Hanwha General Insurance reported a double-digit increase in net profit for the third quarter of this year, driven by improved profitability in its core insurance operations. The significant rise in insurance profit, particularly from long-term insurance, offset a decline in investment income.
The company announced on November 11 that its net profit for the third quarter reached 96.1 billion won, a 34.1% increase from 71.6 billion won in the same period last year. Cumulative net profit for the year stood at 311.4 billion won, up 5.8% compared to the previous year.
During the same period, revenue rose to 1.9379 trillion won, marking a 21.2% increase year-on-year. Cumulative revenue also increased by 19.6% to 5.8869 trillion won.
The surge in insurance profit was a key factor in the improved performance. In the third quarter, insurance profit soared to 132.1 billion won, up 196.7% from 44.5 billion won a year earlier. This increase was attributed to better performance in long-term insurance, which saw a 69.4 billion won improvement in profit due to a reduction in the gap between expected and actual insurance payouts.
Profitability also improved in auto and general insurance, driven by a focus on high-quality contracts and a decrease in claims.
However, investment income fell to 96.2 billion won, down 38.3% from 156 billion won in the same quarter last year. Despite this decline, operating profit increased by 21.2% to 114 billion won, thanks to the rise in insurance profit.
The insurance contract margin (CSM), an indicator of future profitability, continued to grow. The new contract CSM for the third quarter reached 306.6 billion won, an 8.0% increase from the same period last year. This growth was influenced by the expansion of sales in high-value products, such as women's insurance. As of the end of the third quarter, the total CSM held was 4.6225 trillion won, up 361.8 billion won (8.5%) from a year earlier.
The capital adequacy ratio, a measure of financial stability, was estimated at 186% before the application of transitional measures at the end of September, and 231% after.
A Hanwha General Insurance official stated, "We will continue to enhance our profitability by strengthening our sales portfolio centered on high-value products like women's insurance. We aim to improve profitability by increasing operational efficiency and attracting high-quality contracts through the end of the year and into next year."
* This article has been translated by AI.
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