Hyundai Marine & Fire Insurance announced that its net profit for the first half of the year reached 615.1 billion won, a 36.4% increase compared to the same period last year.
Profits from long-term insurance surged to 613.9 billion won, up 105.7%. This increase was attributed to a reduction in the deficit from insurance claims and a one-time gain from the implementation of advanced guidelines for actuarial assumptions.
Profits from general insurance rose by 38.9% to 102.2 billion won, benefiting from a base effect due to high claims in the previous year and stabilization of loss ratios. However, the auto insurance segment reported a loss of 10.2 billion won, reversing from profit. Despite a premium increase in February, the cumulative reduction in premiums, rising claims costs, and delays in improvements to the '8-week rule' for treatment of regular patients impacted results.
Investment income partially recovered from first-quarter evaluation losses due to rising interest rates but still fell 55.3% year-on-year to 105.8 billion won.
In the second quarter, net profit was 391.8 billion won, marking a 58.2% increase from the same period last year. Long-term insurance profits reached 348.0 billion won, while general insurance profits were 52.0 billion won, reflecting increases of 89.0% and 88.0%, respectively. Auto insurance also turned a profit of 3.8 billion won.
As of the end of June, the balance of the insurance contract margin (CSM) stood at 9.8944 trillion won, an 11.2% increase from the end of last year. The solvency ratio (K-ICS) improved by 18.9 percentage points to 209.0%, influenced by rising interest rates.
* This article has been translated by AI.
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