a short period, as the recovery of earnings capacity from higher insurance operating profit and the stabilization of investment operations was combined with the effects of asset structure improvement,” adding, “We will continue to strengthen our business base with a focus on improving capital soundness.”