Major insurance companies increased their net profits in the first half of 2026, but the drivers behind these results varied. Life insurers benefited from their financial affiliates compensating for fluctuations in core insurance performance, while property and casualty insurers saw improvements in long-term insurance profitability.
According to the insurance industry on August 15, the combined net profit of Samsung Life, Hanwha Life, and Kyobo Life reached 3.37 trillion won, an increase of 1.425 trillion won (44.8%) compared to the same period last year. However, despite the sharp rise in consolidated net profit, the performance of core insurance operations varied by company.
The impact of financial affiliates was most pronounced at Kyobo Life. The company's standalone net profit decreased by 18.2% due to changes in actuarial assumptions and losses from the evaluation and disposal of financial assets. In contrast, its consolidated net profit attributable to shareholders increased by 21.0%. The performance of Kyobo Securities and the recently acquired SBI Savings Bank, which was integrated into the consolidated results starting in the second quarter, contributed to this divergence between core and consolidated results.
This structure, where financial affiliates support consolidated performance, was also evident in other major life insurers. Samsung Life saw a 35.9% decline in insurance service profits, but increased its consolidated net profit due to contributions from subsidiaries and the reversal of one-time provisions. Hanwha Life improved both insurance and investment profits, bolstered by earnings from Hanwha General Insurance, Hanwha Investment & Securities, and overseas subsidiaries. While all three major life insurers reported increased consolidated net profits, it is difficult to view this as a recovery in core insurance operations.
However, indicators of future insurance profits showed improvement. The new contract service margin (CSM) for the Big Three life insurers totaled 3.8236 trillion won in the first half, a 32.6% increase from the previous year, driven by expanded sales of protection products such as health insurance.
In the property and casualty sector, performance improvements stemmed from core insurance operations. The Big Five property and casualty insurers (Samsung Fire & Marine, DB Insurance, Meritz Fire & Marine, Hyundai Marine & Fire, and KB Insurance) reported a combined net profit of 4.4701 trillion won, a 7.8% increase compared to the same period last year. This recovery was attributed to improvements in long-term insurance loss ratios and the gap between expected and actual results.
However, auto insurance posed challenges for these insurers. Rising loss ratios due to premium reductions and increased accidents led Hyundai Marine & Fire to report a loss in its auto insurance segment, while KB Insurance was the only one among the Big Five to see a decline in net profit for the first half.
An industry official stated, “For life insurers, the recovery of insurance profits will be crucial, while for property and casualty insurers, managing the rising loss ratios in auto insurance will determine their performance in the second half.”
* This article has been translated by AI.
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