Hanwha Investment Securities announced on May 18 that Korean Re achieved its highest-ever performance due to the absence of major claims and improved investment results. The firm raised its target price from 12,500 won to 19,000 won and upgraded its investment recommendation to "buy."
Kim Do-ha, a researcher at Hanwha Investment Securities, stated, "In the first quarter, net profit reached 209.5 billion won, a 131% increase compared to the same period last year, marking the highest level ever recorded." He noted that unlike the previous year, which saw significant incidents such as the earthquake in Myanmar, wildfires in Los Angeles, and fires in the Yeongnam region, this quarter did not have any noteworthy major claims.
He added, "The profit from the Premium Allocation Approach (PAA) reached an all-time high, driving an earnings surprise, and both incurred insurance claims and adjustments to claim factors showed positive trends. The effects of the profitability-focused portfolio adjustments that have been ongoing for several years are also becoming evident."
Kim further explained, "Investment income also rose by 136% year-on-year due to improved stock management results, with stock returns showing a strong performance nearing annual levels alongside an increase in managed assets."
He projected, "With the upgraded credit rating and improved profitability, it will be possible to expand volumes starting in 2027. Considering the complete retirement of treasury shares and the continuation of a high dividend policy, the attractiveness of shareholder returns is expected to increase."
* This article has been translated by AI.
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