Hyundai Marine & Fire Insurance reported a decline in net profit for the third quarter compared to the previous year. While improvements were seen in long-term and general insurance, poor performance in auto insurance and investment profits impacted the overall results.
On November 13, Hyundai Marine & Fire announced that its standalone net profit for the third quarter was 165.7 billion won, a decrease of 9.6% from the same period last year.
Revenue increased by 2.8% to 4.3974 trillion won, while operating profit fell by 3.4% to 237.2 billion won.
In the third quarter, profits from long-term and general insurance rose to 210 billion won and 65.3 billion won, marking increases of 16.2% and 85.5%, respectively, compared to the previous year. The long-term insurance sector continued to show improvements in the deficit from insurance claims, and general insurance demonstrated a trend of stabilizing overall loss ratios despite high-value claims.
However, the auto insurance segment recorded a loss of 13.1 billion won due to accumulated premium reductions and rising compensation costs. Investment profits also suffered, resulting in a loss of 27.8 billion won due to valuation losses in stocks, bonds, and alternative investments.
Hyundai Marine & Fire's cumulative net profit for the third quarter reached 780.8 billion won, reflecting a 23.1% increase from the same period last year.
The cumulative profit from long-term insurance surged by 71.8% to 824.8 billion won. Despite high-value claims, general insurance profits increased by 54.0% to 167.5 billion won, showing a trend of stabilizing overall loss ratios.
Indicators of profitability and soundness also showed improvement. As of the end of the third quarter, the CSM balance stood at 10.1692 trillion won, a 14.2% increase from the end of the previous year, surpassing the 10 trillion won mark. The K-ICS ratio rose by 20.2 percentage points to 210.3%, maintaining stable capital adequacy due to the increase in the CSM balance.
* This article has been translated by AI.
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